KARACHI: The Economic Coordination Committee (ECC) in a meeting on Friday gave approval to K-Electric (KE) to sign an arbitration accord with Sui Southern Gas Company (SSGC).
This approval will also help in KE’s acquisition by China’s Shanghai Electric Power (SEP). The arbitration process involved a number of agencies, but will be conducted through a single mediator, the officials said.
In 2016, KE had submitted an application for National Security Certificate (NSC) to the Privatisation Commission in a bid to transfer 66.4 per cent shares to SEP.
SSGC management wanted the government to give direction in writing to settle a dispute with KE over receivables through arbitration, the source said.
The board of directors had also authorised the managing director of SSGC to sign an arbitration agreement under the umbrella of the federal government.
However, it also directed the management to properly document and qualify the concerned officials of the ministries involved in the arrangement, including the Special Assistant to Prime Minister (SAPM).