Govt mulls legal changes to pave way for K-Electric transfer

ISLAMABAD: Days after a team from Shanghai Electric, the company that is in a bid to buy controlling stake in K-Electric for $1.77 billion, left town, the government has come up with some changes in the legal framework surrounding the deal to allow for multiple financial transactions in the future.

A meeting of the Cabinet Committee on Energy (CCoE), presided over by Prime Minister Shahid Khaqan Abbasi, deliberated on the revised framework presented by the Privatisation Commission.

The meeting noted that such a legal and financial platform should be in the light of international standards to prove to the markets through actions and not words how Pakistan was progressing on ‘ease of doing business’.

Minister for Privatisation Danyal Aziz told Dawn that the previous legal arrangement including the sale and purchase agreement (SPA) of the erstwhile Karachi Electric Supply Corporation (KESC) allowed only one management and assets transfer after the first privatisation. That transaction has already been done almost 10 years ago when the utility was taken over by Abraaj Capital.

Published in Dawn, 8th May, 2018