CCOP Approves Reference Price for Privatisation of NPCC

Islamabad, June 02, 2009

The Cabinet Committee on Privatisation (CCOP), which met under the Chairmanship of the Advisor to PM on Finance and Economic Affairs, Mr. Shaukat Tarin at the Prime Minister’s Secretariat here today, approved the Reference Price for privatisation of the National Power Construction Company (Private) Limited (NPCC).

It may be noted that NPCC is currently rated amongst top contractors in its specialty and reputed for skillful and professional management of contractors. The company has all along been profit making organization besides providing employment to large number of Pakistani engineers, technicians, and skilled /semi skilled workforce. NPCC’s main area of operation during the last three decades had been Middle East with concentration in Kingdom of Saudi Arabia.

The CCOP also recommended the federal government to negotiate with the provincial governments of Punjab and Sindh for resolution of the issue of transfer of PTCL properties to the company (PTCL).

It may be added that PTCL was privatised through sale of 26 percent shares for US $ 2,598,960,000,00 to be paid in nine equal installments, payable on biannual basis. As per Share Purchase Agreement (SPA) GoP is required to provide clear titles of 100 percent of PTCL properties (3384 in number) by January 12, 2008. A balance of 161 non-transferred properties (including 71 in Punjab and 45 in Sindh) remains outstanding.