HomeNewsDLL puts 50MW wind plant up for sale - Newspaper

DLL puts 50MW wind plant up for sale – Newspaper

KARACHI: Dawood Lawrencepur Ltd (DLL), a holding company for many textile and renewable energy firms, said on Tuesday it’s looking to sell its share in a 49.5-megawatt wind power project based in Gharo, Sindh.

Analysts said Gul Ahmed Textile Mills Ltd is one of the interested parties even though DLL, which is mainly owned by entities controlled by the Hussain Dawood family, didn’t name any possible acquirer of the wind project. The textile maker told investors a day ago that it was going to submit a non-binding purchase offer for an unnamed wind power firm.

DLL controls a 75 per cent stake in Tenaga Generasi Ltd, which is an independent power producer with the 49.5MW wind power plant. The rest of shareholding rests with the International Finance Corporation, a member of the World Bank Group.

The project started commercial operations in October 2016. It transmitted electricity to the National Transmission and Despatch Company (NTDC) under the Energy Purchase Agreement (EPA) until June 18, 2019. Subsequently, it sold its electricity to K-Electric Ltd under a Short-Term Power Purchase Agency Agreement (STPPAA).

However, the STPPAA expired in September 2021 and now its electricity is again being transmitted to NTDC, the company told shareholders through a note in its annual accounts for 2022.

“We are exploring the possibility of the transfer of Gharo plants to K-Electric Ltd due to the availability of its evacuation infrastructure in the area. The company, in coordination with neighbouring plants, has started discussions with the (Central Power Purchasing Agency) and the Ministry of Energy to change our connection from NTDC to K-Electric Ltd. This will provide a stable connection and reduce/eliminate curtailment,” the company said.

The revenue of Tenaga Generasi Ltd last year amounted to Rs3.4 billion, up 13.6pc on an annual basis. Its total comprehensive income for the same year remained Rs1.5bn, up 17.5pc from the preceding 12-month period.

Last month, Tenaga Generasi Ltd also announced an interim dividend for the year ending on Dec 31 totalling Rs150 million.

According to Gul Ahmad Textile Mills, DLL is supposed to have invited more than one prospective buyer to submit non-binding offers for the wind power company. Afterwards, DLL is expected to ask shortlisted investors to carry out detailed due diligence of the target company before submitting a binding offer.

Published in Dawn, November 1st, 2023

Source: dawn.com

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