CCOP wants PTCL assets issue resolved

Etisalat holding back $399m as Punjab and Sindh not transferring properties to new owner


ISLAMABAD: The Cabinet Committee on Privatisation (CCOP) on Tuesday asked the Centre to negotiate with Punjab and Sindh for resolution of the issue of PTCL’s property transfer to the company’s new management in order to get the three withheld instalments of $399 million from Etisalat.

The committee, which met here with Adviser to Prime Minister on Finance and Economic Affairs, Shaukat Tarin, in the chair, also approved the reference price for privatisation of National Power Construction Company (Pvt) Limited (NPCC).

Etisalat has so far paid about six bi-annual instalments totalling about $801 million whereas it had to pay nine instalments worth $1.2 billion.

Official sources attending the meeting told The News that negotiations were at an advanced stage and soon Etisalat would pay the remaining amount to the government.

According to the Share Purchase Agreement (SPA), the government is required to provide clear titles of 100 per cent of PTCL properties (3,384 in number) by January 12, 2008. A balance of 161 non-transferred properties (including 71 in Punjab and 45 in Sindh) remains outstanding.

Etisalat withheld payment of instalments to the federal government due to the issue of property transfer from provinces to PTCL’s new management.

In 2006, the government gave the PTCL to the private sector and signed a deal with UAE telecom giant Etisalat for sale of 26 per cent shares at a cost of $2.6 billion along with management control.

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