The federal government has imposed new conditions on granting approval for the sale of the majority shares and handing over management control of K Electric (KE) to Shanghai Electric Power (SEP). The Abraaj Group currently controls the management and owns the majority shares in the power utility company however it is reluctant to disclose the required information to the government.
An anonymous source told ProPakistani that SEP and Abraaj Group contacted the newly formed Pakistan Tehreek-e-Insaf (PTI) led federal government. Both companies presented their case and asked for the approval for changing hands of KE majority shares.
The government demanded the submission of the real or true copy of the agreement regarding the sale and purchase of 66.4 percent shares of KE. Abraaj agreed to sell its 66.4 percent shares in KE to SEP for $1.77 billion, according to the agreement. The government also demanded that KE must make its liabilities zero before changing management and shareholders.
“The government also requires a written undertaking from SEP regarding its investment plans and supply of electricity without any interruptions in its licensed area,” the source added.
They told that SEP and Abraaj Group are reluctant to disclose the agreement of share sale. They say that the agreement is private and a confidential document between 2 business entities and could not be made public.
On the gas charges KE, under Abraaj management, still has a bill to settle with Sui Sothern Gas Company (SSGC).
According to KE, the outstanding balance towards SSGC is Rs. 13.7 billion while SSGC says the receivables are Rs. 80 billion.
The previous government’s Cabinet Committee on Privatisation (CCOP) approved to grant the National Security Certificate to SEP for the purchase of majority shares of KE. But the matter was being delayed due to National Electric Power Regulatory Authority not fulfilling the desired multi-year tariff.
KE Behj De Khud Ko