Kot Addu Power Company

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National Power International of the UK has purchased 36% of the 1600-MW Kot Addu Power Company (KAPCO) from the Water and Power Development Authority of Pakistan (WAPDA) at a total cost of $291.0 million. In early 1996, National Power won the bidding for the first 26% tranche based on the highest valuation of the plant, $1583 million. The purchase price was $215 million and National Power is assuming $756 million in debt through its 26% stake in the company. In October 1996, National Power purchased an additional 10% from WAPDA at a cost of $76.0 million. In February 2005, WAPDA sold an additional 20% (176 million shares) of its shares in KAPCO for US$ 77.6 million in an initial public offering (IPO) on the domestic capital market. Prior to the divestiture, the World Bank had partially financed the installation of two 125-MW, two 100-MW turbines, and a 104-km 220 kV transmission line. A 25 year-PPA was signed with WAPDA and a fuel supply agreement has been signed with the Sui Northern Gas Co. National Power and the government had been involved in management disputes until Oct. 2000, when an agreement was reached among the parties. In Nov. 1999, National Power announced the split of its international and domestic operations, International Power was created.