Daily Archives: November 8, 2021

Senior representatives of one of the world’s largest investment banks, JP Morgan Chase & Co., called on Federal Minister for Privatization, Mohammed Mian Soomro, to discuss privatization of the National Power Parks Management Company (NPPMCL) on Monday.

The meeting was held in the backdrop of the government’s plans to privatize two regasified liquified natural gas (RLNG) power plants of Haveli Bahadur Shah and Balloki.

It is to note that the government has initiated a process of implementing economic reforms in the power sector. As a part of the reforms, the Ministry of Privatization is seeking to privatize various state-owned entities to enhance capital formation outside the government budget and to improve efficiency through competition, accountability, managerial autonomy, and profit incentives.

The process of privatization of two RLNG plants was slowed down due to the COVID-19 pandemic. Twelve parties were prequalified in April 2020. The process restarted after the COVID-19 restrictions were relaxed. At present, the Ministry is pursuing debt-refinancing and recapitalization for NPPMCL, with local banks.

Expressing his views, MD JP Morgan said the consortium of Qatar Investment Authority (QIA) was a strong contender of the said power plants.

The representatives inquired about the current volume of circular debt, payment due to the IPPs, and the huge receivables of NPPMCL, which could have a negative impact on the potential investment in the sector.

Federal Minister Mohammed Mian Soomro said a number of meetings were held with the Ministry of Energy and Finance Division, adding that the local banks and DFIs were considering providing a significant portion of debt for NPPMCL.

The meeting participants were briefed that the Ministry of Privatization had resolved various key issues to make this transaction viable.

Federal Minister hoped that the transaction would be completed in the ongoing fiscal year owing to a strong response from investors.

The delegation included Asif Raza, Managing Director, Global Corporate Bank CEEMEA, Imran Zaidi, Managing Director, Global Corporate Bank MENA, and others. Senior officials of the Ministry also attended the meeting.

Source: Pro Pakistani

Chairman Special Technology Zones Authority (STZA), Amer Ahmed Hashmi, called on Prime Minister Imran Khan on Monday and briefed him on the progress and achievements of STZA.

The Chairman briefed the Prime Minister on the progress of STZA vis-à-vis Islamabad Technopolis, the interest of national and international companies in investment in Pakistan, and the signing of Memorandums of Understanding (MoUs) in Expo 2020 Dubai.

The Prime Minister was also briefed on the details of the Pakistan Tech Summit: Istanbul. He was told that as a result of the efforts of STZA, several anchor tenants, Small & Medium Enterprises (SMEs), startups, universities, and venture capital fund managers were planning to enter into the zones.

The Prime Minister expressed satisfaction over the progress of the STZA and showed a desire for the rollout of technology zones in all provinces and all the major cities across Pakistan.

Source: Pro Pakistani

Bank Islami Pakistan Limited (BIPL) and Elahi Group of Companies (EGC)/Zafar Agencies (ZA) have filed a compromise agreement in the Sindh High Court through which all liabilities will be settled and full closure and withdrawal of all pending complaints and litigation has been agreed on a no-fault basis between the parties. Accordingly, the matter stands fully resolved.

Both parties express their disappointment that a commercial dispute got dragged in with the law enforcement agencies, and both parties shall make concerted efforts to facilitate each other further strengthen their relations.

Source: Pro Pakistani

At a CDWP meeting presided over by Deputy Chairman Planning Commission, Mohammad Jehanzeb Khan, cleared three development projects with a cost of Rs. 9.168 billion and recommended two projects worth Rs. 130 billion to the Executive Committee of the National Economic Council (ECNEC) for further consideration.

Secretary Planning, Hamid Yaqoob Sheikh, senior officials from Planning Commission, and Federal Ministries/Divisions also participated in the meeting while representatives from Provincial Governments participated through video conferences. Projects related to Health and Transport & Communications were presented in the meeting.

A project related to Health was presented in the meeting namely “Strengthening the existing capacity of NIH for effective response against COVID 19 pandemic in Pakistan” worth Rs. 450 million was presented by MoNHSSRC. The revised project proposed to be financed through the financial support of Asian Development Bank (ADB) and Agence Française de Développement (AFD) Group funds through National Disaster Risk Management Fund (NDRMF) under Grant Implementation Agreement.

The project envisages strengthening the public health system and diagnostic capacity in response to the COVID-19 pandemic in Pakistan for improving public health surveillance and response system to help mitigate the impact of such disease and burden on the poor and vulnerable population of the country. The project was approved all as foreign aid.

Four projects related to Transport & Communications were presented in the meeting. The First project presented namely “Construction of Raad from Sibi-Talli (20 km) and Kohlu – Rakhni (80 km)” is worth Rs. 6,066.960 million approved in the meeting. The forum observed that the original project was approved during LFY at an estimated cost of Rs. 4 billion. The project was approved at Rs. 6,066.960 million at 50:50 cost-sharing between Federal and Provincial Governments. The ACSD GoB was directed to facilitate the department of C&W in capacity building.

