Kapco Plans to Acquire Majority Stakes in TGL

Muhammad Haris

Kot Addu Power Company plans to acquire majority stakes in Tenaga Generasi Limited (TGL).

TGL is a wind power project, according to a statement of the company on Tuesday sent to the Pakistan Stock Exchange.

Kot Addu Power Company Limited (“KAPCO“) has placed a bid to acquire an equity stake in Tenaga Generasi Limited (the “Company”), which owns a 49.5 MW wind power project located in Sindh, Pakistan.

The bid would, if successful result in KAPCO owning a majority stake in the Company.

Discussions are at the preliminary stage and any potential transaction would be subject to, among others, execution of definitive documents, regulatory approvals, and internal approvals including KAPCO shareholder’s approval.APTMA Concerned over Dismal State of Power Sector

Tenaga Generasi Limited (TGL), a Malaysian company, was incorporated in Pakistan in 2004 to set up a 50MW Wind Power Plant.

The company was allocated 1200 acres of inter-tidal land for setting up the plant in the KhutiKun area, District Gharo, Sindh.

NEPRA issued a Generation License to TGL with an initial validity of 20 years. Subsequently, in January 2008, the company decided to exit Pakistan, and TGL was acquired by Dawood Lawrencepur Limited(DLL).

TGL is now a subsidiary of Dawood Lawrencepur Limited (DLL).

Following the purchase, the Alternate Energy Development Board(AEDB) in April 2008 increased the land allocation to 4881 acres. This land is sufficient for setting up a 100MW wind farm.

The current development plan envisages the setting up of a 50MW wind farm in the first phase, which would then be increased to 100MW.