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New projects.

Sintra Fund a global fund specializing in equity investment - has signed an equity participation agreement to invest $750,000 in World call, a smart-card payphone operator in Pakistan. McDonald's Corp. has announced plans for development of their restaurants in Lahore and Karachi by the end of 1998. In Lahore, their partner will be Mr. Ghouse Akbar of Akbar Group of Companies. Guy Ullens, the President and Chief Executive of Artal Group, has said that the Group would in vest $110 million in Pakistan over a period of three years, and establish 30 Kentucky Fried Chicken restaurants.

Union Texas

Union Texas Petroleum, USA has decided to take 10% of the stake in Liberty Power project. An announcement by Infrastructure Capital Group, (ICG) Washington, said the UTP would provide and operate maintenance services of the project. Other Liberty shareholders include: Tenaga National of Malaysia 40%, ICG 25%, Commonwealth Development Corporation (CDC) 5%, Asia Infrastructure Development Co. 10%, Energy 2%. The total equity is estimated at $79.5m. Total debt financing, according to ICG, would amount $186m including contingencies. Of these CDC will provide $20m and AIDEC 37 million. A consortium of banks, with ANZ, as financial advisor will extend debt financing.

About 75% of the first phase 235MW project has been completed with all turbines and major equipments delivered at the site. The power generation capacity will finally be raised to 470MW. UTP's investment, sources said, will help wrap up equity and debt financing for the first phase project cost of $265m. ICG announcement said that transmission line linking the power plant to national grid is expected to be completed by end May.

Sintra Fund

Sintra Fund a global fund specializing in equity investment - has signed an equity participation agreement to invest $750,000 in World call, a smart-card payphone operator in Pakistan. World Call, already operating in Lahore, Multan, Gujranwala and Kasur, a licensed payphone operator, plans to install around 1,500 phones by the end of the year and 10,000 by the year 2000. It is a subsidiary of First Capital Securities Corporation (FCSC).

PDS LTD - Sumitomo Joint Venture

PDS Ltd. a company of the Arfeen Group has entered into a joint venture agreement with Sumitomo Corporation of Japan as partners in Data Network Services marketed under the brand name of SUPERNET. The agreement is not restrict ed to paper and the financial transaction has already taken place and equity has been brought in. Supernet has already been marketing some services and the full scale launching will come in the next few weeks.

Another agreement has been reached between the World Trade Centre, whereby Sumitomo Corporation and Mitsubishi Research Institute will collaborate in the designing, development and construction of the EXPOCENTER Project at Port Qasim. The project envisages a total capital outlay of over $200 million during the next 3 to 4 years and will be a model of environment friendly town planning.

McDonald's in Lahore and Karachi

McDonald's Corp. has announced plans for development of their restaurants in Lahore and Karachi by the end of 1998. In Lahore, their partner will be Mr. Ghouse Akbar of Akbar Group of Companies. In Karachi, their partner will be Amin Mohammad Lakhani. In Lahore, McDonald's partner will be Ghouse Akbar, Akbar leaves his family's successful aviation business for a future under the Goldan Arches.

30 Kentucky Fried Chicken Restaurants

Guy Ullens, the President and Chief Executive of Artal Group, has said that the Group would invest $110 million in Pakistan over a period of three years, and establish 30 Kentucky Fried Chicken restaurants.

Artal plans to work with the local poultry industry to introduce the know-how and establish international standards. This would assist the Pakistan industry to upgrade its quality and productivity not only to meet the local requirements, but also to compete in the international markets of the Middle East, Far East, Central Asian Republics. The Group in this way plans to encourage both the rural and urban employment.

The Artal Group controls the overall operations of KFC in Pakistan. Having entered the food business as a long-term strategic investors with interest in other areas, its aim is to build a financially sound base in Pakistan with commitment to excellent quality products and brands, dynamic young management and the necessary transfer of technology and skills required to develop these sectors. Kentucky Fried Chicken (KFC) is the world's second largest fast food chain and the largest fried chicken restaurant chain, with almost 10,000 outlets in more than 70 countries.

Pak, Japanese Firms Sign Two Ventures

The signing of two separate joint ventures, one on the Information Super Highway worth Rs.600 million and the other relating to the design, development and construction of Expocentre Project at Port Qasim worth $200 million, between PDS Ltd, a company of Arfeen Group, and Sumitomo Corporation of Japan was announced.

