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September 19, 2019

Three PSEs included in active list of privatisation program

Business

September 19, 2019

ISLAMABAD: The government on Wednesday included state-owned State Life Insurance, and Islamabad and Lahore electric supply companies in the active list of privatisation program, while it directed the officials to complete the sale bidding process of two RLNG-based power plants by this year-end.

More: IMF assured of accelerating privatisation

The cabinet committee on privatisation took the decision during a meeting presided over by Adviser to the Prime Minister on Finance and Revenue Hafeez Shaikh.

The meeting approved inclusion of State Life Insurance Corporation and Islamabad Electric Supply Company and part of Lahore Electric Supply Company in active list of privatisation program. The meeting further considered a proposal for delisting of Telephone Industries of Pakistan (TIP) from the privatisation program and approved it in view of the ministry of information technology and telecommunication’s plan to revive the TIP through a joint venture which has already been undertaken in consultation with the TIP’s employees and the privatisation commission.

Related: 10 more SOEs added to privatisation list 

The cabinet committee further approved a proposal by the ministry of privatisation for following a hybrid option for the privatisation of National Power Parks Management Company Limited (NPPMCL), comprising two re-gasified liquefied natural gas- (RLNG) based power plants – 1,223 megawatts Balloki power plant and 1,230MW Haveli Bahadur power plant. The committee instructed the privatisation commission to complete the bidding process by end of December.

“Under the approved plan, if the highest bidder for both plants remains the same, the bidder would be offered to buy the combined entity and in case the highest bidder for both plants is different, the demerger would become a condition precedent to transaction closing,” an official statement said.

“There would be a divestment of 100 percent equity of stake of NPPMCL in respect of both power plants.”

The committee discussed five agenda items related to the ongoing privatisation program of the government. The privatisation commission briefed the cabinet committee on the 10 public sector entities (PSEs) approved for inclusion in the active privatisation list as per the committee’s decision last month and the subsequent process and placement of advertisements for hiring of financial advisers for the selected PSEs. The list includes Guddu Power Plant (747MW) – Central Power Generation Company Ltd (Genco-II), Nandipur Power Plant (425MW) – Northern Power Generation Company Ltd (Genco-III), House Building Finance Corporation, Oil and Gas Development Company Limited, Pakistan Petroleum Limited, First Women Bank Limited, Heavy Electrical Complex, Pakistan Engineering Company, Sindh Engineering Limited and Pakistan Re-Insurance Co Ltd..