Daily Times

KARACHI: The K-Electric Limited (KEL) has requested the National Electric Power Regulatory Authority (Nepra) to allow it to transfer its 66.4% shares to the Shanghai Electric Power (SEP), said a document.

KES Power Limited currently owns 66.4% in the total issued and paid up capital of KEL while KES Power has agreed to sell up to 66.4% shareholding in KEL to SEP.

Moonis Abdullah Alvi, Chief Financial Officer (CFO) at KEL stated in the application to Nepra that the proposed transaction has already been approved by the Competition Commission of Pakistan (CCP) while as a consequence of the proposed transaction; the current nominees of KES Power on the board of KE will be replaced by nominees of the proposed purchaser.

The State Power Investment Company (SPIC) which is a parent company of the KEL’s new owner SEP is already a major stakeholder in China-Pakistan Economic Corridor (CPEC) projects.

The SPIC, through its various subsidiaries has invested heavily in different power projects. Under CPEC, the SPIC, parent company of SEP is already engaged in several joint ventures in Pakistan which includes development of a coal-fired project with Hub Power Company Limited through its subsidairy China Power International. The project will have an installed capacity of 1,320 MW, potentially expanding to 3,960 MW. This project has been listed as a priority in the CPEC agreement, and is scheduled to come online in 2019.

Another project is provision of technology for a 2x330MW sub-critical coal turbine power plant in Pakistan’s Thar Coalfield which has been initited through SPIC’s another auxiliary corporation Mengdong Energy Group. Thar coalfield is a CPEC priority project where the company is assisting in the design of the Chashma Nuclear Power Plant in Chashma City through another subsidiary Shanghai Nuclear Engineering Research and Design Institute while this was the China’s first exported nuclear power plant.

The SEP is a publicly traded Chinese company, tracing its roots in the power sector back to 1880, listed on the Shanghai Stock Exchange and is principally engaged in the generation and transmission of electricity.

SEP is one of the major electric energy companies in Shanghai, and the parent company of SEP is the SPIC which is engaged in development, investment, construction, operation, and management of power plants and power generation in twenty-seven Chinese provinces, supplying approximately ten percent of the country’s total electricity.

It is one of China’s big five state-owned power generation groups with an overall installed capacity of 107 GW. SPIC is committed to the growth and development of the power sector in Pakistan and via its various subsidiaries has a substantial level of involvement in Pakistan across a wide range of projects.

SEP plans to continue KEL’s operational improvement. SEP has reviewed the

Multi Year Tariff (MYT) petition and broadly agrees with KEL’s business plan to the extent required to meet demand growth and improve performance standards such as SAIFI, SAIDI etc, it added.