KARACHI, April 20: The Saudi investors’ group Kanooz al Watan is coming to Pakistan either at the end of this month or early May to take over the management control of Karachi Electric Supply Corporation (KESC) after their fears and misconceptions on Karachi’s law and order have been totally dispelled.

Privatization Commission Secretary Tehseen Iqbal, who returned from Saudi Arabia only a day before and had meetings with the officials of Kanooz al Watan, blamed ‘few of the disgruntled elements’ for misinforming and misguiding the Saudi group on law and order situation in the

city.

“Now that all these fears and misgivings about the city have been dispelled, the group is not only coming, but has also appointed a chief executive -— a German who has long experience of managing utilities in Europe,” the secretary disclosed.

The group, he said, planned to set up a 100-megawatt power plant in the city, besides putting money into KESC to improve its services. Mr Iqbal said the Saudi group was also interested in the privatization of other utilities and enterprises in Pakistan.

Kanooz al Watan offered the highest bid of Rs20.24 billion for the acquisition of 73 per cent shares of KESC in an open auction held on February 4, 2005. The Cabinet Committee on Privatization (CCoP) approved the bid on February 6. But the letter of acceptance (LoA) was issued on February 20, almost two weeks after the CCoP approved the deal. Since then it is now two months the group did not deposit the bid money. This led to speculations and rumours in the market as according to the bid rules, the money offered by the successful bidder has to be deposited within two weeks of the auction.

Mr Iqbal said that all the concerns of the group about the management of KESC had been removed. The group will draw up its own system of services and billing to the satisfaction of consumers. It will depend on the group to retain army and rangers for backup support.