Govt moves to resolve property dispute with PTCL

[Lahore_Real_Estate]

Saturday, April 24, 2010
By Israr Khan

ISLAMBAD: The government has formally requested UAE telecom giant Etisalat to de-list the private and under-litigation properties in an attempt to close the transaction of the remaining overdue proceeds of $799 million.

Etisalat holds management control of PTCL after buying its 26 per cent shares for $2.6 billion in a privatisation deal in 2006.

Federal Minister for Privatisation Senator Waqar Ahmed Khan on Friday, while giving go a head signal to start privatisation of three main public entities in financial and power sectors, was informed that recently another 99 properties in Punjab have been transferred to Pakistan Telecommunication Company Limited (PTCL).

Chairing the privatisation commission board meeting he approved initiating the privatisation process of Jamshoro Power Company (JPC), SME Bank, and Heavy Electrical Complex (HEC).

The meeting was informed that World Bank has shown interest to fund and rehabilitate the technical potential of Jamshoro Power Company (JPC) before taking it to the market, as was done in the case of Kot Addu Power Company transaction.

“We should seek approvals at a broader forum for all transactions,” ssaid the minister urging the privatisation board members to maintain transparency during the process.

For assessing the real value of the entities on the Privatisation Program, third party valuation should be carried out, and all phases of the process should be conducted in an open, fair, and transparent manner to the satisfaction of all stakeholders, he directed.

The PC Board desired to have a presentation from Finance Division regarding the utilisation of privatisation proceeds.

The Board also reviewed the status of the National Power Construction Company (NPCC) and decided for the revaluation of the entity.

The PC Board reviewed the status and progress of various other ongoing and upcoming transactions. The meeting also reviewed the progress made for the implementation of Benazir Employees Stock Option Scheme (BESOS) and decided to speed up the BESOS distribution certificates in the remaining entities and establish BESOS Trusts in the remaining entities.

So far under BESOS more than 40,000 workers of eight entities have received 12 per cent GoP shares unit certificates. This scheme is effective from August 14, 2009.