New privatisation policy to provide level playing field and equal opportunities to investors
ISLAMABAD: The new privatisation policy provides level playing field and equal opportunities to all investors. Syed Naveed Qamar Federal Minister for Privatisation stated this while addressing a pre?bid meeting of pre?qualified bidders for the privatisation of National Power Construction Company (NPCC) here.
Referring to the sale of 51 % shares of NPCC with management control the Minister said that NPCC transaction being more than midway and at very advanced stage was exempted from the condition of maximum 26 % shares sale envisaged in the new policy.
Around 12 % in this transaction would be given to the employees under the new policy and the government shareholding would have enhanced value after improvement in the company by the new management, he said.
The pre?qualified parties for NPCC, who have completed the process of due diligence of the transaction and participated in the pre?bid meeting included 1. Pak Elektron Limited (PEL), 2. ICC (pvt) Limited, 3. Saudi Cable Company Limited, KSA, and 4. Zad Investment Company, KSA.
The pre?qualified participants of the pre?bid moot were briefed about the bidding process and bid documents of the privatisation of NPCC and the queries of the prospective bidders for the privatisation of NPCC.
The bidding date for NPCC transaction was finalized as April 27, 2009 in consultation with the pre?qualified bidders while April 22, 2009 was fixed for depositing earnest money of Rs.50 million to become eligible for participating in the bidding.
The potential bidders were informed that no employee could be laid off for 12 months and the successful buyer would not sell the company for a period of three years.
The letter of acceptance (LOA) would be issued to the successful bidder within 30 days of the bidding and the sale price along with GHS/VHS amount would be received in a single tranche within 30 days failing which the earnest money of the successful bidder would be forfeited, said Mr. Ahmed Jawad Secretary Privatisation Commission while explaining the salient features of the process.
Briefing the bidding process, Ahmed Jawad said that it would be a two?tier process. In the first round the bidders will drop their sealed bids in the transparent box in the presence of the representatives of the print and electronic media and in the second round the three highest bidders will be asked to improve their bids in open session.
The Privatisation Commission (PC) had invited Expressions of Interest (EOI) from financially sound local and foreign investors with management capability, contracting experience as well as experience of electrical installations interested in acquiring 51% interest in NPCC along with management control as already approved by the Cabinet Committee On Privatisation (CCOP).
The National Power Construction Corporation (Pvt) Limited (NPCC) is a specialist contracting company of Pakistan for construction and management of turnkey power projects including extra high voltage transmission lines, distribution networks, substations, power generation plants, industrial electrification, external lighting of housing complexes etc.
The NPCC’s major area of operation during the last three decades had been in the Middle East with concentration in Saudi Arabia.
The NPCC has successfully secured and completed projects valuing over US$ 600 million, syays a statement of the Privatization commission issued here today.
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