First Pre Bid Conference of Pakarab Fertilizers (Private) Limited on April 5, 2004

Islamabad, April 3, 2004

Privatisation Commission is holding Pre-Bid Conference for the privatisation of Pakarab Fertilizer (Private) Limited (PFL) through the sale of 94.8 % shares on 'as is where is' basis, on April 5, 2004 (Monday) at 1100 hrs at  PC Conference Room, Islamabad. It will be participated by Pre-Qualified parties. Pakarab Fertilizers (Private) Limited is 52 % GOP (through National  Fertilizer Corporation) owned public company, located at Khanewal Road,  Multan in the Punjab Province. International Petroleum Investment Company of UAE (IPIC) owns the balance 48 % shares.

Four parties, which have already been Pre-Qualified for the privatisation of PFL will participate in the Pre-Bid Conference. The four parties include Nishat Chunian Limited/Umer Fabrics, Fatima Group of Companies, Dawood  Hercules Chemical Limited and Employees Management Group, which is conditionally pre-qualified.

The company was incorporated in 1973 with a paid-up capital of Rs.743.061 million. PFL is the largest fertilizer complex in Pakistan and the only factory producing Calcium Ammonium Nitrate (CAN) and Nitro-phosphate (NP) commonly known as compound fertilizer. Raw materials for manufacture of the fertilizers are natural gas supplied by Sui Northern Gas Pipelines Limited through its transmission network and rock phosphate imported form Jordan/Morocco.

The project is located at Khanewal Road, Multan. The site area comprises 302 (301.47) acres, which includes area for the factory and the housing colony, which is owned by the company.

The company produces Nitro-phosphate (NP), Calcium Ammonium Nitrate (CAN) and Urea. The annual capacities of the products are Ammonia 316,800 metric tonnes, Nitric acid 455,400 metric tonnes, Nitrophosphate 304,500 metric tonnes, Calcium Ammonium Nitrate 450,000 metric tonnes and Urea 92,400 metric tonnes.

Currently the company's products are being marketed through the National Fertilizer Marketing Limited (NFML), a government owned company responsible for marketing the fertilizer production of all the government owned fertilizer-manufacturing units.

The fertilizer sector offers strong opportunities for further development by private sector entrepreneurs. The plant is operating at excellent efficiency levels, which are, on the average, above the installed capacity. All the plants are in sound condition and have been supplied by renowned suppliers. The location of the plant is ideal to supply fertilizer not only in central Pakistan but also to the Iranian Balochistan and CIS states. The company produces Urea, CAN and NP and has total monopoly in the production and supply of CAN.