EIGHT TO PARTICIPATE PRE-BID MOOT ON PRIVATISATION OF PAK-AMERICAN FERTILIZERS LIMITED ON SATURDAY (TOMORROW)

Islamabad, February 10, 2006

A pre-bid meeting regarding the privatisation of Pak American Fertilizers Limited (PAFL) is being held at Islamabad on Saturday February 11, 2006 at Privatisation Commission Conference Room under the chairmanship of Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment. The meting is being held to create better understanding of the transaction and the bidding process, to respond to the queries of the prospective bidders and to finalise the date of bidding, which is expected to be held during the current month.

Twenty eight (28) parities submitted _Expression of Interest (EOI) in response to the advertisement made by Privatisation Commission. Out of them fourteen (14) parties submitted Statement of Qualifications (SOQs). Thirteen (13) parties were declared pre-qualified by the PC Board. All these thirteen (13) parties were asked to carry out due diligence exercise. However, only eight (8) parties turned up and completed due diligence. These eight (8) 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. Pakamerican 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.