|
|
|
|
|
Kanooz Al-Watan of Saudi Arabia in consortium with long term German
Technical operator (Siemens) in Pakistan offered highest bid of Rs.20. 24
billion during the bidding ceremony for Karachi Electric Supply Company (KESC)
held here today under the chairmanship of Dr. Abdul Hafeez Shaikh Federal
Minister for Privatisation & Investment.
The bidding took place in the presence of the representatives of the Consortia
of Hasan Associates (Private) Limited and Kanooz Al-Watan, Kingdom of
Saudi Arabia. Both the parties dropped sealed bids in the bid box in the
presence of a wide spectrum of journalists and government officials. The bids
were opened and announced by the representatives of the national and
international media.
According to the results, Kanooz Al-Watan for Project Consortium, Saudi Arabia
shall pay Rs.15. 85 billion within one month after the issuance of Letter of
Acceptance (LOA) following the necessary approval from the CCOP. In addition
the new owner will inject Rs.4. 3 billion in preference shares. The second bid
from Hasan Consortium was for Rs.9. 7 billion with a commitment of additional
Rs.4. 3 billion in preference shares, amounting to total bid of Rs. 14. 0
billion.
Addressing on this occasion Dr. Abdul Hafeez Shaikh Federal Minister for
Privatisation & Investment said that the government during the past five years
has been forced to inject Rs.85 billion to cover the utility losses. KESC has
been running into losses for over a decade and is badly bleeding the exchequer
by about over Rupees one billion a month. He stated that the privatisation of
KESC would bring better services through professional management, new
investment and employment benefits.
Elucidating the measures taken for the interests of the workers the Minister
added that the new company would offer 20 % increase in salaries to the
contract employees 10 % shareholding to the employees, retrain the workforce
and trade union activities would be resumed after six months of handing over.
Dr. Abdul Hafeez Shaikh hoped that the completion of KESC transaction would
send strong signal to the investors and would also give impetus to the overall
privatisation program of Pakistan. It would be a landmark transaction in the
power sector, which would not only set the scene for a rapid turn around of
KESC but also for the privatisation of other electric utilities and for
significant investment in the infrastructure of Karachi. He thanked the
President and the Prime Minister for their strong support. Later,
Privatisation Commission Board in its meeting recommended the highest offer
received for KESC for approval of CCOP, which willmeet shortly.
The Government of Pakistan will retain a minimum 26 % stake in KESC for the
time being to ensure commitment as a measure of comfort to the prospective
buyer of the utility.