The Privatisation Commission says it is finalising an agreement with CS First Boston of the US to act as financial adviser for the privatisation of the Jamshoro power station.
The government is to sell a 26 per cent stake in the power station with management control. The plant has a capacity of 880 MW and is located 150 kilometres from Karachi.
The commission says it expects to invite bids for the station in May and hopes to close the transaction about six months later. It has received informal expressions of interest from foreign and local parties. Bids from groups which bid for the Kot Addu power station are also likely, the commission says. Bidders for a 26 per cent stake in Kot Addu were the UK’s National Power, Southern Electric of the US, AED Consortium, led by CMS Energy Corporation of the US, and British Gas. National Power submitted the highest bid for the plant and has been selected as preferred bidder. Mission Energy of the US declined to bid for Kot Addu but has expressed an interest in Jamshoro to the commission (MEED 19:4:96).
Further stakes may be sold in the future, the commission says, although no firm plans have yet been made. Stakes could be sold either to the strategic investor, or the employees or could be floated on the stock exchange (MEED 15 3 96)