DISCOS: PD directed to carry out evaluation of assets by reputed firm

ISLAMABAD: The Cabinet Committee on Privatisation (CCoP) on Tuesday directed the Power Division to carry out the complete evaluation of the assets of the DISCOs by a reputed valuation firm and to present the synopsis of the financial health of the companies. Federal Minister for Finance and Revenue Miftah Ismail chaired a meeting of the CCoP here on Tuesday.

Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Privatization/Chairman Privatization Commission Abid Hussain Bhayo, Special Assistant to the PM on Government Effectiveness Dr Muhammad Jehanzeb Khan, federal secretaries, and senior officials attended the meeting.

The Privatisation Commission tabled a summary related to private sector participation in the management of DISCOs.

The CCoP, after detailed deliberation, directed the Privatisation Commission to present a detailed presentation on public-private partnership in the management of DISCOs (IESCO, FESCO, and HESCO). Further, Power Division was directed to carry out the complete evaluation of the assets of the DISCOs by a reputed valuation firm and to present the synopsis of the financial health of the companies.

The Privatisation Commission presented a report of the sub-committee constituted by the CCoP on privatisation of Services International Hostel (SIH). The CCoP in its meeting on June 24, 2022, constituted a sub-committee to review the SIH transaction.

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In the decision of the Sub-Committee, a fresh valuation of the property was conducted through an independent Punjab-based valuer, M/s AJ Valuers Association (Pvt) Ltd. The CCoP, after discussion, directed the Privatisation Commission to submit the summary through the Ministry of Law and Justice.

The CCoP deferred a summary related to addressing pending issues in the transaction closure- privatisation of Heavy Electrical Complex (HEC).

The Board of Privatisation Commission has reportedly expressed its concern on the delay in the resolution of pending issues due to which the completion date of the HEC transaction is not heading towards a conclusion.

The HEC started its commercial operations in 1998. The entity is owned by Stare Engineering Company (SEC) working under the administrative control of the Ministry of Industries and Production (MoI&P). The HEC manufactures power transformers of 132kv and 66kv along with services for testing, repairs and onsite commissioning of transformers. The entity is located in Hattar Industrial Estate, Haripur.

The CCoP approved the transaction structure of the HEC on November 16, 2020, wherein, sale of all (96.6 per cent) government shares of the HEC was approved. The decision of the CCoP was ratified by the federal cabinet on December 1, 2020.

The Board has recommended that the pending matters should be placed before the CCoP for its consideration and necessary directions.

Copyright Business Recorder, 2022