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

• Urgently Wanted : Federal Ministers - November 19th, 2008
• GEO TV Transmission blocked in Karachi? - November 17th, 2008
• American meat exporters using fradulent halal certificates - November 14th, 2008
• The case of Khanani and Kalia - November 10th, 2008
• Alcohol Exports Bring $220 Million To Pakistan - November 9th, 2008
• Open Letter of Appreciation to Government of Pakistan - November 5th, 2008
• Earthquake Strikes in Balochistan: More than 250 dead, 20,000 displaced - October 30th, 2008
• Pity the Nation - October 26th, 2008
• Lab Pay Aati Hai Dua .. Ban Kay Tamanna Meri - October 16th, 2008
• Predictions of the Century: The Fate of Sarah Palin, and Asif Ali Zardari and United States of America - October 12th, 2008