ISLAMABAD: The Financial Advisor is tasked to structure the transaction of three power Distribution Companies (DISCOs) as per the status of completed assignments and PC will seek approval from Cabinet Committee on Privatisation (CCoP) before taking the transaction to the market, well informed sources told Business Recorder.
According to the Minister for Power, Sardar Awais Ahmad Khan Leghari, three DISCOs; i.e., Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO) and Faisalabad Electric Supply Company (FESCO) will be privatised by the end of the current year.
In a communication, the Ministry of Privatisation referred to Ministry of Energy’s (Power Division) letter of November 29, 2024, and stated that the Request for Proposal (RFP) including scope of work and evaluation criteria for the hiring of Financial Advisor (FA) for Private Sector Participation (PSP) in three DISCOs of first batch (FESCO, GEPCO and IESCO) were firmed up with consultation of Power Division and the World Bank. Subsequently, the plan was circulated among the panel of Pre-qualified Financial Advisors on the strength of PC on 20th and 29 August 2024. The hiring of FA for the transaction is in progress.
PM Shehbaz expresses concern over delays in Discos’ CEO appointment
On December 27, 2024, Prime Minister Shehbaz Sharif presided over a meeting on DISCOs’s performance and was updated on the progress of their privatisation.
The sources said the World Bank has firmed up its report on the proposed privatisation of three DISCOs and shared with the concerned stakeholders including the Privatisation Commission, adding that Power Division shared World Bank’s Report and actions taken so far on it.
The sources said, Privatisation Commission has also gone through the details of World Bank Report and commented that it understands that completion/implementation (including required approvals) of Task in World Bank report are to be implemented by Power Division (aspect of CPs) through concerned stakeholders; i.e., DISCOs, CPPA-G and NEPRA etc. by January,31 2025.
Financial Advisor during due diligence will review the tasks implemented and suggest adjustments/ amendments where required. Further, FA will structure the transaction according to the status of completed tasks and PC will seek approval from Cabinet Committee on Privatisation (CCoP) before taking the transaction to the market.
With respect to review of eligibility criteria rules and investor qualifications PC will review these in the light of feedback from prospective investors after the market sounding.
With regards to Terms of References (ToRs) about appointment of Human Resource (HR) and communication firms by Power Division, so far PC has not offered any comments on the ToRs.
Meanwhile, the Executive Committee of Special Investment Facilitation Council (SIFC) has directed Power Division to complete the 9 prior actions already approved by CCoP, aligned with WB deliverables by January 31, 2025.
Privatisation Division is tasked to expedite hiring of Financial Advisor for 1st phase of Privatisation (IESCO, GEPCO & FESCO) and subsequently issue RFP. Meticulous timelines based on milestones are to be presented to SIFC by January 15, 2025.
Copyright Business Recorder, 2024
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