ISLAMABAD: The Cabinet Committee on Privatisation (CCoP) on Tuesday approved with consensus the divestment of 88 per cent government shares in National Power Construction Company (NPCC).

Earlier, during the bidding Mansour Al Mosaid Company of Saudi Arabia had emerged winner out of the three companies, with its highest offer of Rs1,420 per share to buy 88pc shares valued at Rs2.49bn. The offer was 26.9pc higher than the CCoP approved reference price of Rs1,119 per share.

Privatisation Commission Chairman Muhammad Zubair, who supervised the bidding process together with Secretary Privatisation Ahmad Nawaz Sukhera and board members, hinted at to resume the privatisation process of Pakistan Steel Mills and PIA in coming months.

The 88pc shares consist of 1.76 million shares while the remaining 12pc (240,000 shares) is owned by NPCC Employees Empowerment Trust under the Benazir Employees Stock Option Scheme (BESOS). NPCC was one of 11 major clients of Saudi company Mansour Al Mosaid which is said to be highly capable and committed to technical excellence for undertaking power plant projects, power transmission lines, underground cabling, distribution networks and rural electrification.

Against the reference price of Rs1,119 per share set by the Privatisation Commission, Habib Rafiq Construction Company and Frontier Works Organisation (FWO) offered Rs925 per share and Zahir Khan Construction Company offered Rs344.50 per share.

The three successful bidders had deposited the prescribed earnest money of Rs100 million along with submission of applications, specified supporting information and prescribed undertakings.

Sixteen parties had expressed interest in bidding process and seven were finally selected on the recommendations of the financial advisers as the pre-qualified parties in May last year.

NPCC was established in 1974 by the Government of Pakistan. It is a profitable company and has successfully completed projects worth $814 million all over the Middle East and North African region. It has a branch office in Saudi Arabia.

According to the 2014 balance sheet released by the Privatisation Commission, the total assets of NPCC were estimated to be Rs6,550 million, with liabilities amounting to Rs4,801m and total equity at Rs1,748m.

Published in Dawn, August 12th, 2015

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