The Privatization Commission Board on Thursday took several key decisions on the privatization of state-owned assets, including the Roosevelt Hotel in New York, the new Islamabad airport and power distribution companies.
Chaired by Adviser to the Prime Minister on Privatization Muhammad Ali, the 247th meeting of the Board recommended terminating the ongoing negotiated sale process for a 51% shareholding of the House Building Finance Company Limited (HBFCL). The process attracted a sole bid of Rs. 4.2 billion from the Pakistan Mortgage Refinance Company (PMRCL) against the reference price of Rs. 13.55 billion, prompting the board to recommend a fresh process with the appointment of a new financial adviser.
For the Roosevelt Hotel, New York, the Board annulled the process for hiring of a financial adviser and directed the invitation of fresh expressions of interest for the same. The decision, read a statement, aims to ensure a more robust and competitive process, as the pool of interested parties narrowed from seven to two following legal and technical compliance screening under the prescribed criteria.
The Board recommended including the new Islamabad airport in the Cabinet Committee on Privatization’s Privatization Program and moving forward with a concession model under an open, competitive process. The Board also authorized the Privatization Commission to engage in direct negotiations with the Asian Development Bank for its appointment as the financial adviser for this transaction.
The PC Board also approved the formation of a transaction committee for the privatization of HESCO and SEPCO. The committee would evaluate the deliverables submitted by Raiffeisen Investment, the financial advisor for the transaction.
The PC Board, per the statement, reiterated its resolve to conduct all transactions through structured, competitive, and transparent processes to achieve optimal outcomes for the national exchequer.