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The Pre-Bid Conference for the privatisation/ sale of 94. 8 % shares of
Pakarab Fertilizers (Pvt) Limited (PFL) held here today under the chairmanship
of Mr. M Tahsin Khan Iqbal Secretary Privatisation Commission. The prospective
bidders who have completed the due diligence of the transaction discussed
various issues relating to the transaction and the bidding process. The
officials of the Privatisation Commission, Ministry of Industries &
Production, International Petroleum Investment Company (IPIC) UAE and National
Fertilizers Commission responded to the various queries made by the
prospective bidders.
Addressing on this occasion Mr. M Tahsin Khan Iqbal Secretary Privatisation
Commission said that the government was committed to the process of Public
Sector entities and would continue to adhere to the policy of providing
comfort to the investors by providing level playing field and to extend as
much benefits of privatisation to the consumers. He said that the bid
documents would be finalized in the light of the comments, suggestions and the
information gathered from today's pre-bid moot.
PC had received twelve Expressions of Interest for this public sector
industrial unit. Pak Arab Fertilizers (Private) Limited is 52 % GOP (through
National Fertilizer Corporation) owned company, located at Khanewal Road,
Multan in the Punjab Province. International Petroleum Investment Company of
UAE (IPIC) owns the balance 48 % shares.
In the pre-bid conference seven parties participated in the Pre-Bid
Conference. These included Nishat Chunian Limited/Umer Fabrics, Fatima Group
of Companies, Dawood Hercules Chemical Limited, Fauji Fertilizers, Husnain
Cotex, Al-Ghurair Group, Dubai and Employees Management Group.
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
approximately 302 acres, which includes area for the factory and the housing
colony, which is owned by the company. 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.