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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.