Key Takeaways
- The Privatisation Commission received 10 Expressions of Interest for the acquisition of IESCO.
- Investors from Turkey and leading Pakistani business groups have shown interest.
- The privatisation aims to improve operational efficiency and reduce power sector losses.
The Privatisation Commission (PC) has received 10 Expressions of Interest (EOIs) from prospective investors seeking to acquire 51 percent to 100 percent shareholding in Islamabad Electric Supply Company (IESCO).
The investors include Aktor Elektrik Enerji Yatirimlari San. ve Tic. A.S. from Turkey, GenveraEnerji A.S., Cengiz Enerji Sanayiive Ticaret A.S., Engro Energy Limited, Artistic Milliners (Private) Limited Consortium, Hub Power Holding Limited Consortium, Sapphire Fibers Limited, Novatex Limited, Bestway Cement Limited, and Hasnaat Brothers Construction Co. (Pvt) Limited Consortium.
Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman, Privatisation Commission, stated, 'This is an important milestone in the privatisation of DISCOs. The strong response received for IESCO reflects that investors have confidence in the potential of Pakistan’s electricity distribution sector and in the Government’s commitment to a transparent, competitive and professionally managed process.'
IESCO is one of three electricity distribution companies in DISCOs Batch-I, alongside Faisalabad Electric Supply Company (FESCO) and Gujranwala Electric Power Company (GEPCO).
The PC has received an overwhelming response from domestic and international investors for the privatisation of IESCO, with investors from Turkey and several of Pakistan’s leading business groups submitting their interest.
The Expressions of Interest and Statements of Qualification (SOQs) submitted by the interested parties will now undergo a comprehensive evaluation against the approved prequalification criteria.
Applicants meeting the prescribed requirements will be prequalified and invited to the next stage of the transaction, where they will be granted access to the Virtual Data Room (VDR) to undertake detailed buy-side due diligence.
The privatisation is intended to improve operational efficiency, modernise distribution infrastructure, strengthen customer service, and reduce losses to support a more financially sustainable power sector, which, over time, will lead to more affordable and reliable power for consumers.
This is an important milestone in the privatisation of DISCOs. The strong response received for IESCO reflects that investors have confidence in the potential of Pakistan’s electricity distribution sector and in the Government’s commitment to a transparent, competitive and professionally managed process.
Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman, Privatisation Commission
