PC INVITES EOIs FOR PRIVATISATION OF KARACHI ELECTRIC SUPPLY CORPORATION LIMITED (KESC) BY OCTOBER 31, 2003

Islamabad, SEPTEMBER 29, 2003

The Privatisation Commission ("PC") has invited Expressions of Interest ("EOI") from qualified 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 indicated that it may be willing to take an equity interest in KESC of 7.67% from the available 73% at privatisation.

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 kilometres 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.

Interested parties have been asked to furnish their EOI along with a brief profile of the potential investor and the required non-refundable processing fee no later than Friday 31 October 2003. The PC reserves the right to reject or accept any EOI from any person. Parties with relevant credentials who submit an EOI will be dispatched a Request for Statement of Qualifications (RSOQ) starting on Wednesday 8 October 2003. Early submission of EOIs will allow parties maximum time for completion of their RSOQ requirements. An EOI shall not be construed as an offer. The Statement of Qualifications (SOQ) must be submitted to the PC no later than 1500 hours on Monday 15 December 2003.

A preliminary information memorandum containing more detailed information and guidance on lodgement of the EOI is available from the PC and will be provided upon request free of charge. 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.