PC Extends  EOI-RSOQ Date for Faisalabad Electric Supply Company (FESCO)

Islamabad, February 10, 2003

Privatisation Commission has extended the last date for receiving Expression of Interest from qualified strategic investors for transfer of the management control of Faisalabad Electric Supply Company (FESCO) through acquiring 56 % interest of the company by March 31 2003. The date has been extended on the request of various parties to facilitate them and to ensure maximum participation. Expressions of Interest (EOI) have been invited from the interested parties/ consortia. A Request for Statement of Qualification will be sent to those who will submit their EOIs. Parties who have already been provided with the RSOQ need not submit a fresh EOI. An early submission of EOI will allow maximum time for interested parties to prepare their RsoQ. 

Faisalabad Electric Supply Company (FESCO) is one of the electricity distribution companies created from unbundling of the Power Wing of Pakistan's Water & Power Development Authority (WAPDA). The company incorporated in 1998 as a public limited company serves approximately 1.8 million consumers of various categories spread over the central Punjab region of Pakistan. International Finance Corporation (IFC) is the Financial Advisor for this transaction. An Information Memorandum containing more details on FESCO and the transaction is available free of cost for the desirous parties at PC.

PC had earlier invited parties for appointment as Financial Advisory Consortium (FA) to assist the Government of Pakistan in privatizing Peshawar Electric Supply Company (PESCO). The Government of Pakistan (GOP) is considering the privatisation of Peshawar Electric Supply Company Limited (PESCO), which is also a fully owned GOP Company formed as a result of the unbundling of the vertically integrated power wing of Pakistan Water and Development Authority (WAPDA) into fourteen independent companies i.e. four Thermal Generation Companies (GENCOs), one National Transmission and Dispatch Company (NTDC) and nine Distribution Companies (DISCOs) for corporatisation, commercialization and subsequent privatisation.  The Company was incorporated as a public limited company under Pakistan Companies Ordinance, 1984 in September 1998 and started commercial operation independent of WAPDA on March 01, 1999. It is one of the nine DISCOs responsible for supply and distribution of electricity in the North Western Frontier Province (NWFP) of Pakistan excluding the tribal areas.

PC received eight EOIs from Aqeel Karim Dhedhi Securities (Pvt) Ltd., BNA Capital Management, Faysal Bank Limited, Global Securities Limited, Khadim Ali Shah Bukhari & Co. Ltd., SG Conseil Pays Emergents, Trust Investment Bank Limited and Union Bank Limited/AMZ Securties (Pvt) Ltd. However, five of them submitted their Technical and Finanacial Proposals for pre-qualification, which include Faysal Bank Limited, Khadim Ali Shah Bukhari & Co, Ltd., SG Conseil Pays Emergents, Trust Investment Bank Limited, Union Bank Ltd./ AMZ Securities (Pvt) Limited. Divestiture of various power sector generation and distribution assets to allow activities to be undertaken by the private sector; improvement in the efficiency of the Pakistan Power Sector through competition, accountability, managerial autonomy and profit incentives; and the generation of required resources through the divestment process are the objectives of the Government for the privatisation of power sector.