Hiring of Financial Adviser for the Privatisation of National Power Parks Management Company (Private) Limited
Islamabad, March 20, 2019 (PPI-OT): The CCOP on October 31, 2018 directed to initiate the process for privatisation of 1223 MW Balloki Power Plant and 1230 MW Haveli Bahadur Power Plant owned by National Power Parks Management Company (Private) Limited (NPPMCL). Later on CCOP also decided that Financial Advisors be appointed to advise the GOP on structuring the deal keeping in view the financial / legal parameters, so as to optimize the prospective return from the projects.
Pursuant to Privatisation Commission (PC) (Hiring of Financial Advisers) Regulations, 2018 (Regulations), the Chairman PC constituted an Evaluation Committee (EC)comprising Members of the PC Board, Representative from Power Division, Finance Division and PC to evaluate the Expression of Interest (EOI) and Technical and Financial proposals submitted by Interested Parties (IPs) for hiring of Financial Advisor (FA) for privatisation of NPPMCL.
Expression of Interest (EOI) for hiring of FA for privatisation of NPPMCL was advertised in national print media on January 08, 2019 and international print media on January 09, 2019. The last date for submission of EOI from the IPs was fixed February 08, 2019.
In response to the above said EOI, ten (10) IPs submitted their interest on a cut-off date February 08, 2019 as the last date for submission of EOI.
On February 11, 2019, EC short-listed the six (6) IPs namely (1) Consortium of (i) J.P. Morgan, (ii) China International Capital Corporation Ltd. and (iii) Habib Bank Limited, (2) Consortium of Citigroup Global Markets Ltd. (3) Consortium of (i) Credit Suisse and (ii) Elixir Securities (4) Consortium of (i) Lazard Freres and Co. and (ii) Next Capital (5) Consortium of Standard Chartered Bank and (6) Consortium of (i) CLSA Ltd. and (ii) Bank Alfalah Ltd. for the issuance of RFP Package.
On February 14, 2019, RFP Package was forwarded to all six (6) above mentioned short-listed IPs with the request to submit their technical and financial proposals by March 07, 2019. The following five (05) short-listed IPs submitted the technical and financial proposals:
Sr. # Short-Listed Interested Parties
1. Consortium of Citigroup Global Markets Ltd., United Bank Ltd., Deloitte, HaiderMotaBNR and Co. and Fichtner
2. Consortium of Standard Chartered Bank, CITIC CLSA Alfalah Group, AKD Securities Ltd., A.F Ferguson and Co., Poyry Switzerland Ltd. and ORR Dignam and Co.
3. Consortium of Credit Suisse, Elixir Securities, Ernst and Young Ford Rhodes, Lummus Consultants International, Akhund Forbes and Latham and Watkins
4. Consortium of J.P. Morgan, China International Capital Corporation Ltd., Habib Bank Limited, BDO, Sargent and Lundy, Vellani and Vellani and Freshfields
5. Consortium of Lazard Freres and Co., Next Capital Ltd., Carvanserai Partners, Grant Thornton, HRSG Consulting, Power Invest, NESPSK, Bridge Factor, Mohsin Tayebaly and Co. and White and Case.
On March 08, 2019, technical proposals were opened and circulated to members of the EC, while the sealed financial proposals were kept in safe custody of Secretary, PC for subsequent opening after technical evaluation. Presentations of the short-listed IPs were held on March 11 and 12, 2019. Each member of the EC examined the technical proposals and assigned the technical scores as per Regulations. The top sheet, including technical score was approved by the Chairman, PC on March 13, 2019.
On March 14, 2019 at 3:00 p.m., the financial proposals of five (5) pre-qualified IPs obtaining qualifying score of 70 points or more, were opened in a meeting chaired by Director General (Power), PC and were read out on the spot in the presence of authorized representatives of pre-qualified IPs.
On March 14, 2019, Evaluation Report and Ranking of the Pre-qualified IPs were presented to the EC for their endorsement to the PC Board. On March 20, 2019 PC Board after through deliberations approved the appointment of consortium of Credit Suisse (CS), Elixir Securities (ES) and Ernst and Young Ford Rhodes (EY), Akhund Forbes, Latham and Watkins and Lummus Consultants International as Financial Adviser for the privatisation of NPPMCL, subject to successful finalization of Financial Advisory Services Agreement.
Process included all the requirements as per PPRA Regulations and PC (Hiring of Financial Advisers) Regulations, 2018 and other relevant statuary bindings in arriving at fair transparent evaluation following the relevant provisions of regulatory frame work prescribed for the purpose including approval of Council of Common Interest in this regard.
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