ISLAMABAD: Pakistan’s privatisation drive for the power sector moved into its next phase on Friday after the Privatisation Commission Board approved 10 interested parties for the proposed privatisation of Faisalabad Electric Supply Company (FESCO).
The decision was taken at the board’s 258th meeting, chaired by Adviser to the Prime Minister on Privatisation and Privatisation Commission Chairman Muhammad Ali.
According to the Privatisation Commission, 12 Expressions of Interest were received for FESCO. Following an assessment of the submissions against the approved prequalification criteria, the transaction’s financial adviser recommended 10 parties for advancement to the next stage.
The board subsequently approved the prequalification of Aktor Elektrik Enerji Yatirimlari San. Ve Tic. A.S., Genvera Enerji A.S., Cengiz Enerji Sanayii Ve Ticaret A.S., Engro Energy Limited and Sapphire Fibres Limited.
Other prequalified bidders include the Hub Power Holdings Consortium, comprising Lucky Cement, Kohat Cement and Metro Ventures; Shirazi Investments (Pvt) Limited; and the Maple Leaf Cement Factory Limited Consortium with Kohinoor Textile Mills.
The Pakgen Limited Consortium, comprising Nishat Mills, Nishat Power, Nishat Chunian, Lalpir, Pak Elektron and Kohinoor Energy, has also cleared the prequalification stage, along with Artistic Milliners (Pvt) Limited.
The successful parties will now move to the next stage of the transaction and will be given access to the Virtual Data Room for detailed due diligence before the bidding process progresses further.
FESCO is among the power distribution companies being taken forward under the government’s wider privatisation and power-sector reform programme.
The latest development marks an important procedural milestone in the transaction, with the shortlisted investors now expected to undertake a detailed review of the company’s financial, operational and other relevant information.
During the meeting, the Privatisation Commission Board also approved the reconstitution of its Audit and Risk, Human Resources, Investment and Legal Committees.
The commission said it remained committed to carrying out the government’s privatisation programme through transparent and competitive transactions, with an emphasis on accountability and maximising value for the state.
The government has increasingly focused on restructuring and privatising state-owned enterprises as part of efforts to improve operational efficiency, reduce fiscal pressures and attract private-sector investment into key areas of the economy.
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