Privatization Commission (PC) has shortlisted 12 potential buyers for due diligence for sale of two Re-gasified liquefied natural gas (RLNG) fired power plants and financial advisors (FAs) for divestment of shares of Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL).
Twelve potential buyers short listed in the transaction committee meeting of PC are: Jera (Japan), Marubeni (Japan), Mitsui & Co (Japan), Asma Capital (Bahrain), Nebras Power (Qatar), Qatar Investment Authority (Qatar), the Fauji Foundation Consortium (Pakistan), Edra (Malaysia), GPSC (Thailand), Contour Global (UK) and KAPCO and Atlas Pakistan. The pre-qualified parties will commence due diligence of the power plants promptly with a view to achieving the earliest possible date for bidding and closing of the transaction timely.
In the privatization of two RLNG power plants, as many as 23 investors from all around the world, including entities that have never invested in Pakistan before, submitted their statements of qualifications (SoQs).
This shows high confidence by international business community, including Europe, Japan, South East Asia, Middle East, in Pakistan as an investment hub, said a statement issued by PC.
Out of 23 parties which submitted EoIs, 12 parties submitted their SOQs by the deadline. Some of the parties who submitted their SOQs also expressed their interest to form consortia with some of the other parties that had submitted Expression of Interest (EoIs).
The government had invited EoIs in early November 2019 and set the deadline of December 23. However, before the deadline, only one foreign firm submitted the statement of qualification, prompting the government to extend the date to January 17, 2020.
National Power Parks Management Company Limited (NPPMCL) owns the two power plants located at Balloki and Haveli Bahadur Shah with combined generation capacity of 2,453 megawatts. The government wants to sell NPPMCL with a hope of fetching a minimum of Rs 300 billion in non-tax revenue.
Federal Minister for Privatization and Chairman Privatization Commission Mohammedmian Soomro chaired Transaction Committee Meeting followed by PC Board meeting held here.
The PC Board also approved financial advisors (FAs) for divestment of shares of Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL). It also recommended transaction structure on sale of unproductive land owned by the federal government entities.
A consortium of Credit Suisse, Arif Habib Limited, AKD securities, CITI, HBL & Next Capital was selected as FA for OGDCL, whereas, Credit Suisse, Arif Habib and Top line securities was elected as FA for Pakistan Petroleum Limited (PPL).
The federal government is anticipating generating Rs 88 billion from secondary public offering (SPO) of two stated-owned listed oil and gas companies, OGDCL and PPL by the end of current fiscal year 2019-20. The Privatization Division has set a target to divest 7 percent government shares in the OGDCL and 10 percent in the PPL offered to strategic partners with one seat in the board of directors of these two mega oil and gas companies.
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