Tag: Privatisation Commission

Islamabad, April 04, 2020 (PPI-OT): Despite COVID-19 situation, Privatisation Commission (PC) team, under the leadership of Federal Minister /Chairman Mohammedmian Soomro continue to keep foreign investors engaged in the Privatisation plan of the Government of Pakistan. Federal Minister Mohammedmian Soomro along with the Advisor to PM on Energy, Mr. Nadeem Baber held a series of video-conferences/meetings during the current week with the pre-qualified investment parties for the privatization of two power plants (Haveli Bahadursha and Balloki) of National Power Plant Management Company Limited (NPPMCL). Mr. Nadeem Baber replied to questions and queries raised by the investors. Chairman NEPRA also joined the discussion.

 

The privatization of two power plants is being carried out on priority basis. Under the supervision of the Federal Minister, the impending legal and technical issues have been sorted out amicably with the provincial governments and line Ministries. These include True-up tariff by NEPRA, amendment in land conversion rules and water use agreement for power plants by Government of Punjab and alignment of gas supply and power purchase agreements by Power Division and Petroleum Division in the context of RLNG agreements, prevalent till 2025. The relevant information has been uploaded on Virtual Data Room (VDR) for due diligence by the Pre-qualified bidders. Presently investors’ due diligence is in progress, but physical site visits of the pre-qualified bidders could not be scheduled due to the current national and international lock-down situation and travel restrictions.

 

In the wake of Corona Pandemic, the pre-qualified bidders have asked for extension in the timelines. Federal Minister has indicated to review/reconsider the timelines based on facts/situational analysis and rapidly changing national and international market scenarios.

 

Federal Minister also reiterated that the revival of PSMC is one of the most important objectives of the Ministry of Privatization. Financial Advisors’ Services Agreement (FASA) was signed in January this year with Pak-China Investment Company and Bank of China (BoC). The progress towards that end started on steady pace. In spite of travel advisories and other issues, and at the insistence of PC, Sinosteel team from China has recently been on visit to Pakistan.

 

All matters regarding legal, financial and land issues of PSM have been discussed with concerned stakeholders. The first draft of HR, financial and tax due diligence has been shared by the financial advisors on April 1, 2020. The draft DDs on HR Financial and Tax have been shared with Ministry of Industries and Production and Management of Pakistan Steel Mills on 2nd April, 2020 for their review and inputs before placing the DDs and proposed transaction structures for approval of competent forum.

 

Likewise SME Bank Privatisation is also at conclusion stage. Prequalification of Five investors who have submitted their SOQs is likely to be completed by next week and Buyers side due diligence to be completed by end of May provided current pandemic situation improves to some extent. Furthermore, transaction structures of Services International Hotel and divestment of Pak re insurance shares have been finalized. However, strategy is being devised in consultation with Financial Advisors (FAs) to market both these transactions in due course of time depending on the prevailing market conditions and economic situation.

 

For more information, contact:

Privatisation Commission

5-A EAC Building Constitution Avenue,

Islamabad- Pakistan

Tel: +9251 920 5146 -47

Fax: +9251 920 3076

Email: info@privatisation.gov.pk

Islamabad, March 27, 2020 (PPI-OT): Despite dire situation of lockdowns and non connectivity, Privatisation program is moving ahead at consistent pace by quickly shifting to video conferences and completion of pre-requisites of due diligence by national and international financial advisors(FAs)as per the original timelines, so far.

 

By the consistent efforts of Ministry of Privatisation Commission team and supervision of Minister/ Chairman PC, Muhammad Mian Soomro, all out efforts have been made to complete all the pre-bidding formalities. All relevant partner organizations have been requested to complete the due processes despite the problems being faced in the availability of relevant officials.

 

An important meeting of NEPRA was held today on 27th March, under the Chairmanship of Mr. Tauseef Ahmed, Chairman NEPRA, regarding tariff determination for RLNG plants which is likely to be announced early next week. A series of video conferences have also been planned with the prospective investors of RLNG plants in the coming week despite difficulties in accessing all stakeholders.

 

However, as the prospective investors and their counterpart IFIs have indicated concerns in the wake of downfall in international markets, the bidding timelines have become unpredictable. Prospective investors have requested extension in timelines which are being analyzed and considered in view of the rapidly changing situation.

 

Most of our transactions are at an advanced stage and can be completed on time provided the national and international markets quickly recover from current health crisis situation and overcome Corona related obstacles. The sale of 28 properties for final auction has also been delayed due to government restrictions on gatherings and non-availability of auction houses and related facilities.

 

For more information, contact:

Privatisation Commission

5-A EAC Building Constitution Avenue,

Islamabad- Pakistan

Tel: +9251 920 5146 -47

Fax: +9251 920 3076

Email: info@privatisation.gov.pk

Islamabad, January 15, 2020 (PPI-OT): The People’s Republic of China’s ambassador to Pakistan Mr. H.E Yao Jing Called on Federal Minister for Privatisation Mohammad Mian Soomro here today at Ministry of Privatisation. The minister said that the continued exchange and corporation between Pakistan and China in terms of politics, energy, economy, diplomacy and others are in the fundamental interests of the two nations and are conducive to regional peace and development. The minister highlighted the strong potential investment in Pakistan to attract investors especially in Pakistan’s Privatisation Program.

