ISLAMABAD, Nov 14: The Privatization Commission on Monday completed Rs20.24 billion sale of the 73 per cent shares of the Karachi Electric Supply Company (KESC) to Saudi-led consortium in one of the country’s troubled privatization deals.

Privatization and Investment Minister Abdul Hafeez Sheikh and the executives of the Hasan Associates consortium hailed the sale as a landmark deal in the country’s privatization process in speeches at a ceremony where bid documents were signed and a letter of acceptance was issued.

“I think it will be a winning combination,” Mr Sheikh said about the deal which followed a process spanning several months after the original highest bidder, Kanooz Al-Watan group of Saudi Arabia, had pulled out.

Hasan Associates, which includes Al-Jumaih group of Saudi Arabia, had made the second highest offer in the February 5 bidding but later agreed to match the Kanooz Al-Watan offer.

A Privatisation Commission statement said a recent meeting of the Federal Cabinet had accepted Hasan Associates’ improved offer of Rs20.24 billion.

The commission said a letter of acceptance was issued to the consortium after receiving the first instalment of $100 million. The group would deposit the remaining amount before the end of November to take control of the company which supplies electricity to Karachi, it added.

Mr Sheikh said the KESC deal was another success for the government’s privatization process in what he called a complex transaction in which the commission received support from top level of the government, including President Pervez Musharraf and Prime Minister Shaukat Aziz.

He said Al-Jumaih was a reputed name and its arrival in Pakistan was a good sign for the country’s privatization programme.

He paid tributes to all the previous governments that he said had worked for this transaction and “tried their best in the past 12 to 15 years” to bring good management and technology and give Karachi a better service.

Hasan Associates chairman Farooq Hasan said his group’s Saudi partners should not be considered foreigners because of the special relationship between Pakistan and Saudi Arabia and voiced his hope that the deal would be a success story.

Al-Jumaih managing director Abdul Aziz Al-Jumaih said the KESC deal would further strengthen Pakistan-Saudi relationship and encourage foreign investment in Pakistan. He promised to inject more funds in KESC to improve the corporation’s performance.