Banks urged to facilitate power plants' privatization process

ISLAMABAD: Federal Minister for Privatization Muhammad Mian Soomro on Thursday met with the heads of commercial banks and discussed their role in facilitating the privatization process of Balloki Power Plant and Haveli Bahadur Shah Power Plant, ARY NEWS reported.

While flanked by Adviser to PM on Petroleum Affairs Nadeem Babar, the federal minister for privatization said during the meeting that assistance from banks was necessary to encourage investments in the country.

“We need support in the availability of cash for possible bidders of the power plants,” he said while discussing the availability of long and short term loans from banks to the investors.

The investors could bid for the project with a facility of at most 70 percent loans from the banks.

The bank owners asked the government to reconsider terms and conditions for power plants tariff.

It is pertinent to mention here that Muhammad Mian Soomro on March 27 said that the process to privatize national entities is ongoing and no delay is being made in the timeline for privatization of power plants and other entities.

He said that although the government has prioritize provision of health facilities due to the coronavirus pandemic, however, the privatization process is also ongoing as planned.

“We are trying to privatize Haveli Bahadur Shah Power Plant and all information regarding its sale is uploaded on the virtual data room,” he said.

The minister said that they are in constant touch with national and international financial institutions and concerned investment companies. All operations are carried out using the e-filing and e-link processes, he said.

Soomro said that a meeting was held under the Chair of Chairman National Electric Power Regulatory Authority (NEPRA) to decide matters pertaining to the tariff of the power plants to be privatized.