ISLAMABAD, July 21: The government has decided to invite fresh expression of interest (EoI) within next 15 days to privatize Karachi Electric Supply Corporation (KESC) by December 2003.

Official sources told Dawn here on Monday that a Saudi investment company — Kunnoz Group — had expressed keen interest in acquiring majority shares in KESC and managing it through some British power operators.

The decision to invite fresh EoI was reportedly taken after the Kunnoz Group established contacts with senior authorities of the Privatization Commission and expressed its keen interest in acquiring majority shares in KESC.

“We need to quicken the process of privatization of KESC to lighten the burden on the budget,” said an official.

He said financial adviser of KESC — Pricewaterhouse Cooper — was also currently in contact with a European group interested in the KESC privatization. However, the official did not disclose the name of the group.

Earlier, AES power company and ABB company had submitted their EoIs for taking part in the KESC bidding, but after the 9/11 incident the power entity seemed to have lost its attractiveness for local and foreign investors.

“We feel that now is the time to re-launch the KESC transaction to get a better price,” another official said.

“I believe the Saudi group is serious and it also looks credible,” said Marshuk Ali Shah, ADB country director for Pakistan. He expressed the hope that the Saudi group would succeed in its bid to buy KESC.

He told Dawn that time had come when the government must accelerate the process of KESC privatization.

“The government needs to spend more on poverty alleviation and not on sinking utilities like KESC and Wapda,” he believed.

The government has provided Rs52 billion subsidy to both Wapda and KESC during 2003-04 against Rs74 billion of last year.

Meanwhile, it was learnt that Privatization Commission Secretary Ahmad Waqar will leave for New York on July 27 to pre-qualify the bidders for Roosevelt Hotel. Maj-Gen Ashraf Chaudhry will also accompany the Privatization Commission secretary.