Pakistan China to ink $1.77 billion mega deal

Pakistan China to ink $1.77 billion mega deal

ISLAMABAD - China’s Shanghai Electric Power (SEP) is expected to acquire K-Electric from the financial crisis-hit Dubai-based Abraaj Group in the second half of 2019, according to a private media outlet link .

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 National Electric Power Regulatory Authority (NEPRA) recently revised the power tariff upwards for end-consumers by Rs2.15-3.63 per unit.

This (revised tariff) is a major breakthrough in the execution of the business deal, remarked K-Electric Chairman Ikram Sehgal.

“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.”

Other issues were petty, including how much K-Electric’s debt would be removed from the books, he said.

To recall, NEPRA had revised down the tariff for end-consumers by Rs3.50 to Rs12.07 in March 2016 for the next seven years under the multi-year tariff (MYT) 2016-23.