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Sunday December 05, 2021

Services International Hotel auction on 26th

August 25, 2021
Services International Hotel auction on 26th

ISLAMABAD: The PTI-led government will execute its first transaction by auctioning Lahore’s Services International Hotel (SIH) scheduled for Thursday (August 26), The News has learnt.

The transaction is expected to complete in the first half of next month.

Spanning over 15 canals, SIH property is located at upper mall road with a four-storey structure.

Ministry of Privatization has planned the auction date while giving choice to investors to exercise ‘mix use’ option, while developing the property, according to an official statement.

The current value has been fixed at Rs1.9497 billion and duly approved by the federal cabinet.

The statement said privatisation programme was an integral part of the governance reforms agenda and it would enable these SOEs (state-owned entities) to gradually wean away from dependence on the government.

“It will also enable the government to spend more on the social sector and thereby giving masses better facilities of life,” it said.

It is to be noted the Cabinet Committee on Privatization (CCoP) on March 18, 2021 had given the approval to Privatization Commission (PC) to proceed with the sale of SIH property.

In CCoP, its ‘reserve price’ was fixed at Rs2.25 billion, but it was not the final price and was subject to review. Now, it has been finalized at around Rs1.95 billion.

SIH is among the 19 Public Sector Entities (PSEs) on the active privatisation list.

Other SOEs on the list are: 1,223 MW Balloki Power Plant, 1,230 MW Haveli Bahadur Power Plant, SME Bank Limited, First Women Bank Limited, Jinnah Convention Centre, Islamabad, Mari Petroleum Limited (divestment of remaining shares), Pakistan Steel Mills, Pakistan Engineering Company, Heavy Electrical Complex, Sindh Engineering Limited, House Building Finance Corporation, Pakistan Re-Insurance Co. Ltd, Oil and Gas development Company Limited, Pakistan Petroleum Limited, Guddu Power Plant (747 MW) – Central Power Generation Company Ltd (GENCO – II), Nandipur Power Plant (425 MW) – Northern Power Generation Company Ltd (GENCO – III), State Life Insurance Corporation, and PIA-IL Roosevelt Hotel, New York.