ISLAMABAD, Feb 11: The ministry of privatization on Saturday decided to hold bidding for the sell-off of Pak American Fertilizers Limited (PAFL) on Feb 27.

The decision was taken in the pre-bid meeting headed by Secretary Ministry of Privatization and Investment M. Tahsin Khan Iqbal.

An official announcement said that during the meeting the queries of the prospective bidders were also responded by the representatives of the respective ministries and departments and the bidders were informed regarding the bidding process, which will be held in presence of the media.

Eight parties, which have completed the due-diligence of the transaction, participated in the pre-bid meeting. The parties were: i) Associated Group, Lahore ii) Bestway Cement Ltd, Islamabad iii) Dawood Hercules Chemicals Ltd, Lahore iv) Ibrahim Fibres Ltd, Faisalabad v) Jahangir Siddiqui Capital Markets Ltd, Karachi, vi) Kohinoor Textile Mills Ltd & Associates, Lahore vii) Nishat (Chunian) Ltd, Lahore and viii) Pak Arab Fertilizers (Pvt) Ltd, Multan.

Pak American Fertilizers Limited (PAFL) is located at Iskanderabad (Daudkhel), District Mianwali and produces 1,050 tons of urea per day. The company is a subsidiary of National Fertilizer Corporation (NFC).

Japan Bank of International Cooperation (JBIC) provided loan for setting up the fertilizer plant. The plant was commissioned in 1999. PAFL was the first fertilizer manufacturing concern in the country which was established in 1959.

The old plant was closed down in 1997 and a new Ammonia/Urea Plant commenced commercial production in 1999. The new plant is designed to produce 600 tons per day ammonia and 1,050 tons per day urea using natural gas as feed and fuel.

Both plants have been designed by Toyo Engineering Japan. Ammonia plant is under license from Kellogg International, USA, while urea plant is TEC’s owned. The plants are latest in design and most modern. The company possesses over 11,481 kanals of land, comprising 6,432 for factory, 2,818 for housing colony and 2,230 for experimental farm.