ISLAMABAD, May 7: The sale of 51 per cent interest along with management control of Pakistan State Oil (PSO) has been delayed until next month on the request of bidders, Minister for privatisation and Investment Zahid Hamid said on Monday.

The Privatisation Commission was earlier scheduled to hold bidding for the transaction on May 19 but Attock Group, one of the interested parties, challenged in the Sindh High Court the commission’s decision for dropping it in the pre-qualification stage.

Mr Hamid told Dawn that the bidding - that had been tentatively scheduled for May 19 - was unlikely to achieve the desired results because the interested parties had sought some time as they were engaged in firming up their consortia. He, however, said that the bidding for the country’s largest oil supplier would definitely be held in June and transaction completed within this fiscal year ending June 30.

The Privatisation Commission had earlier postponed the bidding fixed for May 5. Earlier this month, one of the prequalified bidders - Kohinoor Group of Tariq Saigol - requested the commission to allow British Petroleum of UK to be part of its consortium as technical operator.

The request is yet to be formally accepted but the privatisation minister hoped the BP would become part of the consortium.

The government short-listed seven companies to bid for the majority shares and management control in the PSO. Other parties include Al-Jamaih Holding Company Consortium including Noor Investment Company and Fauji Foundation, Dabbagh Holding Company Limited Consortium including Savola Group and Goldman Sachs, Bakri Energy Company Consortium with Salsal Petroleum, MCB Bank Limited Consortium with Petronas Int. Ltd, TransAsia Gas Int. and Vitol S.A.

Meanwhile, a statement issued by the privatisation commission said it has signed financial advisory services (FAS) agreement for the privatisation of SME Bank BMA Capital. It was selected from amongst six contestants. The sale of SME Bank is targeted for the current year on fast track basis, the statement said.

In a separate statement the Privatisation Commission said it has received seven Expressions of Interest (EOIs) from interested parties/ consortia of investors with commitment to build, own and run a five-star hotel on a prime piece of land on Shahrah-e-Quaid-e-Azam, Lahore, presently titled "Services International Hotel (SIH)" with an area of fifteen (15) kanals, three marlas and 113 square feet (6,346.46 square meter approximately).

The parties include Associated Group of Lahore, The City Group of Lahore, Hashwani Hotels Ltd of Islamabad, Rupali Polyester Limited of Lahore, Abraaj Capital Limited of Dubai, Al-Sabaiea National General Trading and Contracting Company of Kuwait and Marwat Enterprises of Lahore.

The successful bidder shall have to construct a five-star hotel in three years, including basements in accordance with the building regulations of Lahore Development Authority (LDA). The permissible height of the hotel building shall be 400 feet. A pre-bid meeting of the pre-qualified bidders will be convened soon for holding the bidding.