ISLAMABAD— A parliamentary panel has shown reservations over hiring process of Financial Advisor (FA) as transaction manager for privatisation of two newly RLNG power plants 1230 MW Haveli Bahadur Shah and 1223 MW Balloki.
Senate Standing Committee on Privatisation met under Chairman Mustafa Mahmud grilled the government decision of dispose of profitable RLNG power plants and process of appointment of FA for the transaction of two RLNG power plants.
Member Committee Faheem Khan showed his serious concern over appointment of consortium Credit Suisse (CS), Elixir Securities (ES) and Ernst and Young Ford Rhodes (EY(, Akhund Forbes, Latham & Watkins & Lummus Consutatns International over Consortium led by Citigroup Global Markets Ltd which quoted lowest financial price. Credit Suisse (CS) was 2nd highest bidder.
He further questioned the criteria of selection of FA for the transaction of two RLNG power plants owned by National Power Parks Management Company Private Limited (NPPMCL).
Secretary Privatisation Commission (PC) Rizwan Malik said that the other four consortiums was unhappy because they lost the bid, however, he said that not a single complaint against the selection criteria was registered in 10 days following the selection of FA.
“On March 14, 2019, Evaluation Report and ranking of the pre-qualified consortium were presented to the six members Evaluation Committee (EC) for their endorsement to the Privatisation Commission (PC) Board. On March 20, 2019 PC Board after thorough deliberations approved the appointment of consortium of Credit Suisse (CS)”, secretary said.
Criticizing the government’s decision to invite international bidders for the transaction of RLNG Power Plants, the members of the committee said that the government could earn dollars in short term but not beneficial in long term.
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