PC RECEIVES FIVE EOIs FOR PRIVATISATION OF KARACHI ELECTRIC SUPPLY CORPORATION LIMITED (KESC)

Islamabad, November 03, 2003

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.