08 October 2004	Friday	22 Shaban 1425

ISLAMABAD, Oct 7: Federal Minister for Privatization and Investment Dr Abdul Hafeez Shaikh, chairing the pre-bid conference on privatization of Karachi Electric Supply Corporation (KESC) , said the privatization of the KESC was in the final stages and the bidding had been re-scheduled for Dec 6 with the consent of the potential bidders.

According to a hand out issued here the conference was being held to facilitate the bidders for better understanding of the transaction and the privatization process and to decide on the bid documents and bidding schedule here on Thursday.

Dr Hafeez Shaikh said that all bidders would be given level playing field to ensure transparent and satisfactory bidding. He directed the officials concerned to resolve remaining issues to the satisfaction of the bidders, which would be a landmark transaction in the power sector and set the scene for a rapid turnaround of the electric utility and for significant investment in the infrastructure of Karachi, the minister said.

The Finance Adviser for the KESC, Price water house Cooper, made a presentation on the current operations of the company and informed about the efforts undertaken during the past two years for betterment of financial and technical aspects and the steps taken to resolve most of the bidders concerns and detailed the transaction structure and the measures for improving the KESC condition.

The FA said the potential bidders had completed the initial due diligence of the transaction. The bidders had sought 3 to 4 weeks prior to bidding for the completion of bidding documents, which was agreed.

The transaction structure involves the sale of between 51pc and 74pc of the ordinary shares in the KESC, with an innovative rights issue of cumulative, redeemable, preference shares to secure Rs6bn additional funding to support the turnaround of the KESC.