ISLAMABAD: The Asian Development Bank (ADB) has asked Lahore Electric Supply Company (LESCO) to submit Audited Entity Financial Statements (AEFS) for the Financial Year 2023-24 and to follow up on auditors’ opinion on compliance.
In a letter to Chief Engineer(Development) LESCO, the ADB’s Principal Energy Specialist has referred to the loan agreement L 3328 and L 3329 between Pakistan and the Asian Development Bank of November 19, 2016 and the project agreement of the ADB with Faisalabad Electric Supply Company Limited (FESCO), Gujranwala Electric Power Company Limited (GEPCO), Hyderabad Electric Supply Company Limited (HESCO), Islamabad Electric Supply Company Limited (IESCO), Lahore Electric Supply Company Limited (LESCO), Multan Electric Power Company Limited (MEPCO), Peshawar Electric Supply Company Limited (PESCO), Quetta Electric Supply Company Limited (QESCO), and Sukkur Electric Power Company Limited (SEPCO).
In terms of Article-II of the project agreement, the Audited Entity Financial statements for financial year ended June 30, 2023 of the Project Implementation Entity Lahore Electric Supply Company, together with an additional opinion on compliance with financial covenants supported by computations are required to be submitted within 1 month after their approval by the relevant authority.
Modernising power distribution infrastructure: $530m loan approved by ADB
According to the Asian Development Bank, these are now outstanding for 7 months from the end of the financial year AEFS was not submitted by the Lahore Electric Supply Company (LESCO).
“We would like to remind LESCO on this issue and its commitment to submit it by February 2025,” said Adnan Tareen, Principal Energy Specialist ADB in his letter.
Additionally, the ADB has sought follow-up on the auditors’ opinion on compliance with financial covenants supported by computations for FY2021 and FY2022, urgently to comply with the legal agreement.
Copyright Business Recorder, 2025
Comments