ISLAMABAD: Five investors have prequalified for privatisation of the Heavy Electrical Complex (HEC) and the transaction is expected to be completed by September this year, the Privatisation Commission said on Wednesday while reviewing the current status of the government’s divestment programme.

Chairing the review meeting, Minister for Privatisation Muhammadmian Soomro said the focus is now on the timely completion of the transactions which were delayed due to the Covid-19 pandemic.

He further said the government is committed to compressing the timelines for the transactions’ completion of the identified entities and putting an all-out effort to improve the efficiency of these public sector entities on the one hand and reduce the fiscal burden on the economy on the other.

The salient features of the transaction structure of Pakistan Steel Mills (PSM) will be discussed at the upcoming meeting of the privatisation board. In order to reach at the eventuality, certain corporate actions are required on the part of the stakeholders, which are being pursued by the Ministry of Privatisation.

Soomro directs swift resolution of Nandipur, Guddu power plants transaction issues

The transaction structure of PSM has already been approved, under which a subsidiary will be formed for transferring the identified assets and subsequent sale of majority shares of the newly formed subsidiary without transferring the ownership.

The privatisation of the National Power Parks Management Company Limited (NPPMCL), which is the major prospective transaction of the whole privatisation plan, was also discussed during the meeting. Most issues associated with this complex transaction have been resolved, including land conversion, draft scheme for the demerger of NPPMCL into two companies and water usage, and those remaining are being actively pursued. A sub-committee to that effect had also been constituted.

During the meeting, Mr Soomro said: “The NPPMCL is very important and we are consistently following the tracks which would lead us to the early completion of this transaction. The bidders who were shortlisted last year are again engaged to complete the buyers’ side due diligence after site visits.”

For matters relating to the transactions of Nandipur Power Plant and Guddu Power Plant, concerned ministries have been approached and Mr Soomro directed them to resolve the issues on a fast-track basis.

The transaction of Jinnah Convention Centre (JCC) is expected to be completed in December this year, while matters relating to Small & Medium Enterprises, First Women Bank Ltd (FWBL) and House Building Finance Corporation (HBFCL) have been taken up with the State Bank of Pakistan and other relevant forums. The board for FWBL has been nominated which will update the financials and audit reports to proceed with the privatisation process.

Published in Dawn, July 8th, 2021