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Privatization of Heavy Electrical Complex Nears Completion

Federal Minister for Privatization, Mohammed Mian Soomro, has said that the transaction of Heavy Electrical Complex (HEC) is nearing completion, as the related pending matters are being resolved and the potential investors are being facilitated.

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According to a handout issued by Privatization Commission, the Minister chaired the second pre-bid meeting on HEC in Islamabad on Wednesday. He said the Ministries of Industries and Production, Power, and Privatization were in close liaison to resolve all matters of HEC related to land transfer, in-hand orders, and liabilities toward Khyber Pakhtunkhwa Economic Zones Development & Management Compay (KPEZDMC) before the final bidding.

He underlined that it was the Ministry’s priority to address the concerns and answer the questions raised by the investors to successfully complete the transaction.

The first meeting was held in August 2021 and the queries raised by the potential bidders regarding qualification criteria, bidding process, and payment structure were addressed.

A detailed presentation was made to the four pre-qualified bidders, and the queries from them were addressed. The earnest money for this transaction was approved and accepted by the bidders and it was Rs. 50 million.

The meeting participants were told that KPEZDMC would facilitate the lease transfer to the new buyer and a letter of comfort had also been issued to the company regarding outstanding liabilities

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The financial advisors also gave a detailed briefing on the final bidding process. It was also informed that upon the request of bidders, the revised Invitation to Bid and Sales and Purchase Agreement documents had been shared. The latest audited accounts of HEC had also been shared with bidders.

The bidders raised a question regarding hand-orders, to which the Federal Minister said that the matter had already been communicated to Economic Coordination Committee and would be resolved before the bidding date.

Federal Minister, Mohammed Mian Soomro, affirmed that the HEC bidding was likely to be completed very shortly. He said, “we are providing a level playing field to all the pre-qualified bidders, and ensuring the utmost transparency at the same time.”

Federal Secretary, Hassan Nasir Jamy, also attended the meeting along with the representatives of HEC, Ministry of Industries & Production, Financial Advisors, bidders, and legal advisors.

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