PC invites EOI for privatization of 96pc shares of HEC

ISLAMABAD: The Privatization Commission (PC) has invited Expression of Interest (EOI) from prospective investors, industrial companies and groups and consortium of investors with demonstrable ability to own and operate the company through acquisition of minimum 96 per cent government of Pakistan shares of Heavy Electrical Complex (HEC).

According to statement issued here on Saturday, this decision was approved by the Cabinet Committee on Privatization (CCOP).

HEC, one of the industrial units of State Engineering Corporation, is engaged in the manufacturing of power transformers of different types (total annual capacity 3000 MVA) with primary voltage rating of 66 and 132 KV.

In addition, the HEC undertakes repairs and refurbishment of old and damaged power transformers upto 500 KV.

HEC was incorporated as a private limited company in year 1991 and commenced commercial operations in year 1997.

HEC is located in Hattar Industrial Estate about 65 Km from the country's capital Islamabad.

HEC has six main manufacturing shops namely Machine shop, Winding shop, Insulation shop, Core shop, Fabrication shop and Assembly shop.

In addition HEC has an oil purification shop, high voltage test laboratory equipped with overhead traveling cranes.

HEC can diversify its manufacturing range by including other products such as instrument transformers, high voltage circuit breakers and other grid stations equipments for meeting demand of the products in domestic and foreign markets.

The interested parties have been asked to furnish their EOI by October 1 along with a non-refundable processing fee of US$ 5,000 or PKR 425,000 in favour of Privatization Commission.

Parties submitting an EOI will only be dispatched a Request of Statement of Qualification (RSOQ) document, which shall form the basis of pre-qualification.

An early submission of EOI will allow the interested parties maximum time for completion of their Statement of Qualification (SOQ) document, which must be submitted to PC no later than on October 15, 2011.

The parties who are interested in the HEC transaction must apply fresh except the parties who have submitted an EOI and subsequent SOQ in response of PC advertisement dated May 5, 12, and 21, 2011.

The Successful Bidder shall continue to operate HEC manufacturing facility as going concern.

Up to 4 percent shares are allocated for employees of HEC through Benazir Employees Stock Option Scheme (BESOS).

Copyright APP (Associated Press of Pakistan), 2011