ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has directed Privatisation Commission to complete bidding process of Heavy Electrical Complex (HEC), official sources told Business Recorder.
The decision was taken at a recent meeting of the ECC presided over by the Minister for Economic Affairs, Omar Ayub Khan, when a summary of Ministry of Industries and Production regarding approval of mark up to the Bank of Khyber on salaries of its employees came under discussion.
The MoI&P sought approval of Technical Supplementary Grant of Rs86.573 million to provide net salaries to employees of HEC for FY 2021-22. In case of early finalization of privatization process, the remaining amount, if any, will be surrendered and provision of funds for HEC to pay mark up of Rs10.3 million for 3rd quarter 2021 to Bank of Khyber (BoF).
The meeting was informed that the Technical Advisory Sub-Committee of the ECC deliberated on the case in its meeting held on November 22, 2021 and recommended for approval of the ECC in view of financial hardship of the employees of the HEC.
After detailed discussion, the ECC also recommended that Privatisation Division should complete the bidding process of HEC by mid of January, 2022. Power Division has been directed to reconsider its earlier decision regarding extending of validity of type testing licence issued to Heavy Electrical Complex in consultation with the Privatisation Commission and the outcome should be shared with the Cabinet Committee on Privatization after due consultation with the Ministry of ISEP and the Privatization Commission, within two weeks.
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The ECC directed that Privatisation Commission may consider request of the Power Division for granting NOC by the HEC for right of way to the PESCO for power evacuation, from 132KV Grid Station at Hattar and also for allied parallel circuits/structure.
Last week, Federal Minister for Privatisation Mohammedmian Soomro chaired a second pre-bid meeting of HEC. Federal Secretary Hassan Nasir Jamy, representatives of HEC, Ministry of Industries & Production, Financial Advisors, bidders, legal advisors attended the meeting. The first meeting was held in August 2021 and the queries raised by the potential bidders regarding bidders’ qualification, bidding process and payment structure, etc., were addressed.
A detailed presentation was made to the four pre-qualified bidders, and the queries from them were addressed, earnest money for this transaction was approved and accepted by the bidders is Rs50million.It was also told that Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) will facilitate the lease transfer to the new buyer and a letter of comfort has also been issued to the company regarding outstanding liabilities. The financial advisors also gave a detailed briefing about the final bidding process. It was also intimated that upon the request of bidders revised ITB, SPA documents have been shared. The latest audited accounts of HEC have also been shared with bidders.
The bidders raised a question regarding in-hand orders, to which Federal Minister said that the matter has already been communicated to ECC and it will be resolved before the bidding date.
Copyright Business Recorder, 2021