HIGH LEVEL MEETING REVIEWS PACE OF PRIVATISATION OF KESC AND OTHER WAPDA ENTITIES

Islamabad, January 07, 2004

A high level meeting attended by Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation & Investment and Mr. Aftab Ahmad Khan Sherpao Federal Minister for Water & Power reviewed the status of privatisation of Karachi Electric Supply Company (KESC) and other WAPDA entities including Faisalabad Electric Supply Company (FESCO), Jamshoro Power Company (JPC) and Peshawar Electric Supply Company (PESCO). While discussing the present status of privatization process of these power sector entities, the meeting identified the transaction issues, which were hindering the process and decided to accelerate the process and take all these transactions to a point of sale and bidding by June 2004.

The meeting was also attended by Mr. Iftikhar-ul-Haq, Member Privatisation Commission, the Secretaries of Ministries of Privatisation and Water and Power, the Chairman WAPDA, Chief Executives of PEPCO, JPC, FESCO, KESC and PESCO. Representatives of NEPRA and Financial Advisors appointed for these privatizations were also present.

The meeting was informed that the interested parties are to soon start due diligence of KESC. Tribal Areas are being separated from PESCO and separate license is being arranged for power distribution in the tribal areas. This will enable the Financial Advisors to go ahead with the due diligence of PESCO. The meeting noted with satisfaction that the parties interested in buying FESCO and JPC are on board and carrying on with their due diligence leading to valuation of these entities for bidding during the current financial year.