January 30, 2008	Wednesday	Muharram 20, 1429

ISLAMABAD, Jan 29: The Privatisation Commission board on Tuesday decided to launch the process for the listing of Kot Addu Power Company (Kapco) shares in the international capital market through Global Depository Receipt (GDR).

“We hope to close the transaction by May this year,” Secretary Privatisation Commission Ahmad Jawad told Dawn after the meeting.

Likewise, he pointed out, that a decision has also been taken to complete the GDRs of both the Habib Bank Limited (HBL) and the National Bank of Pakistan (NBP) by April and June this year, respectively.

The request for the proposal (RFP) had been sent to the financial advisers to undertake the assignment.

Taking about Kapco he said that investors were taking a lot of interest in the energy sector and that’s why a decision has been taken to off-load its shares in the international capital market.

He was sure that despite overall world recession and slow economic activities, the Kapco will fetch a good price as being one of the vital entities of the energy sector.

The services of top ten international banks and companies had been acquired by the Pakistan government to accelerate the process of privatisation in the country.

Responding to a question he said that the ministry of finance had fixed Rs75 billion target for privatisation proceeds in 2007-08 which was expected to eventually reach Rs100 billion. “We have already received privatisation proceeds worth $440 million (Rs27 billion) and we may even cross the figure of Rs100 billion by June 30, 2008,” Mr Jawad said.

He said that 3 to 4 major transactions will be completed during the current financial year.Sources said that Federal Minister for Privatisation and Investment Shahzada Alam Monnoo, who chaired the PC Board meeting, directed the officials of the commission to speed up the process without taking into account that the caretaker government was there for a limited period of time. “You have the mandate of the Council of Common Interest (CCI) and the Cabinet Committee on Privatisation (CCoP), therefore, you should not wait for the next government to accelerate the process,” a source said quoting the minister.

“We have to privatise the public sector entities to enhance quality and production in a competitive manner,” he said.

The PC board approved the recommendations of the pre-qualification committee for the pre-qualification of 32 parties for 26 motels and restaurants of Pakistan Tourism Development Corporation (PTDC) for conducting the due diligence, which will be followed by the pre-bid meeting for better understanding of the transaction and the process.

The board also constituted a transaction committee to formulate its recommendations on the basis of Statement of Qualification (SoQ) received from nine parties for their pre-qualification for acquiring minimum of 90 per cent shares of Hazara Phosphate Fertilisers (Private) Limited (HPFL) together with management control on ‘as ‘is, where is basis’.

It was informed that a number of requests were being received from potential parties for taking part in the privatisation process of Jamshoro Power Company (JPC), a power-generating unit of Wapda, for which five SoQs have already been received.

The meeting decided to maximise the competition and the proceeds by inviting fresh Expressions of Interest (EoIs).

The board discussed the privatisation process of National Power

Construction Company (NPCC) and decided that the pre-qualification committee would further review and submit its recommendations in the next board meeting with regard to three parties from whom further documents were required.

The financial Adviser for the SME Bank Transaction (BMA Capital) made a presentation on SME Bank’s privatisation methodology and the way forward.