The second project of T&C was considered and approved is important for the people of Karachi namely “Revised PC-I for Rehabilitation of KPT & Rail Connectivity Project (Phase-I)” worth Rs. 2,652.016 million approved by the forum. The revised Project envisages rehabilitation of existing track of critical section of PR from KPT to Karachi Cantt and provision of new track for connectivity with ML-I.

The existing track on the section has outlived its designed life for a long. The rails laid are 75R, 90BSS, and 90R types that are overaged and of obsolete type and sleepers are mostly wooden and steel trough, which is mostly unserviceable. The proposed scope involves CTR works to be carried out with 54-kg rails and modern 2750mm sleepers and W-14 type elastic fastenings.

This design has been selected with the intention that in case ML-1 Project is materialized these rails and sleepers/fittings could be accommodated being of the same design to have a uniform track infrastructure.

The third project of T&C presented namely “Punjab Arterial Roads Improvement Programme (PARIP)” is worth Rs. 129,944.155 million referred to ECNEC for further approval. The location of the project is District Bahawalnagar, Bahawalpur, Layyah, Jhang, Toba Tek Singh, Vehari, Okara, Pakpattan, and Sahiwal. The executing agency of the project is Planning and Development Board, Punjab.

The sources of financing are the government of Punjab (Rs. 14,163.91 million), Asian Development Bank (ADB) (Rs. 64,972.08 million), and Asian Infra Investment Bank (AIIB) (Rs. 50,808.16 million). The project involves the construction of 535 km of dual carriageway highway section between various cities in the Punjab province. The project would involve rehabilitation of the existing carriageway as well as new construction of a second carriageway within the Right of Way available and acquired where needed.

The project will improve the transportation system through up-gradation and dualization of the highway network. The scope of works includes the construction of bridges, culverts, retaining walls, drainage works, roadside facilities, and allied works. The scope also includes land acquisition, resettlement, shifting of utilities, the establishment of a Project Management Unit, Quality Control Lab, a state-of-the-art Asphalt Mix Design & Quality Assurance Lab, Capacity Building.

The project will endeavor to build the capacity of the C&W department through soft components like training and financing different initiatives. The Government of Punjab was directed to share the principle of telling policy and O&M projection for information of the ECNEC.

The forum was also considered the project namely “Construction of Northern Section of Ring Road (Missing Link) from Warsak road to Nasir Bagh Road” with the total cost of Rs. 16,489.198 million and the Government of KP was directed to checkout effective implantation plan, explore the sustainability of the proposed ring road by imposing toll collection and construction component need to be separated from the already approved project of land acquisition. The project will be re-considered in the next CDWP meeting.

The forum also accorded a concept clearance to “Integrated Social Protection Development Program (ISPDP)” submitted by the Finance Division at the cost of 627 million US dollars.

Source: Pro Pakistani

The Rawalpindi Chamber of Commerce and Industry (RCCI) has urged Rawalpindi Development Authority (RDA) to establish industrial and economic zones along the Ring Road.

If industrial zones are not established, the status of the Ring Road would be reduced to a single road.

The relocation of goods transportation, company warehouses, and the general bus stand at Ring Road will help in restricting the heavy traffic to enter the city. The establishment of industrial zones will boost local industry and SMEs, increase economic activity and create employment opportunities.

These remarks were made by RCCI President, Nadeem Rauf, who called on Chairman RDA, Tariq Mahmood Murtaza, in his office here on Monday. The delegation included group leader and former President, Sohail Altaf, senior vice president, Asim Malik, vice president, Talat Awan, and former president, Asad Mashhadi.

Chairman RDA briefed the delegation on ongoing development projects in the city, especially the Ring Road project. He said that the suggestions of Rawalpindi Chamber have been incorporated for the development and beautification of the city.

Encroachments from the city can be permanently addressed by adopting the long-term policy. The Ring Road project will be inaugurated on December 25. President Nadeem Rauf said that Ring Road is an important development project of the city and the business community considers it as a game-changer.

RCCI through its platform has always emphasized the establishment of industrial and economic zones along the Ring Road. He said that the city has become densely populated. The relocation of cottage industry, furniture, show market, bus/truck terminals, and markets can only reduce the congestion in the city.

“Parking is an important issue,” he said. New parking plazas should be constructed on College Road and Iqbal Road, he suggested. He added that a core committee consisting of the Chamber and RDA be set up to review the progress of the projects. He assured full cooperation and extended all kinds of assistance to RDA to eliminate encroachments from the city.

Source: Pro Pakistani