ISLAMABAD: Privatisa-tion Commission (PC) is said to be at an advanced stage in finalising arbitration agreement between Karachi Electric (KE) and other stakeholders, which will expedite the sale of 66.4 per shares of the power entity to Chinese company Shanghai Electric Power (SEP), well-informed sources told Business Recorder.
Recently, KE had received a fresh Public Announcement of Intention (PAI) from SEP to acquire up to 66.4 per cent voting shares subject to receipt of regulatory and other approvals. The public offering would be of 4.640 billion shares or 16.80 per cent of the equity.
Finance Division informed a high-level panel that Privatization Commission was at an advanced stage in the finalisation of Arbitration Agreement with agreed ToRs by relevant stakeholders, including KE, to determine the exact claims of receivables and payables of KE.
Finance Division has conveyed to Privatisation Commission to issue National Security Division Certificate after obtaining views from other stakeholders, including FBR.
KE holds 66% shares with GoP holding equity of 24% in KE and the remaining shares are subscribed by the general public. In response to KE's demand for waiver of sovereign immunity for arbitration, Finance Division has underlined that no sovereign immunity will be waived by the GoP as it will have implications and that it has not been waived in the original Implementation Agreement (IA), 2005, as agreed by the then Finance Minister in December, 2018.
Finance Division is also of the view that only those customers such as defence installations will be included in the list of strategic customers who draw their budget from the federal government.
The sources said, no formal facilitation/ implementation agreement is required, only a letter of comfort from Finance Division regarding strategic customers shall suffice as advised by the Law and Justice Division.
The panel has directed the Ministry of Privatisation, Planning, Development and Special Initiatives and Power Division to resolve all issues related to KE expeditiously in consultations with all stakeholders.
Copyright Business Recorder, 2020
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