CCoP approves bidding price of Heavy Electrical Complex

ISLAMABAD – The Cabinet Committee on Privatisation (CCoP) on Thursday approved the bidding price of Heavy Electrical Complex (HEC).

Bidding process of HEC was held on Monday, which was approved by the Board of the Privatisation Commission on next day (Tuesday). Meanwhile, on Thursday, the CCoP has also endorsed the bidding prices of HEC. The proposal will now be considered by the Cabinet for the final approval.

Federal Minister for Finance and Revenue Shaukat Tarin presided over meeting of the Cabinet Committee on Privatization (CCoP). Federal Minister for Privatisation Muhammedmian Soomro, Chairman Privatization Commission Muhammad Saleem, federal secretaries and senior officials attended the meeting.

On a proposal by the PC for the sale/divestment of all government shares (96.6%) of Heavy Electrical Complex to the successful bidder M/S IMS Engineering Pvt. Ltd., against their highest bid of Rs. 99.999/share amounting to Rs. 1,410,000,000, the CCoP approved the proposal. IMS Engineering Private Limited succeeded by offering the highest bid of PKR 99.999 per share, which is higher than the reserved price, while Waves-Singer and PEL came second and third respectively. The Board members were apprised that Cabinet Committee on Privatisation (CCoP) endorsed the reference price of 98.23% per share for HEC which was followed by the bidding.

HEC is the second public sector entity of which privatization has completed in so far tenure of the incumbent government. Earlier, the government had privatized only entity Services International Hotel besides selling few government owned properties in last three years. Services International Hotel, Lahore transaction was also successfully completed and sold it M/s. Faisal Town Pvt. Ltd at Rs1.951 billion after open bidding.

Currently there are 21 government entities on the active privatisation list, including sale of properties owned/controlled by the federal government. The government had decided to accelerate the privatisation programme as it has projected to generate Rs252 billion from the privatisation proceeds in the current fiscal year. Officials informed privatisation of SME Bank, First Women Bank Limited, Jinnah Convention Centre and House Building Finance Corporation Limited is in advanced stages.

They said that privatization programme has delayed due to Covid-19 and lengthy process of bidding. However, the privatization process of many PSEs is in advance stages, which would be completed soon. The government is mulling to complete the privatization of Jinnah Convention Centre, Islamabad by fourth quarter (from April to June) of the current fiscal year. Meanwhile, the government would privatize the remaining 17 government owned properties by the end of current fiscal year 2021-22. In last year, the government had sold ten properties, which had generated an amount of Rs920 million. Similarly, the privatization of Pakistan Re-Insurance Co. Ltd. (PakRe) would also be completed in the third quarter of current fiscal year. The government has planned to complete the privatization of Pakistan Steel Mills in fourth quarter of current fiscal year.

| Proposal will now be considered by cabinet for final approval

 

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