KARACHI, March 20: The sale of 35 prime assets in Sindh, under the privatization programme, is likely to fetch around Rs1 billion in the first phase.

This was stated by the Secretary, Sindh Privatization Commission (SPC), Lal Din Kashmiri in a brief chat with Dawn after a presentation given by the SPC chairman, Syed Nasir Ali Shah Bukhari to the members of the Karachi Chamber of Commerce and Industry (KCCI) on Wednesday.

He said the SPC has invited sealed bids offers and the last date for submission of bids is March 30, 2002.

The assets which are being privatized are: Trauma Centre, Karachi; Office Premises Civic Centre, Hyderabad; Residential Bungalow, New Wahdat Colony, Hyderabad; Residential Quarter, Hyderabad; Printing Press Building, Hyderabad; Sindh Government Press, Khairpur; open plot, Mir Pur Mathelo; residential pilot forest department, Hyderabad; commercial plot 37 sq yards, Forest Department, Hyderabad; new packed/imported machinery, Karachi and around 15 properties of Sindh Road Transport Corporation.

“If all goes well, sale of these assets will definitely earn Rs1 billion,” he said. The decision regarding handing over of the assets to the successful bidders will be taken within a fortnight.

He said each bidder will have to deposit two per cent of the total offer. After bid’s approval, the bidder will be required to pay the second instalment, which would be 50 per cent of occupancy value, while the balance will be payable within two months.

Lal Din said that Karachi Water and Sewerage Board (KWSB) is also on the agenda of privatization in the next phase.

Giving further details, Nasir Ali Shah Bukhari said that the value of KWSB is estimated at $600 million and is considered the biggest asset of Sindh.

Currently, there are many negative factors shrouding the KWSB and one of them is water leakage of over $40 million per annum. If a successful buyer takes over the KWSB, the total expenditure to overcome leakage would go up to $50 million. He dispelled the impression that the water rates will go up if the KWSB is privatized.

He said in the KWSB, only its treatment and disposable plants will be privatized and the water and sewerage systems will not be privatized as it is being looked after by the local government.

He said the privatization process had been marred by the concept of hostility of stakeholders, past bad experience of bidders, investors and sellers and unfavourable environment.

“Situation is now improving to some extent keeping in view the economic indicators that are showing some positive signs,” he said.

He assured the KCCI members that the privatization process will continue after October.