ISLAMABAD, Feb 11: A special meeting of the Cabinet Committee on Privatisation (CCoP) will be held here on Friday (Feb 15) to discuss and finalise dates for disinvesting a number of state sector entities including Jamshoro Power Company.Informed sources told Dawn on Monday that a decision had been taken to go for the “re-bidding” of the Jamshoro Power Company as the tariff issues relating to the transaction had been determined.
Earlier, there were only two companies participated in the bidding, but the government delayed the transaction for want of more local and foreign companies to dispose of the power company. “Now the transaction is likely to be completed by June this year,” a source said.
The CCoP meeting will also discuss Global Depository Receipt (GDR) of Kot Addu Power Company (Kapco). The Privatisation Commission Board had earlier decided to launch the process for the listing of Kapco shares in the international capital market.
Caretaker Prime Minister Muhammedmian Soomro will preside over the meeting.
Informed sources said that the Privatisation Commission wanted to finalise the Kapco GDR by May this year.
The caretaker prime minister has been informed by the Privatisation Commission that it is the right time to go for Kapco GDR considering the interest of the international investors in the power sector of Pakistan.
The PC officials believe that despite global recession and slow economic activities, Kapco will fetch a good price.
The services of top 10 international banks and companies had been acquired by Pakistan government to accelerate the process of privatisation.
Sources said that the meeting will give final go ahead for the GDRs of both the Habib Bank Limited (HBL) and the National Bank of Pakistan (NBP) by April and June this year respectively.
The Request for Proposal (RFP) had been sent to the financial advisers to undertake the assignment.
Sources said that four major transactions would be completed during the current financial year.
The meeting would also be updated about the overall privatisation process and the difficulties due to the prevailing security situation.
Issue concerning the privatisation of Heavy Electrical Complex (HEC), National Power Company, Pakistan Tourism Development Corporation (PTDC), Hazara Phosphate and Fertiliser Company will also come up for discussion during the meeting.
According to an official of the PC, the ministry of finance had kept Rs75 billion target for privatization proceeds in 2007-08 which, he added, was expected to eventually reach Rs100 billion. “We have already received privatisation proceeds worth $440 million (Rs27bn) and we may even cross the Rs100bn-mark by June 30, 2008,” a source said.