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All arrangements have been finalized to hold bidding for the privatisation
of Pak American Fertilizers Limited (PAFL) at Karachi on February 28, 2006
(Tuesday) at Karachi under the chairmanship of Dr. Abdul Hafeez Shaikh Federal
Minister for Privatisation & Investment. PAFL is the first fertilizer
manufacturing concern in Pakistan. It was established in 1959.
Out of eight (8) parties, which had completed the due diligence of the
transaction, five (5) have become eligible to participate in the bidding by
depositing the required earnest money of Rs.350 million each within the
stipulated period. The parties include I- Ibrahim Fibres Ltd, Faisalabad (II)
Jahangir Siddiqui Capital Markets Ltd, Karachi, (III) Kohinoor Textile Mills
Ltd & Associates, Lahore (IV) Nishat (Chunian) Ltd, Lahore and (V) Pak Arab
Fertilizers (Pvt) Ltd, Multan. The two rounds of bidding process will be
conducted in the presence of the representatives of the print and electronic
media. During the first round the bidders will drop their sealed bids in the
transparent box, which will be opened and read over by the representatives of
the print and electronic media present over there. The second round will be an
open auction among the top three contenders. The results of the bidding will
be considered by PC Board to formulate its recommendations for a decision by
the CCOP.
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. 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.