PC CLARIFIES NEWS REPORT ON ROOSEVELT HOTEL

Islamabad, September 15, 2007

Referring to a news item pertaining to the proceedings of a meeting of the Standing Committee on Defence and Defence Production held under the Chairmanship of Senator Nisar Ahmed Memon to discuss the privatisation of Roosevelt Hotel, New York, a spokesman of the Privatisation Commission has clarified the position and stated that no decision has yet been taken for sale of the Roosevelt Hotel as the Financial Adviser appointed for the purpose will determine whether sale is feasible or not.

The Privatisation Commission had explained the privatisation process in detail in the meeting stating that the privatisation of Roosevelt Hotel was being processed in consultation with all stakeholders and after final approval from the relevant forum i.e. PC Board and CCOP. It was explained that the process of appointment of Financial Adviser was carried out in the light of relevant rules and procedures in a transparent manner. It was further explained that top ten investor banks based on the rating of Global Lodging & Liesure Mergers & Acquisition (December 2006) were invited to bid for the appointment of Financial Adviser and a Financial Advisor was appointed.

He informed that it was further clarified to the Committee that at this moment only preliminary procedural work is being done by the Financial Adviser and no firm estimates are available. The Financial Advisers have yet to approach the market to determine the price of the hotel. A presentation on the process of privatisation will be made to the Committee in the next meeting, the spokesman concluded.