Privatization Commission Generated Over Rs. 1 Billion by Auctioning Properties

Privatization Commission on Monday informed the senate standing committee on privatization, that 23 properties in various cities have been sold in September through an open auction, and a sum of Rs 1.11 billion was generated for the national exchequer.

The meeting of the Senate Standing Committee on Privatization was held under the Chairmanship of Senator Shammim Afridi at the Parliament House on Monday.

The committee directed that the implementation status on the recommendations made by the committee in its last meeting on the capacity of the National Power Parks Management Company Limited (NPPMCL) plant should be re-evaluated and completed without further delay.

In this regard, the committee was apprised that Annual Capacity tests on both the power plants of NPPMCL are being conducted every year regularly and witnessed by Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) as per provisions of the Power Purchase Agreement (PPAs). Accordingly, the annual Capacity Tests of both the power plants were conducted on completion of 3rd anniversaries of Commercial Operation Dates (CODs) and current capacities of NPPMCL’s power plants for 4th Agreement Year are better than the agreed capacities under the PPAs,i.e., Net Capacity of Haveli Bahadur Shah Power Plant: 1176.042 MW, net capacity of Balloki Power Plant: 1164.608 MW.

Briefing by the Ministry of Privatization on “Sale of properties owned/ controlled by the Federal Government” under the ongoing Privatization Programme was also taken up. Auctions were held from 7 to 28 September 2021 in different cities of the country under the supervision of the auction committee. Twenty–three (23) properties having a reserve price of PKR 1.01 billion were successfully auctioned for Rs. 1.11 billion. Whereas, three (3) properties, having a reserve price of PKR 5.4 billion were unable to attract any bidder. The Inter-Ministerial Committee (IMC), PC Board, and Cabinet Committee on Privatisation (CCoP), and Federal Cabinet approved the auctions and bid prices.

Advertisement for the hiring of a financial adviser for the sale of tentative seventeen (17) properties have been placed in media, the committee was briefed. The Chairman Committee gave directions to share with the Senate Committee copies of the approved correspondence with the Cabinet.

The committee was informed that the unsold properties worth Rs 5.65 billion include 120 Kanal Land Adjacent Estate, Phase 1, Multan, under Trading Corporation of Pakistan (TCP), 48 Kanal 18 Marla land adjacent to Link Airport Road, Rahim Yar Khan, under CAA, Aviation Division, and 41.628 Kanal land and properties adjacent to 87 Shahrahe-Quaid-e-Azan, Lahore, under Republic Motors (Private) Limited, Ministry of Industries & Production, and the unauctioned properties also included Ministry of Water Resource’s 2 Kanal Land, near Saidu Sharif Road, Swat, KPK. The auction is postponed on KP Govt. request.

Briefing by the Ministry of Privatizations on, “SME BANK Limited’ under the ongoing Privatizations Programme was also taken. The committee was informed that despite all efforts and iterative interactions with the pre-qualified bidders to date, positive feedback from the pre-qualified bidder is not for the coming. Alternatively, SME Bank is being proposed to be delisted so as Finance Division and SBP may proceed with alternate plans to either re-capitalize or liquidate the bank given piling up colossal losses resulting in negative equity in excess of Rs. 3 .5 Billion. The Chairman Committee acknowledged the current status of delisting and asked to keep the committee informed on the process of delisting.

The meeting was also briefed by the Ministry of Privatization on the current status of Privatization of Services International Hotel, Lahore. The Chairman Committee inquired about the continuous variation in height status, to which the committee was informed that height clearance from CAA was approved as 350 ft, which was further reduced to 310 ft by PAF.

The approved height was one of the key parameters used to determine reserve price by the Financial Advisor. Nonetheless, a reference was received from the CAA, indicating a further reduction in height in the light of the latest approval of the federal Cabinet. According to the revised approval, a maximum of 245 ft height has been communicated by CAA vide their letter dated 24 May 2021, which has a material impact on the valuation of the property.

The committee was informed that on 27 October 2021, the Cabinet took note of the presentation by the Secretary, Aviation Division, on “Height Restrictions under Rule 68 (Obstacle Limitation Surface) of CAA Rules” and Aviation Policy and its implementation status, highlighting any deviations (if any) and the reason thereof. Further, the Cabinet ratified the decision of the CCoP in the case, titled “Privatization of services international Hotel Lahore-Approval of Bidder and Bid Price,” taken in its meeting, the committee was informed that upon ratification/approval of SIH bidding process by the Federal Cabinet, the Privatization Commission on November 02, 2021, has issued a Letter of Acceptance (LoA) to the successful bidder for completion of remaining formalities.

The meeting was attended by Senator Syed Muhammad Sabir Shah, Muhammad Qasim, Anwar Lal Dean, Anwar Lal Dean, Molvi Faiz Muhammad, and Senator Aon Abbas. Senior Officials from the Ministry of Privatization Commission and IT/RE, PC was also in attendance.

Source: Pro Pakistani

[related_post themes="text" id="82762"]