December 1, 2021: The transaction of Heavy Electrical Complex (HEC) is in its concluding stage, said Federal Minister Mohammedmian Soomro while chairing a second pre-bid meeting of HEC in Islamabad today, a press release by the Ministry of Privatisation showed.
Federal Secretary Hassan Nasir Jamy, representatives of HEC, Ministry of Industries & Production, Financial Advisors, bidders, legal advisors attended the meeting. The first meeting was held in August 202 and the queries raised by the potential bidders regarding bidders’ qualification, bidding process and payment structure, etc. were addressed.
Federal Minister Mohammedmian Soomro said that the transaction of HEC is in its concluding stage and we are resolving the pending matters related to the transaction completion along with facilitating the potential investors. The HEC transaction/bidding is likely to be completed very shortly.
A detailed presentation was made to the four pre-qualified bidders, and the queries from them were addressed, the earnest money for this transaction was approved and accepted by the bidders is PKR 50mn. It was also told that Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) will facilitate the lease transfer to the new buyer and a letter of comfort has also been issued to the company regarding outstanding liabilities. The financial advisors also gave a detailed briefing about the final bidding process. It was also intimated that upon the request of bidders revised ITB, SPA documents have been shared. The latest audited accounts of HEC have also been shared with bidders.
The bidders raised a question regarding hand-orders, to which Federal Minister said that the matter has already been communicated to ECC and it will be resolved before the bidding date. He added that the Ministries of Industries and Production, Power and Privatisation are in close liaison to resolve all matters of HEC related to land transfer, in-hand orders and liabilities towards KPEZDMC before the final bidding. It is our prime concern to address the concerns and answer the questions raised by the investors to successfully complete the transaction.
Federal Minister said that we are providing a level playing field to all the pre-qualified bidders, and ensuring the utmost transparency at the same time.