Staff Reporter Islamabad
The Privatisation Board meeting held here in Is-lamabad on Wednesday, under the chairmanship of Federal Minister Mohammedmian Soomro.
The matters relating to National Power Parks Manage-ment Company Limited (NPPMCL), Jinnah Con-vention Center (JCC) and corporatization of State Life Insurance Corporation (SLIC) were discussed.
The privatisation of National Power Parks Man-agement Pvt. Limited (NPPMCL) is at an advanced stage but in order to align the capital structure with the tariff, 70% of the project cost will be based on long-term financing.
The matter relating to long term financing arrangements and its capital structure with NEPRA’s determined tariff and repayment of government loans State Bank of Pakistan and local banks were contacted for commercial borrowing, a committee to that effect was also constituted by CCoP to resolve the matter.
It was decided after the committee meeting that PC would recourse to com-mercial borrowing from local banks to replace the GoP’s excess equity and loan, the rate for debt fi-nancing is fixed by NEPRA.
The transaction committee for NPPMCL in its re-cent meeting agreed upon the scheme for local fi-nancing ahead of equity process in the transaction.
The PC Board recommended the scheme of debt-recapitalization and refinancing of NPPMCL in line with the recommendations of transaction committee.
The PC Board approved the list of 12 potential bid-ders/investors who have shown interest in the Jinnah Convention Center (JCC) transaction. The pre-qualified parties would be allowed for due diligence of the JCC property to participate in the bidding process subsequently.
The matter relating to the corporatization of the State Life Insurance Corporation (SLIC) was also discussed.
CCoP and Federal Cabinet approved the divestment of up to 20% of GoP shares in the corpo-ration.
In order to proceed further with divestment of 20% of shares of SLIC in the proposed privatisa-tion the corporatization of SLIC is a pre-requisite.
The Ministry of Commerce will proceed for corpo-ratization and related legislation. The PC Board decided to take up the matter with CCoP being a competent forum.