Govt reengages Credit Suisse as FA for NPPMCL privatisation

ISLAMABAD: Cabinet Committee on Privatization (CCOP) on Wednesday granted approval to reengage M/S Credit Suisse Singapore as financial advisor for selling of two RLNG power plants run by the National Power Parks Management Company Limited (NPPMCL).

The decision was taken as per the Prime Minister’s directives given prior to his Qatar visit to reengage the financial advisor for selling 2 RLNG power plants. The Ministry of Energy as well as the Ministry of Power and Petroleum also had to resolve all relevant issues, which were hurdles in the way of selling out the NPPMCL-run RLNG power plants.

The CCOP also approved the delisting of four properties from the privatisation list on a proposal of the Ministry of Commerce. The proposal was made on account of the Trading Corporation of Pakistan (TCP) that intends to establish cold storage facility on the plot measuring 15 acres adjacent to plot No 42, Multan Industrial Estate.

The CCoP took the decisions at a meeting chaired by the Federal Finance Minister Miftah Ismail. Federal Defence Minister Khawaja Muhammad Asif, Federal Power Minister Khurram Dastgir Khan, Federal Industries Minister Murtaza Mehmud, Federal Commerce Minister Naveed Qamar, Federal Privatization Minister Abid Hussain Bhayo, MNA and former PM Shahid Khaqan Abbasi, Coordinator to PM on Economy Bilal Azhar Kayani, federal secretaries and senior officials attended the meeting.

Earlier, a summary was tabled by the Privatization Commission on the reengagement of the NPPMCL financial advisor. The meeting was apprised that Financial Advisory Services Agreement (FASA) signed between the commission and Credit Suisse, Singapore for the privatisation of NPPMCL expired on April 29, 2022.

It was reiterated that the government was committed to invite the much-needed private sector investment and expertise in the power sector.

Based on the efforts of the federal government, international investors were now looking for investment opportunities in Pakistan.

Keeping in view the recent developments and improved appetite of the investors, and to undertake valuation exercise for the sale of the two power plants, the CCoP allowed the re-engagement of financial advisor to proceed with the privatisation of NPPMCL.

The meeting also discussed the proposal for delisting of TCP plot measuring 15 acres adjacent to plot No 42, Multan Industrial Estate, from the privatisation list.

The meeting was informed on the process of the plot’s auction that was made in 2020; however, no one participated in the process.

In the meantime, TCP has initiated the process for establishment of cold storage facility on the said property as per the requirements of the area and in consultation with the Pakistan Fruits and Vegetable Exporters Association (PFVEA) in public-private partnership mode and requested to retain the property. The committee approved the proposal and gave TCP six months to work out the feasibility of the project and finalised details of the proposed PPP project.