Why Shanghai Electric not investing in a New Company?
Special Report and Analysis:
Dr Abdul Jabbar Khan, Islamabad
Keep on changing hands is the proposition of K-Electric company that was first privatised to Al-Kanooz Al-Watan, an Arab collaboration way back in the days of General Musharraf, as President, Shaukat Aziz as Prime Minister and Dr Hafeez Shaikh as minister for privatisation. Putting aside the rules, the PM and the minister allowed the privatisation deal in favour of a local well connected businessman in the name of Al-Kanooz Al-Watan, well placed sources confided.
Then in the process was Al-Jamie, Abraj and now the deal is destined to Chinese Shanghai Electric. People of Karachi in particular and he political leadership are oblivion of the disastrous deals. Once the Chinese company is given keys of K-Electric, it would be all very critically difficult to manage the tariff. The deal is once the tariff is further increased from two to thee rupees per unit, the Chinese company will be given possession. It is all sale of Pakistani assets instead of putting new company parallel to K-Electric, the top in Islamabad believe that the existing one be sold.
A mess from the very beginning and not it is stinking. Courtesy non of the organisations at centre like NAB or FIA ever intervened. This was all political decision not to interfere in billions rupees scam. Investigations are desired and demanded by well informed circles. Business leadership too is either ignoran of the consequences of privatisation again or siding with the government in further privatisation to a Chinese. A leadeing businessman demanded if at all Shaghai Electric is serious in acquiring K-Electric, they should come with new proposal, new project and a new venture that would be in the economic interest and fairness of business. Why Competition Commission is conspicuously silent over all these muddy affairs? Is the question being posed.
China’s state-owned Shanghai Electric Power (SEP) is expected to finally acquire K-Electric from the financial crisis-hit Dubai-based Abraj Group in the middle of the second half of 2019. As Chief of Abraj Arif Naqvi is reportedly arrested from UK my divulge the correct information as who truly owns Abraj group from Pakistan. The whole of KESC as formerly known needs thorough investigations by NAB on an urgent basis.
A deal, signed about 32 months ago in October 2016 at $1.77 billion, is likely to be implemented in a few months after the government recently accepted a major demand of the Chinese firm to revise the power tariff upwards for end-consumers by Rs2.15-3.63 per unit, it was learnt.
“This (revised tariff) is a major breakthrough in the execution of the business deal,” remarked K-Electric Chairman Ikram Sehgal while talking to The Express Tribune.
“Naturally, this should speed up the transaction, which has been pending for around three years now,” he said. “I think if no hiccup comes in the way, the Chinese firm will take over the company (K-Electric) by September-October 2019.