ISLAMABAD: The Cabinet Committee on Privatisation (CCoP) approved on Wednesday a hybrid option for the privatisation of RLNG-based 1,223MW Balloki and 1,230MW Haveli Bahadur power plants being managed by the National Power Parks Management Company (NPPMCL).
Chairing the committee meeting, Finance Adviser Dr Abdul Hafeez Shaikh directed the Ministry of Privatisation to complete the bidding process by the end of December.
Under the approved plan, if the highest bidder for both plants remains the same, the bidder would be offered to buy the combined entity and in case the highest bidder for both plants is different, the demerger would become a ‘Condition Precedent’ (CP) to ‘Transaction Closing’.
There would be a divestment of 100 per cent equity of stake of NPPMCL in respect of both power plants, the committee decided.
It also approved inclusion of State Life Insurance Company, Islamabad Electric Supply Company (Iesco) and part of Lahore Electric Supply Company in ‘active list’ of privatisation programme.
The meeting removed Telephone Industries of Pakistan (TIP) from the privatisation programme in view of the Ministry of Information Technology and Telecommunication’s plan to revive it through a joint venture.
TIP having total area of 150,000 square meters was established in Haripur Hazara in 1952 to meet the requirements of telecommunication switching equipment.
It is producing a variety of other products like containers shells, single phase energy meters, fire alarm equipment and drop wire.
The CCoP was also briefed on 10 public sector entities (PSEs) approved for divestment in July, and the subsequent process and placement of advertisements for hiring of financial advisers for the selected PSEs.
These include 747MW Guddu Power Plant of the Central Power Generation Company Ltd-CGPL (Genco-II); 425MW Nandipur Power Plant of the Northern Power Generation Company Ltd –NPGCL (Genco-III); House Building Finance Corporation; Oil and Gas Development Company Ltd; Pakistan Petroleum Ltd; First Women Bank Ltd; Heavy Electrical Complex; Pakistan Engineering Company; Sindh Engineering Ltd; and Pakistan Re-Insurance Co Ltd.
Published in Dawn, September 19th, 2019
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