ISLAMABAD: The Standing Committee of Senate on Power was apprised on Tuesday that an investment of 474 billion rupees has been made in K-electric since its privatization in 2005.
The senate committee met with Saifullah Abro in the chair and was informed that first direct investment of 700 million dollars was made in K-electric after its privatization.
Chief Regulatory Affairs of K-Electric Imran Qureshi informed the committee that the company was first established in 1913 and nationalized in 1952. It has nearly 3.4 million customers and its first revenue in 2012 after it was privatized.
He said that the company was currently having six power plants including Korangi Gas Turbine, Korangi Combined Cycle, SITE Gas Turbine, BQPS II, Port Qasim, and BQPS III, having a total capacity of about 1870 MW.
Abro inquired that despite producing 1,870 MW with an additional of 1,100MW from the government, why the company failed to meet the energy needs of Karachi.
He expressed dissatisfaction over the briefing and directed the relevant officials to give a comprehensive meeting in the next hearing. He also showed his displeasure over the absence of the Federal Minister for Energy (Power Division) and CEO, K-Electric in the meeting. The committee decided to discuss the matter with the Senate Chairman.
K-electric privatization briefing
The committee was also briefed by the privatization commission about the K-electric privatization. The officials said that the government approved a plan for the privatization and commercialization of the company in 1992 as it was making losses of billions.
They said that the privatization process was started in 2001 but could not complete as there were no suitable buyers to take the company. The process once again started in 2003 and this time the contract was awarded to a consortium led by Hassan Associates with a bid of 1.65 rupees per share.
The committee chairman directed the privatization commission to submit all the bidding details in the next meeting.
