The Financial Advisor is in the process of structuring the privatization of three power Distribution Companies (DISCOs), with the Cabinet Committee on Privatisation (CCoP) expected to approve the transaction before it goes to market, Business Recorder reported.

The Minister for Power, Sardar Awais Ahmad Khan Leghari announced that Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO) are set to be privatized by the end of this year.

Sources indicated that the World Bank has completed its report on the proposed privatization and shared it with relevant stakeholders, including the Privatisation Commission. The Power Division has also shared the report and the actions taken thus far.

The Privatisation Commission has reviewed the World Bank report, noting that the completion of tasks outlined in the report is the responsibility of the Power Division and associated stakeholders, including DISCOs and NEPRA, with a deadline of January 31, 2025.

The Financial Advisor will conduct due diligence to assess the implemented tasks and recommend necessary adjustments. The transaction will be structured based on the status of these tasks, with CCoP’s approval required before market engagement.

Additionally, the Privatisation Commission will evaluate eligibility criteria and investor qualifications based on feedback from potential investors following market outreach.

As for the Terms of Reference (ToRs) regarding the appointment of Human Resource and communication firms by the Power Division, the Privatisation Commission has yet to provide comments.

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Meanwhile, the Executive Committee of the Special Investment Facilitation Council (SIFC) has instructed the Power Division to complete nine prior actions approved by CCoP, in line with World Bank deliverables, by January 31, 2025. The Privatisation Division is also tasked with expediting the hiring of the Financial Advisor for the initial phase of privatization for IESCO, GEPCO, and FESCO, and to present detailed timelines to SIFC by January 15, 2025.

During a meeting on December 27, 2024, Prime Minister Shehbaz Sharif expressed concerns over delays in appointing CEOs for the DISCOs and received updates on their privatization progress.

In a recent communication, the Ministry of Privatisation referenced a letter from the Ministry of Energy (Power Division) dated November 29, 2024. This letter detailed the finalized Request for Proposal (RFP), which includes the scope of work and evaluation criteria for hiring a Financial Advisor (FA) to facilitate Private Sector Participation (PSP) in these DISCOs. The plan was shared with a panel of pre-qualified Financial Advisors on August 20 and 29, 2024, and the hiring process for the FA is underway.