ISLAMABAD: Pakistan’s plan to privatize the Islamabad Electric Supply Company (IESCO) has drawn strong interest, with ten domestic and international investors submitting bids for 51% to 100% ownership and management control as the government moves the electricity distributor into the next phase of the process.
The Expressions of Interest were submitted on Monday, Sept. 21, the deadline set by Pakistan’s Privatization Commission. The applicants include three Turkish energy companies and several major Pakistani business groups.
The Privatization Commission said the response shows continued investor interest in Pakistan’s electricity distribution sector following domestic and international roadshows. The commission also said it welcomed the investors' confidence in the government's plans to reform the country's power sector.
Muhammad Ali, adviser to the prime minister on privatization and chairman of the Privatization Commission, said the strong response was an important step in the privatization of Pakistan's electricity distribution companies.
He said the interest shown by investors reflects their confidence in the potential of Pakistan's electricity distribution sector and in the government's plan to run the privatization process in a transparent, competitive and professional way.
The interested investors are:
1. Aktor Elektrik Enerji Yatırımları San. ve Tic. A.Ş. (Türkiye).
2. Genvera Enerji A.Ş. (Türkiye).
3. Cengiz Enerji Sanayii ve Ticaret A.Ş. (Türkiye).
4. Engro Energy Limited.
5. Artistic Milliners (Private) Limited consortium.
6. Hub Power Holding Limited consortium.
7. Sapphire Fibers Limited.
8. Novatex Limited.
9. Bestway Cement Limited.
10. Hasnaat Brothers Construction Co. (Private) Limited consortium.
The commission will now work with investors who meet the required conditions during the due diligence process. It will also work toward creating clear and predictable rules for the company after privatization.
The government says the privatization is designed to improve the company's operations, upgrade its electricity distribution system, improve customer service and reduce losses. Officials say these changes are intended to make the power sector more financially stable and, over time, provide consumers with more affordable and reliable electricity.
The EOIs and Statements of Qualification (SOQs) submitted by the investors will now be carefully reviewed against the approved requirements for prequalification. Investors that meet the required standards will be prequalified and allowed to move to the next stage.
They will then receive access to a Virtual Data Room (VDR), where they can conduct a detailed review of IESCO's business and financial information as part of the due diligence process. IESCO is one of three electricity distribution companies included in the first batch of DISCO privatizations.
The other two are the Faisalabad Electric Supply Company (FESCO) and the Gujranwala Electric Power Company (GEPCO). The commission said 10 investors have been prequalified for FESCO, while 11 EOIs were received for GEPCO. Those applications are currently being reviewed for prequalification.
The Privatization Commission said it remains committed to an open, transparent and competitive process. It said the privatization is being carried out as part of the federal government's wider plans to reform Pakistan's power sector.
