The Privatization Commission (PC) Board will give its approval to the signing of contract with Financial Advisor (FA) on privatization of two RLNG Power Plants and appointment of FA for SME Bank Limited in a meeting scheduled to be held today (Tuesday). Sources said the Board will give its approval to setting up a contract negotiation committee for negotiating Financial Advisory Services Agreement (FASA) with the consortium of Credit Suisse (CS), Elixir Securities (ES) & Ernst & Ford Rhodes (EY), Akhund Forbes, Latham & Watkins & Lummus for transaction of National Power Parks Management Company (Private) Limited (NPPMCL).
The NPPMCL owns and operates two RLNG-based combined cycle power plants namely 1230 MW CCPP Haveli Bahdur Shah and 1223 MW CCPP Balloki. The Board will also deliberate on three short-listed bidders for FA for privatization of SME Bank Limited and constitute a transaction committee and contract negotiation committee for the transaction.
Privatization Division issued the Request for Proposal (RFP) to the short-listed interested parties on February 12, 2019 for privatization of SME Bank. On March 11, the following consortiums submitted their technical and financial proposals: (i) MCB Bank Limited, Deloittee and Haidermota BNR; (ii) AKD Securities Limited, RIAA Barker Gillette and Grant Thornton Consulting Pvt Limited; and (iii) Elixir Securities Pakistan Pvt, Bridge Factor Pvt, KPMG Taseer Hadi & Co. and Mohsin Tayebaley & Co. The Board will also look into divestment of government's residual shareholding in Mari Petroleum Company Limited (MPCL) and decide the share price of the company. The PC Board's determined share price will be submitted to Cabinet Committee on Privatization (CCoP) for final approval.
Sources said that in January 2019, the government served a transfer notice (intention to sell its shares) to Fauji Foundation and Oil and Gas Development Company Limited (OGDCL), which have the first right of refusal, in compliance with Participation and Shareholders Agreement signed by and between Fauji Foundation, OGDCL and government. The government is required to issue a notice of its intention to sell, assign or otherwise transfer the GoP Shareholding to other shareholders of the Company.
The Cabinet Committee on Privatization considered the summary on 20 December 2018 and directed the Privatization Division to proceed further with the divestment of GoP's residual shares i.e. approx. 18.39 percent in the company. The Board will also consider delisting of House Building Finance Corporation (HBFC) from privatization programme. Industrial units will be included in the active programme of privatization.
The PC Board will also give its approval to hiring of valuers from open market for the sale of unutilized properties/assets owned by the federal government. In pursuance of subsequent Cabinet's decision on February 28, 2019, the Privatization Division received details of at least three unutilized properties/assets of Ministries/Divisions, free from all encumbrances. The Board will consider an option of hiring of NESPAK on single source basis.
The Privatization Board will further consider amendment in Privatization Commission (Valuation of Property) Rules 2007 and adoption of the Government Servants (Efficiency and Discipline) Rules 1973 in Privatization Commission. Standardization of FASA and request for proposal documents and technical evaluation criteria will also come under discussion of PC Board, sources said.
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