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In response to the invitation to the investors on September 29, 2003 the
Privatisation Commission ("PC") has received five Expressions of Interest ("EOI")
from reputed utility operators and strategic and financial investors
interested in acquiring up to 73% of the equity in Karachi Electric Supply
Corporation (KESC), with management control. Asian Development Bank has
already indicated that it may be willing to take an equity interest in KESC of
7.67% from the available 73% at privatisation.
The parties/consortium of parties submitting the EOIs include 1. ABB (Pvt)
Ltd, USA-Pakistan, 2. Corner Stone Partners LLC, USA, 3. Hasan Associates
(private) Limited Consortium including Al Bayarak Al Baida Co., Kuwait; and
IOSKOM, Turkey, 4. Independent Power Corporation PLC, UK and 5. Kanooz Al
Watan for Project LLC, Saudi Arabia.
Karachi Electric Supply Corporation Limited ("KESC") is the vertically
integrated electric utility supplying power to the city of Karachi, Pakistan's
largest industrial and commercial centre. In addition, it supplies the
industrial part of Thatta and the Lasbella Districts. In total the KESC
franchise area covers approximately 6,000 square kilometers with a
population in excess of 12 million. The GoP has undertaken to continue with
the approved current investment programme (until June 2006) to upgrade the
transmission and distribution system and to underwrite the formula based
tariff regime as determined by the Regulator, National Electric Power
Regulatory Authority (NEPRA), in September 2002.
PC reserves the right to reject or accept any EOI from any person. Parties
with relevant credentials who have submitted EOIs will be dispatched Request
for Statement of Qualifications (RSOQ).
It is an unique opportunity to acquire controlling interest in the integrated
power utility responsible for generation, transmission and distribution of
electricity to Karachi, the largest industrial and commercial city in Pakistan
with a commitment to continuing support by GoP and possible co-investment by
Asian Development Bank during turn around period.