Hafeez to chair management transfer of KESC to Hasan Associate on 1st Dec
By Asad Cheema

ISLAMABAD—Dr. Abdul Hafeez Shaikh Minister for Privatisation & Investment will chair the transfer of GoP shareholding and management control of Karachi Electric Supply Company (KESC) to the successful consortium of Hasan Associate (Pvt) Limited on Thursday December 1, 2005 at Karachi.
The signing ceremony of bid documents and issuance of Letter of Acceptance (LOA) of Karachi Electric Supply Company (KESC) was held on November 19, 2005. The Bid documents for the privatization of Karachi Electric Supply Company (KESC) were signed by M. Tahsin Khan Iqbal Secretary PC, Mr. Farooq Hasan of Hasan Associates, MD Aljomaih Holding Co. KSA Mr. Abdul Aziz Aljomaih and Mr. Haleem Siddique of Premier Mercantile Services, which was followed by the issuance of Letter of Acceptance (LOA) to the buyer on the payment of US $ 100 million.
It is another success for the government after sincere efforts of the entire stakeholder. Aljomiah Holding is a reputed name and their arrival in Pakistan is a good sign for the Privatisation Program of Pakistan. All pervious governments had tried their best to improve the efficiency of the company in the largest interest of the consumers and this government was also motivated to bring the transaction to a concluding point.
The new buyer will further inject the capital in the company with changed management to improve the quality of the services. The first installment of the proceeds i.e. US $ 100 million has been received while the buyer would pay remaining bid offer amount US $ 165 million by the end of the current month, which will follow the transfer of management control of the company. The buyer would invest US $ 500 million in KESC over a period of three years while during the first phase the buyer will invest US $ 75 million.
The Consortium of Hasan Associates being the second highest bidder for KESC agreed to match the highest offer given earlier by Kanooz Al-Watan of Saudi Arabia during the bidding for KESC on February 4, 2005 but Kanooz-Al-Watan Group failed to deposit the bid money within the stipulated period. Recently during a meeting of the full Federal Cabinet the improved offer of Rs.20. 24 billion of Consortium of Hasan Associates was accepted for Karachi Electric Supply Company (KESC).
Aljomiah Holdings Co. of Saudi Arabia has assured that their multinational diversified group would extend full support to the management to work together. Hasan Associates consider it a proud privilege to be associated with a challenging transaction, which they hope will benefit all the stakeholders particularly the life of 50 million people of Karachi.