Kot Addu Power Plant (the “Power Plant”) was built by the Pakistan Water and Power Development Authority (“WAPDA”) in five phases between 1985 and 1996 in District Muzaffargarh, Punjab, 90 K.M. north west of Multan on the left bank of the River Indus at a distance of 16 K.M. from Taunsa Barrage.
In April 1996, Kot Addu Power Company Limited (the “Company”) was incorporated as a public limited company under the Companies Ordinance, 1984 with the objective of acquiring the Power Plant from WAPDA. The principal activities of the Company include the ownership, operation and maintenance of the Power Plant.
On June 27, 1996, following international competitive bidding by the Privatisation Commission Government of Pakistan (the “Privatisation Commission”), the Company was privatised. At the time of privatisation and following privatisation, WAPDA divested 36% of its shareholding in the Company to the strategic investor. In August 2013, the strategic investor sold its entire shareholding in the Company to local corporate entities and individuals.
In February 2005, the Privatisation Commission (on behalf of WAPDA) sold another 18% of WAPDA shareholding in the Company to the General Public and the Company became listed. The Company is currently listed on the Pakistan Stock Exchange.
⚡ Company Overview
Kot Addu Power Company Limited (KAPCO) is a publicly listed independent power producer (IPP) in Pakistan. Operating a multi‑fuel power plant in Kot Addu, Punjab, it delivers electricity to the national grid through WAPDA/NTDC under long-term power purchase agreements .
🏭 Power Plant & Capacity
Installed capacity: Gross 1,600 MW (net ~1,386 MW), generated via 10 gas turbines and 5 steam turbines.
Fuel types: High‑speed diesel (HSD), furnace oil (HSFO), and natural gas .
Originally built by WAPDA in phases from 1985 to 1996; privatized in 1996 and later listed on the Pakistan Stock Exchange .
🏢 Ownership & Management
Initially managed by WAPDA, then sold to a strategic investor (UK-based National Power), with further public listing in 2005.
Since 2013, held entirely by local investors; board includes notable figures like Sajjad Ghani, Chairman of WAPDA.
📈 Financial Highlights
FY2024: Net profit ₹4.31 billion (EPS: 4.90 PKR), up from ₹3.96 billion (EPS: 4.50) in FY23 .
FY2023: Large revenue drop due to PPA expiry—net sales down 81%, gross loss margin –2.24%, net profit fell ~60%.
9 MFY24: Gross loss ~₹2.8 billion; net profit declined by 7.6% to ₹3.58 billion.
🔄 Licence & Tariff Updates
KAPCO’s generation licence for 1,600 MW expired Sept 21, 2024. They’ve petitioned NEPRA for a 7‑year renewal for 500 MW capacity.
NEPRA has held public hearings, issued show-cause notices to NTDC/MEPCO, and raised concerns over reviving the idle plant amid surplus national capacity.
⚠️ Key Issues & Challenges
Idle Plant: KAPCO’s capacity was underutilized post‑PPA expiry October 2022, triggering NEPRA scrutiny over whether the revival is necessary .
Capacity Payments: Criticism surfaced (e.g. on Reddit) over IPPs receiving payments despite low actual output.
Underutilization: Load factor dropped to ~15.7% in 2023 (from 63% in 2018); net production down to 588 GWh; thermal efficiency around 42%.
🌱 Expansion & Investment Plans
Diversification into renewables: KAPCO is evaluating wind, hydel, and solar power projects, including bids for 600 MW solar and stakes in wind farms.
They’re allocating funds (~₹47 billion) to mutual funds and planning a small 1–2 MW solar plant for internal use.
📊 Public Sentiment & Market Watch
As of June 2025, KAPCO trades at ~33.79 PKR on PSX.
Reddit discussions reflect concerns about capacity payments during idle periods, and some investors advise waiting for declared dividends before deciding on selling.
