KARACHI - Karachi Electric Supply Company (KESC) has finalised an Amendment Agreement (AA) with the Government of Pakistan (GoP), in accordance with the GoPs desire for increased public-private partnership in previously state-held institutions. This amendment comes as an addition to an earlier Implementation Agreement (IA) signed by the government in 2005. It was a crucial precondition in the finalisation of the agreement at the KES Power shareholder level, which would handover management control of KESC to Abraaj Capital. The amendment, signed between the government and KESC will facilitate private equity investment of $361 million with the completion of requisite corporate actions and necessary approvals over the next three years. This enable KESC to finally realise its goal of implementing an ambitious turnaround and growth plan, in accordance with the original privatisation plan. The investment comes through the introduction of Abraaj Capital, the market-leading regional private equity firm, based in Dubai and with a presence all over the Middle East, North Africa and South Asian (MENASA) region, as the new majority shareholder to the holding company of KESC namely KES Power. With funds under management of close to $6 billion worldwide, Abraajs strategic stake in KES Power of $361 million gives KESC the unique backing of the major player in the investment field in the region. The depth of funding capability likely to give the government significant comfort about the future of KESC under the new management. Abraajs investment in Pakistan will now exceed $500 million of equity, which includes its earlier investments in Bosicor, BMA Capital and MS Forging. By virtue of its direct investment in KES Power, Abraaj will acquire indirect majority equity stake in KESC. The entire sum of capital will come into KES Power the benefit of which will cascade to KESC in the form of enhanced electricity generation, transmission and meeting of the distribution needs of the countrys economic hub. The timing of the investment is crucial considering the state of KESCs outdated systems and losses that have aggravated loadshedding and outages over the last few years.