ISLAMABAD: The Ministry of Privatisation has informed the National Assembly Standing Committee on Privatisation that currently, the Cabinet Committee on Privatisation (CCoP) is reviewing the Services International Hotel (SIH) transaction.

The ministry submitted a brief to the committee in response to a question raised by Mehreen Razzaq Bhutto. The ministry stated that a sub-committee constituted endorsed the appropriateness of the privatisation process and valuation and the same would be considered in the next meeting of the CCoP.

While giving background, the Ministry of Privatisation stated that the financial adviser had proposed the reserves price Rs2,250,000,000 on the basis of input from three independent valuators. The reserves price was approved by the CCoP on March 2021 and was ratified by the cabinet on April 2021.

Subsequently, pre-bid meeting was held with the four interested parties. However, after the pre-bid meeting all the four interested parties refused to participate in the bidding on account of higher reserve price in comparison to market value.

The meeting was further told that the Civil Aviation Authority (CAA) has reduced the height of the building from 310 ft to 245 ft in May 2021 and financial adviser had proposed to revise the reserve price due to reduction in maxim height of the property to ensure marketability of the property besides recommended to go for sale for SIH through an open auction.

The ministry further stated that the open auction was held in Pearl Continental (PC) Hotel, Lahore on August 26, 2022 and two parties participated. M/s Faisal Town (Pvt) Ltd emerged as the highest bidder with the highest bid amount of Rs1, 951,718.500. CCoP approved the highest bid amount and bidder on September 10, 2021. Cabinet after deliberation ratified CCoP's decision on October, 2021, it added.

The meeting was informed that the Letter of Acceptance (LOA) was issued to the successful bidder on 02 November 2020 requiring payment as per terms of bid documents 30 per cent of sale amount was received on t5th November 2021, whereas, total sale proceeds were received on 7th January 2022. Sale documents need to be signed by Punjab Cooperative Board of Liquidation (PCBL), National Insurance Company Limited (NICL), Lahore Development Authority (LDA), and PC. PCBL requires permission from Judge Cooperatives Court, Lahore High Court which is awaited.

Copyright Business Recorder, 2022