Brief History

Japan Power Generation Limited is a public limited company, incorporated on September 29, 1994 under the Companies Ordinance, 1984 and its shares are quoted on the Pakistan Stock Exchange. The principal business of the Company is to generate and supply power to the national grid under the terms of the Government of Pakistan’s Energy Policy of 1994. The Company commenced actual commercial operations on March 14, 2000. The Company’s power plant is located near Jia Bagga railway station, off Raiwind Road, District Lahore, Pakistan, and has an installed capacity of 135 MW. It consists of 24 medium-speed four stroke Mitsubishi diesel engines coupled to Siemens generators with an output of 5.65 MW each, designed for operation on heavy fuel oil (HFO), with start up and shut down operations on high-speed diesel (HSD). All necessary auxiliary equipment and installations such as transmission lines, fuel storage tanks, workshops, switchyard, decanting facilities and fuel-testing laboratory are located within the plant complex, with well-qualified and fully trained staff working in three shifts to operate the plant.

Plant Details

The plant is built on a site of approximately 25 acres in the vicinity of Jia Bagga railway station, off Raiwind Road, District Lahore in the province of Punjab, Pakistan. It consists of 24 medium-speed four stroke gensets of 5.65 MW each running on heavy furnace oil with an installed capacity of 135.6 MW and a rated dependable capacity of 120.5 MW, with 30 day fuel storage capacity, rail and truck decanting facilities and all necessary auxiliaries and infrastructure.

Status of the Company

The plant has been shut down since October 2012 due to disputes with WAPDA. After exhausting the expert mediation process which was decided in favour of the Company but disputed by WAPDA, the only option left to the Company was to opt for international arbitration. The final award of the Arbitration Tribunal, largely upholding the Company’s position, was announced on May 19, 2014; however, this ruling has also been challenged by WAPDA in the local lower courts. Notwithstanding the above, the Company remains engaged with WAPDA, the Ministry of Water & Power and NEPRA to resolve all disputes and to work out options to re-start plant operations. The plant is being fully maintained and is in fit condition for immediate start-up.

Permissible Business Activities

  • To do all such acts, deeds and things as would be required conducive and incidental to the attainment of this object
  • To acquire land to construct its buildings and install machinery thereon
  • To purchase machinery, raw material, chemicals and lubricants from the local and/or foreign market
  • To sell its products/electricity within Pakistan to WAPDA, Government and private sector
  • To open and operate bank accounts, arrange for overdraft facilities against securities of its property and to issue term finance certificates, debentures, draw, make, accept endorse, discount, execute and issue promissory notes, bills of exchange, bills of lading, receipts, warrants, guarantees and other negotiable, transferrable instruments, etc.
  • To borrow or raise or arrange local and/or foreign currency loans from Scheduled Banks, Industrial Banks and financial institutions for the purchase of machinery, construction of factory buildings, working capital and for its other requirements
  • To guarantee the performance of its contracts and obligations in relation to the payment of any loan, debenture, stocks, bonds, securities by or in its favour and to guarantee the payment or return on investment or of dividends on its shares
  • To acquire, improve, manage, develop, exchange, sell, mortgage, enfranchise, dispose of, turn to account or otherwise deal with all or any part of its property, rights, patents and concessions
  • To enter into any arrangements with any Government or other authorities, supreme, municipal, local, etc. to obtain its rights, privileges, and concessions
  • To open, establish, maintain and control its offices, sub-offices, agencies, sub-agencies, depots, show-rooms, sales centres/points in and/or out of Pakistan
  • It is declared that nothing contained above shall be construed as empowering the Company to undertake or to indulge in the business of banking, leasing, investment or insurance directly or indirectly as restricted under the law, or any other unlawful operation