Chowrangi

After banking and telecommunications sector, it seems that international investors are now eyeing energy sector in Pakistan. In a recent development Ashmore Energy International (AEI), a Cayman Islands company controlled by funds managed by UK’s Ashmore Investment Management, acquired controlling assets of DHA Cogen Limited, Karachi.

DHA Cogen Limited (DCL) (according to their web site) is a Public Limited Company incorporated in Karachi on January 19, 2003. DCL is a joint venture between Defence Housing Authority, Karachi (DHA) and Sacoden Investments, Singapore (SI). Its existing Board of Directors comprises representatives of both DHA and SI in the ratio of two to four respectively with another member nominated by Faysal Bank Limited, owing to their placement in the Share capital of the Company.

DHA Cogen Limited was primarily formed to build and operate a Power Generation and Water Desalination Complex to fulfill the needs of electricity and potable water of the entire Defence Housing Scheme of Karachi. Net Capacity of Power Plant is approximately 94 MW with a Gross Capacity of 110MW. Sui Southern Gas Company provides Natural Gas to generate electricity, which is then passed on to KESC to be redistributed in DHA. Water Desalination plant is intended for the purification of 3 million gallons of seawater daily.

Ashmore Energy International has a history of investing in geo-politically troubled areas. In past year it has extensively purchased assets in Brazil, Bolivia, Peru, Colombia and Chile from energy companies like Shell, Suez Energy International, Promigas, Prisma Energy (subsidiary of Enron) and GasAtacama.

All of the South American countries have one common denominator, Energy Crisis.

So, is DHA Cogen Limited really prospective enough to tempt Ashmore Energy International in making its first investment in South Asia? or is something missing from the picture? Let’s see…

Other posts by Kashif Aziz

• Pakistan faces severe Power Crisis - August 27th, 2008
• NATO Vehicles Burned at Maripur Karachi - August 27th, 2008
• Dr. Aafia Siddiqui and her son interrogated by Afghans - August 25th, 2008
• Ministry of Foreign Affairs updates on Dr. Aafia Siddiqui - August 23rd, 2008
• Pervez Musharraf resigns as President of Pakistan - August 18th, 2008
• Clarification by US Consulate in Pakistan on Dr. Aafia Siddiqui's Abducation - August 17th, 2008
• Investors from Pakistan flock to Ajman - August 16th, 2008
• Impeachment of Pervez Musharraf: Nawaz Sharif should stand firm - August 16th, 2008
• ITCN 2008: IT Exhibition or Fun Fair? - August 14th, 2008
• Nayyar Zaidi writes about his Detention and Defense - August 12th, 2008