ISLAMABAD: K-Electric (KE) management has sought a few weeks’ time for definitive comments on the draft of proposed Arbitration Agreement (AA) with the Federal Government, hinting at some internal changes in the management.
According to a communication of Ahmad Irfan Aslam, Head, International Dispute Unit, Attorney General Office with Bilal Azhar Kayani, Coordinator to Prime Minister on Energy and Economy, a meeting was held at the Energy Division on August 3, 2022 concerning several issues related to settlement of disputes between K-Electric and different federal and provincial governmental agencies wherein he was instructed to liaise with KE to finalize arbitration.
He has maintained that in this regard, his office has been in touch with Executives at KE, adding that it has been learnt from publicly available resources that KE is undergoing corporate restructuring and requires 4 to 6 weeks for its internal management change to be affected.
He further noted that KE shall be able take a definitive position only after the process of corporate restructuring is concluded.
Insiders in Power Division told Business Recorder that minority shareholders belonging to KES Power Limited intend to sell their shares and as the process is completed, the proposed draft of agreements for settlement of different issues will be finalized and presented to the federal cabinet for final nod.
The selling of shares will also require regulatory approval from the concerned government agencies like SECP.
When contacted, Bilal Azhar Kayani, Coordinator to Prime Minister on Energy and Economy said: “We are in active consultation with KE to resolve their outstanding issues. Substantial progress has been made and we are hopeful of reaching resolution including the arbitration, if needed.”
He further stated that KE is also going through an internal shareholding restructuring process; however, the government does not see that as an impediment in finding a solution to these long-standing issues.
Copyright Business Recorder, 2022