ISLAMABAD: Pakistan’s Privatization Commission announced on Friday that it has shortlisted 10 interested parties to bid in the sell-off of state-owned power distributor Faisalabad Electric Supply Company (FESCO), with the list of prequalified bidders including three Turkish companies.
FESCO is one of three state-owned power distribution companies that are included in the first batch of the government’s privatization program. The other two are the Gujranwala Electric Power Company and Islamabad Electric Supply Company. Islamabad has invited investors to acquire between 51 percent and 100 percent stakes along with management control in these companies.
Pakistan seeks to privatize these state-owned companies to reform its debt-burdened power sector. Islamabad hopes investment and management from the private sector will help improve the power sector, which has long suffered from electricity losses, weak recoveries, and mounting circular debt.
Pakistan invited Expressions of Interest (EOIs) from investors seeking to acquire 51 percent to 100 percent stakes in FESCO and two other power distribution companies in May. The PC said earlier this month that 12 bidders showed interest in acquiring stakes in FESCO, including three consortia from Türkiye, one investor group from China and eight Pakistani business groups.
“Following evaluation of the submissions against the approved prequalification criteria, the Financial Adviser recommended 10 Interested Parties (IPs) for prequalification and progression to the next stage of the transaction,” the commission said in a press release after its 258th board meeting.
The list of bidders prequalified by the PC include three Turkish companies, Aktor Elektrik Enerji Yatirimlari San. Ve Tic. A.S, Genvera Enerji A.S and Cengiz Enerji Sanayii Ve Ticaret A.S. All three are Turkish energy companies.
The other bidders include local consortia Engro Energy Limited, Sapphire Fibres Limited Hub Power Holdings Consortium, Shirazi Investments (Private) Limited, Maple Leaf Cement Factory Limited Consortium, Pakgen Limited Consortium and Artistic Milliners (Private) Limited.
PC said that the shortlisted bidders will now proceed to the next stage of the transaction, including access to the Virtual Data Room for detailed buy-side due diligence.
“The Board reaffirmed its commitment to advancing the Government’s privatization program through transparent, competitive and professionally managed transactions, with a focus on accountability and value maximization for the Government and the people of Pakistan,” it added.
