Govt to rehire Credit Suisse to sell stakes in two RLNG power plants

Staff Reporter

ISLAMABAD: The government plans to rehire Credit Suisse as a financial advisor to sell its stakes in two RLNG power plants.

In a possible government-to-government deal with Qatar, the transaction is expected to fetch at least $2 billion

Prime Minister Shehbaz Sharif prior to his last visit to Qatar instructed the Privatization Commission to re-engage Credit Suisse for this exercise.

The financial advisor will assist the PC in relation to financial restructuring, divestment options, valuation, reference price, bidding process, transaction documents, post-bid evaluation, and closure of the transaction.

Previously a Financial Advisory Services Agreement (FASA) for the privatization of National Power Parks Management Company Limited (NPPMCL) was signed between PC and M/s Credit Suisse, Singapore on April 30, 2019, which expired on October 30, 2020. Subsequently, FASA was extended for another period of 18 months which expired on April 29, 2022.

The PC forwarded a draft addendum to Credit Suisse for another extension of 15 months on the same terms and conditions laid down on April 30, 2019.

It is worth mentioning here that pre-qualified potential bidders like to have complete clarity on the sectoral and transaction issues relating to the energy chain, which have a significant impact on NPPMCL.

The CCoP on June 24, 2022, decided and approved the constitution of a sub-committee for an early resolution of major bottlenecks/issues in relation to NPPMCL transactions.

In line with the CCoP decision, two meetings were held and the committee meticulously examined the transaction-related bottlenecks. It is expected that inter-ministerial issues will be resolved by the respective divisions/entities for the successful closure of the transaction.

It is pertinent to mention here, that Government is committed to inviting the much-needed private sector investment and expertise in the power sector. Based on the efforts by the Federal Government, international investors are now looking for investment opportunities in Pakistan.