BIDDING FOR PRIVATISATION OF PAK-AMERICAN FERTILIZERS LIMITED ON FEBRUARY 28, 2006

Islamabad, February 11, 2006

A pre-bid meeting held here today for the privatisation of Pak American Fertilizers Limited (PAFL) decided to hold bidding for PAFL on February 28, 2006 at Islamabad. Mr. M. Tahsin Khan Iqbal Federal Secretary  Ministry of Privatisation & Investment chaired the meeting.

During the meeting the queries of the prospective bidders were also responded by the representatives of the respective Ministries and the departments and the bidders were informed regarding the bidding process, which will be held in the presence of the representatives of the print and electronic media.

Eight (8) parties, which have completed the due diligence of the transaction participated in the pre bid meeting. The parties are (i) Associated Group, Lahore (ii) Bestwary Cement Ltd, Islamabad (iii) Dawood Hercules Chemicals Ltd, Lahore (iv) Ibrahim Fibres Ltd, Faisalabad (v) Jahangir Siddiqui Capital Markets Ltd, Karachi, (vi) Kohinoor Textile  Mills Ltd & Associates, Lahore (vii) Nishat (Chunian) Ltd, Lahore (viii) Pak Arab Fertilizers (Pvt) Ltd, Multan

Pak American Fertilizers Limited (PAFL) is located at Iskanderabad (Daudkhel), Distt: Mianwali and produces 1050 metric tons of urea per day. PAFL is the subsidiary of National Fertilizer Corporation of Pakistan (NFC). Japan Bank of International Cooperation (JBIC) provided loan for setting up the fertilizer plant. The plant was commissioned in 1999. akamerican Fertilizers (Private) Limited (PAFL) is the first fertiliser manufacturing concern in Pakistan. It was established in 1959. The old plant was closed down in 1997 and a new Ammonia/Urea Plant commenced commercial production in 1999.  The new plant is designed to produce 600 Ton/Day Ammonia and 1,050 Ton/Day urea using natural gas as feed and fuel.

Both plants have been designed by TOYO Engineering Japan. Ammonia plant is under license from Kellogg International, USA, while urea plant is TEC's own. The plants are latest in design and most modern. The company possesses over 11,481 Kanals of land, comprising 6,432 for Factory, 2,818 for Housing Colony and 2,230 for experimental farm.