Privatisation Commission to privatise NPCC on May 5
ISLAMABAD — Pakistan Privatisation Commission (PPC) yesterday decided to privatise the National Power Construction Company (NPCC) on May 5 for which it has sought Expression of Interests (EoIs) from the potential bidders to acquire 51 per cent shares along with management control.
The decision was taken due to the increasing interest of parties in the transaction and to creating maximum opportunity for the investors in the related field. Earlier, the last date for EOI and SOQ was August 30, 2007.
Parties which had previously submitted EOIs and SOQs for the transaction and joined the due diligence process need not apply afresh. However, these parties shall reaffirm their continued interest in the transaction and provide updated financial and other information as required under the Request for Statement of Qualification document (RSOQ), said a PC announcement.
National Power Construction Corporation (Private) Limited (NPCC) is a specialist contracting company of Pakistan for construction and management of turnkey power projects including extra high voltage transmission lines, distribution networks, substations, power generation plants, industrial electrification, external lighting of housing complexes etc.
NPCC’s major area of operation during the last three decades had been in the Middle East with concentration in Saudi Arabia. NPCC has successfully secured and completed projects valuing over $650 million.
The Privatisation Commission has asked the prospective investors engaged in the engineering construction to submit EOI, providing information such as name of company, nature of business together with copies of “constitutive” documents proof of net worth of Rs300 million as per audited financial statements.
They should also provide information about their contracting business preferably installation of extra high voltage transmission lines to demonstrate the ability to own, efficiently manage and operate company after winning the deal.
The PC also asked the potential buyers to provide duly certified copies of their businesses by Chartered Accountants firms, for the latest year but not earlier than June 2007, list of director (s) along with copies of Computerised National Identity Card (CNIC), name, address, telephone, mobile, fax, email of the focal person to be contacted, pending, threatened litigation (s) against the company and the director(s).
In the event of a consortium, the consortium will be required to provide a consortium agreement identifying the lead bidder (a company) and setting forth obligation inter-se of consortium members.
The winning consortium will have to enter into legally bound inter-company agreements. The investors have been asked to submit EOIs (in duplicate) together with a non-refundable processing fee of $1,000 or Rs63,000 payable in the form of a bank draft(s)/pay order(s) in favour of Privatisation Commission, Government of Pakistan to reach the PC by May 05, 2008. Parties who submit an EOI will be dispatched a Request for Statements of Qualification (RSOQ).
The early submission of EOI will allow parties maximum time for completion of their SOQ document as the SOQ must be submitted PC not later than May 15, 2008.
The conditions include that the Purchaser shall provide an undertaking to continue to operate Company’s facilities and shall not in any way abandon, cease to operate or otherwise shutdown the company’s existing facilities.
The bidder shall bid on the basis of Audited Accounts of June 2007 and may also factor in the latest un-audited accounts available prior to the bidding, earnest money for qualification as a bidder shall be Rs50 million.
All matters including terms and conditions relating to privatisation of NPCC shall be communicated to all qualified bidders from time to time prior to the bid date which shall form the basis for the bid.
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