ISLAMABAD : The Power Division’s consultants, along with the Power Planning & Monitoring Company (PPMC)—a subsidiary of the Power Division—have commenced review of company-level due diligence reports submitted by Financial Advisors (FAs), as part of the ongoing privatisation process for three power distribution companies (DISCOs), sources told Newzshewz.
According to sources, the Cabinet approved the outright privatisation of three DISCOs—Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO)—in its meeting held on August 13, 2024, marking the first phase of the privatisation initiative.
The second phase will include Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Hazara Electric Supply Company (HAZECO). Meanwhile, Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO), and Peshawar Electric Supply Company (PESCO) will be offered under a Concession Model through long-term agreements. Tribal Electric Supply Company (TESCO) and Quetta Electric Supply Company (QESCO) will be retained by the government.
The Power Division, with support from the World Bank under Non-Lending Technical Assistance (NLTA), has completed a consolidated report detailing key deliverables, which has been submitted to the Privatisation Commission. The Power Division has met the Conditions Precedent (CPs) set by the Cabinet Committee on Privatisation (CCoP) and the Government of Pakistan, along with additional requirements identified by the World Bank as of January 31, 2025.
The Financial Advisor for Phase-I DISCOs was appointed by the Privatisation Commission, with the Financial Advisory Services Agreement signed on February 11, 2025. The process is structured into four phases:
Phase I: Sector-level due diligence, inception report, market sounding, and global experience review – completed by March 18, 2025.
Phase II: Company-level due diligence (legal, technical, financial, environmental, and HR) – reports submitted May 8, 2025, currently under review.
Phase III: Transaction preparation, including restructuring plans and preliminary financial modeling – due June 20, 2025.
Phase IV: Transaction implementation, including investor roadshows, information memoranda, bidder pre-qualification, bidding documents, contract awards, and financial closure – targeted for completion by January 15, 2026.
Sources confirm that deliverables for Phase I have been submitted and reviewed with input from the Power Division. Phase II deliverables are now being assessed by the Division’s consultants and PPMC for further feedback. Ends