The minister and ambassador agreed to enhance matters relating to Pak China Friendship, investment of Chinese companies in various matters of mutual interest. The ambassador said that China attaches high importance to its relations with Pakistan. The Secretary Ministry of Privatisation Mr. Rizwan Malik was also present in the meeting. At the end of meeting the Federal Minister Mohammedmian Soomro thanks the ambassador for his efforts to encourage more investment in Pakistan and also gifted him traditional Sindhi Ajrak and cap.

For more information, contact:
Privatisation Commission
5-A EAC Building Constitution Avenue,
Islamabad- Pakistan
Tel: +9251 920 5146 -47
Fax: +9251 920 3076
Email: info@privatisation.gov.pk

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.

For more information, contact:
Privatisation Commission
5-A EAC Building Constitution Avenue,
Islamabad- Pakistan
Tel: +9251 920 5146 -47
Fax: +9251 920 3076
Email: info@privatisation.gov.pk

Islamabad, February 14, 2019 (PPI-OT): Finance Minister Asad Umar here on Wednesday chaired meeting of the Cabinet Committee on Privatization (CCoP). Minister for Privatization Muhammad Mian Soomro was also present on the occasion. Secretary Privatization Division shared with the meeting progress on the Active Privatization List which includes National Power Parks Management Company, (NPPMCL), SME Bank, divestment of Govt’s residual shares in Mari Petroleum Company, Services International Hotel, Lakhra Coal Development Company, Jinnah Convention Centre, Islamabad and the First Women Bank Ltd.

The Committee was informed that progress of various degrees had been achieved on the PSEs included in this list. The CCoP was also briefed on follow up action on decisions taken in the meeting held on 31st October 2018. The CCoP was informed that in pursuance of the decision 15 PSEs including PIA have already been delisted from the Privatization Programme. Senior officials of PIA apprised the Committee regarding the current status and future prospects of Roosevelt Hotel, New York.

The Committee directed that formal proposal in this regard may be finalized by June 2019. The Commerce Division was also directed to fast track study / evaluation regarding Insurance and Reinsurance sector,(SLIC, NICL and Pak Re-Insurance Company) along with the need for Regulatory Framework improvements, which should precede process of privatization. Commerce Division would present its report in this regard to the CCoP by 31st of March. The Petroleum Division was directed to expedite the work on regulatory framework for creation of competitive market place for gas sector.

For more information, contact:
Privatisation Commission
5-A EAC Building Constitution Avenue,
Islamabad- Pakistan
Tel: +9251 920 5146 -47
Fax: +9251 920 3076
Email: info@privatisation.gov.pk

Islamabad, December 27, 2018 (PPI-OT): The meeting of the Cabinet Committee on Privatization (CCOP) was held here on Wednesday. Finance Minister Asad Umar Chaired the meeting. Secretary Privatization Division gave the meeting an update on privatization process of public sector entities on the active privatization list including RLNG Power Plants (Balloki and Haveli Bahadurshah) under National Power Parks Management Company (NPPMCL), Lakhra Coal Mines and Services International Hotel.

Matters relating to divestment of Govt’s residual shares in Mari Petroleum Company also came under discussion. With a view to facilitating simultaneous and smooth privatization of both RLNG plants, the CCOP gave its nod of approval for privatization of the NPPMCL. CCOP also accorded go ahead to divest residual govt. shares of 18.39 % in Mari Petroleum Company Ltd. In case of Lakhra Coal Mines, the CCOP directed that since the matter is subjudice its privatization process may be pursued only after decision by the Supreme Court. The CCOP also noted the updated position on KE as shared by the Secretary Privatization

For more information, contact:
Privatisation Commission
5-A EAC Building Constitution Avenue,
Islamabad- Pakistan
Tel: +9251 920 5146 -47
Fax: +9251 920 3076
Email: info@privatisation.gov.pk

Islamabad, September 12, 2018 (PPI-OT): The employees of Privatisation Commission has very proudly joined hands with the Prime Minister of Pakistan’s initiative and deposited two days salary in the Dam’s Fund for construction of Diamir Bhasha Dam. We understand that this initiative has given an opportunity to the nation to prove their strength, will and valour to fulfill national responsibilities.

Privatisation Commission endorses the government’s initiative by stating that self-reliance is the best policy and requests all sections of the society to translate this national project into reality. Privatisation Commission extends its gratitude to the Honourable Chief Justice of Pakistan and Prime Minister of Pakistan for leading the nation for this effort and assure its support for this cause in future as well.

For more information, contact:
Privatisation Commission
5-A EAC Building Constitution Avenue,
Islamabad- Pakistan
Tel: +9251 920 5146 -47
Fax: +9251 920 3076
Email: info@privatisation.gov.pk