ISLAMABAD: The Cabinet Committee on Privatization (CCoP) constituted a sub-committee for immediate resolution of bottlenecks in National Power Parks Management Company (NPPMCL)-the owner of two RLNG power plants in Balloki and Haveli Bahadur Shah.
The committee would comprise of Minister of Power, Chairman Private Commission, Secretaries of Power, Petroleum and Privatization, Additional Secretary Finance Division and CEO NPPMCL.
The CCoP was apprised of the ongoing effort to recapitalize NPPMCL, the owner of earlier, the Commission arranged bids of Rs. 102 billion from a local syndicate of banks for NPPMCL which will release GOP funding and is currently working actively with relevant ministries to fulfill conditions precedent necessary for financial close.
Federal Minister for Finance and Revenue Miftah Ismail chaired the inaugural meeting of Cabinet Committee on Privatisation (CCoP).
The meeting was attended by Federal Minister for Privatization Abid Hussain Bhayo, Minister for Defence Khawaja Muhammad Asif, Minister of Interior Rana Sanaullah Khan, Shahid Khaqan Abbasi, Minister for Industries and Production Syed Murtaza Mahmud, Advisor to the PM on Establishment Ahad Cheema, Chairman Privatisation Commission Saleem Ahmad, Federal Secretaries, and senior officials of relevant ministries.
Chairman Privatization Commission (PC) presented the road map for current privatization programme for reaffirmation by newly constituted CCoP. .
He presented government’s plans for revival of Pakistan Steel Mills (PSMC). The plan focuses on revival through significant foreign direct investment and technology transfer generating significant employment opportunities for qualified workers.
The committee was apprised of a recent successful due diligence visit by a team of BaoSteel, the world’s largest steel producer. .
BaoSteel manufacturers 180 million tons of steel per annum and is one of four interested parties and plans to increase capacity of PSMC to 3 mtpa.
CCoP unanimously welcomed the prospect of PSMC revival, entailing commercial leasing of 1229 acres of land and jetty, and directed ministries of Industries & Production, Energy and Maritime to work with PC to remove all bottlenecks expeditiously.
Furthermore, Chairman PC tabled a summary on private sector participation in management of DISCOs.
CCoP agreed that this is a critical area of focus and directed PC to take one DISCO at a time to pursue a concessional arrangement focused on enhancing their financial viability and service quality. Additionally, transfer of DISCOs to provinces was also deliberated.
Minister of Finance apprised the Cabinet Committee on Privatization (CCoP) of foreign government interest in investing in Pakistan.
CCoP deliberated the modalities for negotiated Government to Government (G2G) commercial transactions and decided that it is not the domain of Privatisation Commission.
The CCoP directed Ministry of Finance to formulate the proposal for structured transactions in coordination with relevant ministries for consideration of the Cabinet.
The CCoP decided to reconvene and conduct further review of the privatization programme which is a high priority under current economic situation. APP
