ISLAMABAD – In the first day of talks with visiting Saudi delegation, Pakistan has rejected the Kingdom’s desire to acquire the two LNG-based power plants through state-to-state agreement.
Saudi Arabia wanted to take over state-owned 2,446 megawatts Haveli Bahadur Shah and Baloki power plants under a sovereign deal but the offer was turned down as the existing law, Privatisation Ordinance, do not provide any ground to selling the assets without rigorous bidding process, local media reported, citing sources.
It was informed to the delegation that only due legal process, which is bidding, will be adopted to sell the projects which are already completed.
Both the power plants had been set up during the previous government of the Pakistan Muslim League-Nawaz (PML-N) with the total cost of Rs191 billion.
Official sources said that a state-to-state deal regarding Greenfield project can be inked with Saudi Arabia without going into the competitive process.
A Saudi delegation led by Ahmed Hamed Al-Ghamdi, Adviser to the Saudi Minister for Energy, is in Islamabad on a five-day tour with an aim to find investment opportunities in Pakistan.
“Saudi Arabia also demanded Pakistan to provide free land, complete security and utility facilities for setting up an oil refinery of over 100,000 barrel per day capacity at Gwadar,” the sources told The Express Tribune on Monday. A final decision in this regard is likely to be taken today.
The Saudi delegation also held technical-level talks to review the possibility for investment in Reko Diq gold and copper mines.
The visit of the Gulf country’s officials came after Prime Minister Imran Khan paid his first official visit to Saudi Arabia to meeting the rulers of the state. Following the visit, Finance Minister Asad Umar and other officials told media that big deals will be signed between the two countries.
