The federal cabinet has reworded the decision of Cabinet Committee on Privatisation (CCoP) with respect to sale of 66 per cent shares of M/s Abraaj in KES Power Limited to Chinese firm M/s Shanghai Electric Power Company Limited.
On April 12, 2018 the cabinet was informed that a meeting of the Cabinet Committee on Privatisation (CCoP) was held on March 30, 2018. In terms of rule 17(1) of the Rules of Business, 1973, the following three agenda items of Privatization Division were recommended for ratification of the cabinet: (i) request for grant of National Security Certificate to KES Power Limited for Sale of all its 66.4% Shareholding in K-Electric Limited (KE); (ii) extension of Financial Advisory Agreement (FCA) for the Privatisation of Pakistan Steel Mills Corporation (PSMC); and (iii) restructuring of Pakistan International Airlines Corporation Limited (PIACL) (transaction).
During the course of discussion in the federal cabinet meeting, it was pointed out that the decisions of CCoP, presented for ratification of the cabinet, did not truly reflect the discussion and decisions taken in the meeting. After a protracted discussion, it was decided to reword the decisions of CCoP with consensus.
The federal cabinet approved amendments in the decisions taken by the CCoP in its meeting held on March 30, 2018 rewording/rearranging ie National Security Certificate (NSC) will be issued and Privatization Commission will issue the certificate without any delay after ratification of the CCoP decisions by the Federal Cabinet subject to the following: (i) M/s Shanghai Electric Power Company Limited will give an undertaking to the Government of Pakistan to ensure uninterrupted electric supply to all Armed Forces/Military installations/infrastructure at Karachi, especially during emergencies/war and training/operational periods in/outside cantonments; and (ii) M/s Shanghai Electric Power Company Limited will be the legal successor-in-interest of KES Power Limited; hence, it will give an undertaking to the Government of Pakistan that all existing financial liabilities of K-Electric Limited shall be the responsibility of M/s Shanghai Electric Power Company Limited in accordance with the laws of Pakistan. And M/s Shanghai Electric Power Company Limited will continue to be responsible to pursue all existing cases of K-Electric Limited and abide by all legal, national and international requirements as per law.
The CCoP decision of March 30, 2018 was approved by the cabinet subject to the following slight amendment ie the last sentence of the decision, "...and consensus in the light of earlier decision of CCoP in this regard" be replaced with according to rules.