ISLAMABAD: Federal Minister for Privatisation and Investment Wasi Zafar has directed the Privatisation Commission officials to expedite the privatisation process of SME Bank, Jamshoro Power Company (JPC), Faisalabad Electric Supply Company (FESCO), Heavy Electrical Complex (HEC), Motels and Restaurants of Pakistan Tourism Development Corporation (PTDC) and other transactions, which were at an advanced stage. He was chairing a meeting of PC officers and consultants to review the status and progress of the privatisation process of on going and upcoming transactions.
The minister directed the concerned officials to finalize the transaction structure SME Bank at the earliest to bring the transaction to the market. A Financial Advisory Services (FAS) agreement for the privatisation of SME Bank had been signed between the Privatisation Commission and BMA Capital.
Mr. Wasi Zafar said that the government was determined to transfer the benefits of privatisation to the maximum citizens of Pakistan under the ‘Privatisation for the People’ program, which has so far benefited 1.3 million common citizens through appreciation in the value of the shares by 2.7 times and the dividend received by them on the shares acquired by them under this program in OGDCL, SSGC, PPL, KAPCO, NBP, UBL, HBL etc. He directed the PC officials to line up more Initial Public Offerings (IPO)s and Secondary Public Offerings (SPO)s of public sector entities with proper time line and sequencing.
While reviewing the status and progress of Jamshoro Power Company (JPC), the meeting was informed that the transaction was at a very advanced stage. Currently five parties have been pre-qualified for transaction, which include Al Abbas Power Generation Limited, China National Machinery & Equipment Import & Export Corporation, Engro Chemical Pakistan Ltd, Metro Securities Limited and United Bank Limited Consortium. PricewaterhouseCoopers are Financial Advisor (FA) for the transaction. The transaction includes sale of 51% shares along with management control to a qualified strategic investor. NEPRA announced on July 3, 2007 a multi-year tariff for JPCL valid up to year 2014 Based on the tariff approved by NEPRA on July 3, 2007, FA is working on valuation model and valuation of JPCL for approval by PC Board & CCOP prior to bidding. As regard to Faisalabad Electric Supply Company Limited (FESCO) the meeting was informed that this transaction was also at an advanced stage Four parties have been pre-qualified for transaction, which include Rupali Polyester Private Limited, National Power Generation and Supply Company (Crescent Group), Fauji Foundation and United Bank Limited Consortium. International Finance Corporation (IFC) is Financial Advisor (FA) for the transaction. The transaction includes sale of 56% shares along with management control to a qualified strategic investor. The successful investor will be required to institute out of the 56% shares Employees Sales Option for 5% shares acquired within a period of one year from the Closing Date. NEPRA announced on 23 February 2007 multi years tariff for five years. The Government has notified the tariff. The meeting also reviewed the status and the progress of the privatisation process of various other upcoming transactions.-SANA