ISLAMABAD - Shanghai Electric Power, new proposed shareholder of K-Electric, will invest $9 billion for improving and value adding in the K-Electric power infrastructure including transmission, distribution and generation.

The disclosure was made by a representative of the company here in a high level meeting of the committee constituted by the Cabinet Committee on Energy (CCE) for discussion on K-Electric Transaction. The committee meeting was chaired by the Federal Minister for Water and Power Khwaja Asif and was attended by the Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, the Privatisation Commission chairman and Board of Investment chairman. Senior officials of the Ministries of Water and Power, Petroleum & Natural Resources, Finance and Law and Justice Division also attended the meeting.

Shanghai Electric Power, one of the largest companies in power sector in China, also shared their profile and international expertise and similar experience. The government appreciated and welcomed the investment and change of shareholder in K-Electric. The government also highlighted the need for K-Electric to synchronise their plans of investment to bring up the infrastructure and the generation facilities, with the overall national plan for minimising and eliminating load shedding in the country by 2018 The government ensures its support to the efforts for improvement in the quality and quantity of service to the consumers of K-Electric.

It is pertinent to mention here that Shanghai Electric Power Company Limited, earlier this week, announced that it had received approval from the Competition Commission of Pakistan (CCP) to acquire K-Electric Limited. The Abraaj Group, who owns 66.4 percent of K-Electric’s along with management control, in October announced that one of its companies, KES Power, had reached an agreement to divest its stake in K-Electric, to Shanghai Electric. Shanghai Electric is a state-owned enterprise controlled by China’s State Power Investment Corporation, a Fortune 500 company.