ISLAMABAD: The Privatisation Commission on Tuesday said the coronavirus has impacted the pace of ongoing transactions which will only return to the desired level when the pandemic situation permits.

However, privatisation of entities already in the process has been carried out with the requisite precaution. The COVID-19 impact on transaction implementation is currently uncertain but the structure is to be formalised so it can be launched for implementation quickly after the crisis subsides, the commission said in a press release.

Conference calls were repeatedly being arranged by the PC to answer queries of investors and to furnish them with requisite information and assistance to proceed with the transaction.

The financial advisers for Pakistan Steel Mills have submitted the first draft of their due diligence report, which is subsequently being reviewed by the transaction committee of the organisation. In this regard, the first meeting was held on April 15 via video link, while the second took place on April 23, the commission noted.

The PC is approaching the potential partners for the revival of Pakistan Steel, it added.

Further, the divestment of Heavy Electrical Complex (HEC) is also underway and the revised draft of due diligence has been received on April 22. This has pushed the timeline for all succeeding deliverables by a month, the commission said.

It also says that the privatisation of power plants of Haveli Bahadar Shah and Balloki was at an advanced stage. The commission and financial advisors were working with pre-qualified parties and their advisors to complete buyer-side due diligence.

Virtual Data Room (VDR) has already been established to provide required information to investors to participate in the pre-bid meeting which will be convened soon.

Meanwhile, work on Guddu and Nandipur power plant is also in progress and due diligence by financial advisors was actively being pursued. Nandipur management team has been asked to furnish financial, technical, legal and regulatory data to the ministry for sell-side due diligence.

As far as Guddu plant is concerned, three interested parties were shortlisted to be appointed as financial advisors while technical and financial proposals have been received. Moreover, issues related to gas allocation, licence modification and release of charges have been referred to the Power Division.

Published in Dawn, April 29th, 2020