KESC groans under burden of Rs 90b loans

KARACHI - Karachi Electric Supply Corporation (KESC) is groaning under the burden of a bank loan worth Rs. 90 billion and most of the company's properties are being mortgaged by the concerned banks, sources told The Nation on Wednesday. The company has also the burden of liabilities concerning WAPDA, PSO and the SSGC. It is worth mentioning here that KESC has taken a very smart move and write off its liabilities towards these companies. The new KESC management has taken over the office only after the assurance from the government in this matter. It is pertinent to mention here that the previous owners of KESC, the Al-Jomaih Group, had taken loans by mortgaging properties of the company, including its power plants. The new management, on the other hand, is also looking for some leftover properties in order to mortgage them with banks to obtain loans.  The Abraaj Group has invested its money in the KES Power and the Al-Jomaih and NIG hold 30 and 20 percent shares respectively. Abraaj had invested $361 million in the KES Power while this amount increased the equity of the project leading to higher possibilities of getting loan from banks. On the other hand, the shift of power shares from the Al-Jomaih to Abraaj is not completed yet as the government had not so far approved it. The new management has taken over the charge of the offices and begun to draw their salaries from the KESC. All this is being done with permission of the stakeholders of the KESC, claimed the Abraaj management. It remains inquisitive that how the government and the ministry of water and power remained at ease throughout these proceedings.  It is also debatable that why the state has given a freehand to the company in affairs of the KESC. Now, it is crystal clear that Abraaj Group has not invested even a single penny in the KESC. The company has been paying the new management handsome amount as their salaries but on the other hand the Group is not even investing in KESC and its power generation sector.

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