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Due to the increasing interest of parties to participate for the
privatisation of Heavy Electrical Complex (HEC) the Privatisation Commission
has extended the date for filing the Expressions of Interest (EoI) for HEC to
November 30, 2006. Earlier, it was advertised on October 20, 2006 in the
leading national dailies and was re-advertised on October 27, 2006 with
November 22, 2006 as last date for receiving EOIs.
EOIs should be submitted (in duplicate) together with a non-refundable
processing fee of US$ 5,000/- or PKR 300,000/- to reach the PC at the given
addresses by November 30, 2006.
All the parties, which shall submit EoI, would be sent Request of Statement of
Qualification (RSOQ) for response, which shall form the basis of
pre-qualification. The last date to submit the Statement of Qualification (SOQ)
shall now be December 15, 2006 accordingly.
Heavy Electrical Complex (HEC) is one of the industrial units of State
Engineering Corporation (SEC) engaged in the manufacturing of power
transformers of different types (total annual capacity 3000 MVA) with primary
voltage rating of 66 and 132 KV. In addition, the HEC undertakes repair and
refurbishment of old and damaged power transformers upto 500 KV. HEC was
incorporated as a private limited company in 1991 and commenced full-scale
commercial operation in 1997.
HEC is located in Hattar Industrial Estate about 65 Km from country’s capital
Islamabad. HEC is spread over an area of 81.379 acres. A total of 63 acres of
land is included in the transaction out of which 20 acres is non-core land for
expansion. Major clients of HEC products include WAPDA, its corporatized
entities and KESC.
HEC has six main manufacturing shops namely Machine shop, Winding shop,
Insulation shop, Core shop, Fabrication shop and Assembly shop. In addition
HEC has an oil purification shop, high voltage test laboratory equipped with
250 tonne overhead traveling crane. HEC can diversify its manufacturing range
by including other products such as instrument transformers, high voltage
circuit breakers and other grid stations equipped for meeting demand of the
products in domestic and foreign markets.
The Privatization Commission has invited Expression of Interest (EOI) from
prospective investors (Mechanical Engineering, Electrical Engineering and or
Industrial Companies and groups, consortium of investors with demonstratable
ability to own, efficiently manage and operate the Company) for the
acquisition of minimum 90% shares of Heavy Electrical Complex (‘HEC’) together
with management control on an `as is, where is’ basis.
The Purchaser shall continue to operate company’s manufacturing facility and
shall not in any way abandon, cease to operate or otherwise shutdown the
existing Company manufacturing facility. The Purchaser will not in any form or
manner dispose off, alienate transfer any or all land in the name of the
Company without the prior consent of PC.The cost of Golden Hand Shake Scheme (GHS)
for permanent workers and Voluntary Separation Scheme (VSS) for the executives
will be shared equally between the new buyer and the Privatisation Commission.
The bidder shall bid on the basis of audited accounts of June 2006 and may
also factor the latest un-audited accounts available prior to the bidding. The
loan from Government of Pakistan amounting to Rs. 1,002 million will be
written back in the books of HEC and tax impact after adjustment brought
forward losses of Rs. 376.708 million shall be borne by the Privatisation
Commission. All terms and conditions relating to privatisation of HEC shall be
communicated to all bidders from time to time prior to the bid date.
Information Memorandum, Bid Documents and Time Frame for the Pre-Bid
conference and bidding date will be provided to Pre-qualified parties only.
The Government of Pakistan, Privatisation Commission reserves the right not to
respond to any request for preliminary or other information. Documentation
accompanying and comprising an Expression of Interest as provided by any
investor or consortium shall not be reclaimable or returned. This offer is not
intended to be, and should not be construed as: (a) an offer or invitation to
acquire any securities or assets of HEC; and (b) any representation or
warranty, express or implied, with respect to any statement made herein.