PDS Ltd. and Sumitomo have entered into a joint venture as partners in Arfeen Group's Data Network Services marketed under the brand name of Supernet. This is the first information technology related joint venture with Japan. The agreement is not restricted to paper. The financial transaction has already taken place, the equity has been brought in. Supernet has already been marketing some services and the full scale launch will come in the next few weeks.

Salman Ansari, the Chief Executive of Supernnet PDS Ltd, said that it was a historical moment for private telecommunications sector in Pakistan. Sumitomo's investment in Supernet would give further confidence to international investors to invest in Pakistan, he said. Supernet is a government licensed data network operator providing a complete range of domestic and international data network services in Pakistan.

Currently, Supernet is establishing one of the most comprehensive Data Networks in Pakistan. All the network offerings put together provide a comprehensive end-to-end solution, for any network requirements.

The Supernet spectrum of services include range of VSAT (Satellite based) service, national and international X.25 services, full featured access to Internet for Large Corporate as well as individual dialup accounts, and various value added communication services like Enhanced Fax Services, X.400 based secured electronic massaging services to cater for today's ever-growing business communication requirements.

Dam on Swat River

WAPDA plans to build Munda Dam on Swat River at a cost of Rs.27.9 billion to meet the ever in creasing needs of cheaper hydel power and water for irrigation. The project on completion will produce 600MW of cheap hydel power and provide irrigation supplies to 29,380 acres of virgin land on the banks of Swat River besides effective means of protection to cultivate and inhabitate lands on either sides of river and further downstream along the banks of Kabul River near Nowshera.

Site of the proposed dam will be near the existing Munda Headwork situated 30 miles North East of Peshawar. The dam will be earth core rock-fill structure with a height of 586 feet. The project will provide job opportunities to thousands of technical and supporting staff during its preconstruction and construction period as well as for its operation and maintenance.

It will also provide fish farming and recreation facilities. As such Munda dam project will greatly contribute to environmental and socio-economic uplift of the area as well as the people of the Mohammad Agency and the districts of Peshawar and Charsada. The pre-feasibility study of the Munda Dam project was prepared by WAPDA in November 1992 last. The concept clearance of the project by the Federal Government was accorded in March, 1993. Earlier a preparatory study team of Japan International Cc-operative Fund has also visited Pakistan in September last and held a series of meetings with the WAPDA, NWFP and high officials of federal government to finalise the scope of work.

Hydrocracker Plant

The hydrocracker plant of National Crescent Petroleum Ltd. (NCPL) has been assessed as highly feasible in terms of foreign exchange savings and government revenues. "Over the period of its operational life, the project will help save foreign exchange amounting to 5.5 billion dollars and will pay tax to the national exchequer to the tune of Rs. 150 billion."

The hydrocracker project is to be undertaken by Crescent Refining and Marketing Company Ltd. (CRMC) of Qatar and PERAC through a joint venture company NCPL. A 1.65 million tonnes a year plant would be built in the Korangi area. The hydrocracker is to be built under a lump-sum rum key contract which has already been awarded to Technip, who has nominated Snamorogetti as a sub-contractor. The NCPL estimates the total cost to be nearly $750 million.

South Korean Investment

The South Korean multinational, Hyundai Corporation, has indicated to initially invest $250 million in infrastructure projects including ports, power generation, telecommunication and developments of motorways in Pakistan.

This was disclosed by Executive Vice President Hyundai Corporation Mr. Chung, Chai Kwan and 22-member Korean Economic Mission by the president Pak-Korea Friendship Society, Mr. M. Iqbal Mangrani at his residence. The Korean delegation having key areas of interest in construction, cement and power plants, telecommunication, power generation etc. is being led by Deputy Minister for Industry and Technology, Ministry of Trade, Industry and Energy, Mr. June-Suk Choo.

He said that Pakistan has great potential and development opportunities and his corporation would like to participate in those development activities which were capital intensive. Hyundai is involved in vast areas of industrial activities beginning from auto manufacturing to hi-tech telecommunication, ship building and construction of power, cement and other plants.

Pak-Japan Joint Venture

About 10-15 joint ventures between Pakistan and Japan are likely in near future in textile, chemicals and automobile sector.
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Title Annotation:foreign investments in Pakistan
Publication:Economic Review
Article Type:Industry Overview
Date:Jun 1, 1997
Words:1596
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