PM Shehbaz Sharif has directed Shahid Khaqan Abbasi to resolve all outstanding issues of KE within three months, aimed at giving green signal for sale of over 66 percent shares of M/s Abraaj to Chinese firm M/s Shanghai Electric Power
In this regard a delegation of K-Electric’s majority shareholders representing Saudi Arabia’s Aljomaih Holding Company, Kuwait’s National Industries Group (NIG) and Infrastructure Growth and Capital Fund (IGCF) called on Prime Minister Shehbaz Sharif. The delegation was led by Sheikh Abdulaziz Aljomaih – Managing Director of Aljomaih Holding Company, one of the strongest conglomerates in Saudi Arabia with interests in diversified industries along with Riyadh Edrees – CEO of NIG. The delegation was assured that all measures will be taken to ensure timely privatization of the power entity.
Post-privatization, over $ 4 billion has been invested in KE’s value chain, enabling it to upgrade the power infrastructure including addition of new power plants. The operational improvements since privatization have resulted in savings of $ 5 billon to the national exchequer. Today, the company has doubled the number of customers, delivers twice the amount of energy units and has halved the transmission and distribution losses as compared to 2005. The transformation’s success has attracted investors like Shanghai Electric Power (SEP), one of the major players in the global energy sector. However, the acquisition process – which was formally initiated in 2016 – remained stalled due to unresolved issues, they added.
During the visit the delegation expressed its concerns over the industry’s growing challenges that are affecting KE’s financial sustainability. The delegation sought support from the premier on the resolution of long standing issues such as the Power Purchase Agreement (PPA) and the arbitration of historical dues between KE and various government entities, which are deterrents towards the sale of KE’s majority shares.
