PC RECEIVES TEN (10) SOQs FOR PRIVATISATION OF FAISALABAD ELECTRIC SUPPLY COMPANY (FESCO)

Islamabad, April 6, 2006

The Privatisation Commission (PC) has received ten (10) Statements of Qualification (SOQ) from strategic investors or consortia of strategic/financial investors interested in acquiring 56% interest in Faisalabad Electric Supply Company (FESCO) including  the management control in view of the improvements inthe transaction structure, which include three (3) already pre-qualified parties who have reaffirmed heir interest in the transaction besides seven (7) fresh SOQs. FESCO is first and one of the best  distribution company being offered for privatisation. PC invited fresh EOIs on February 22, 2006.

The fresh SOQs have been received from 1. Consortium of Noor Financial Investment Company (Kuwait) and National Industries Group (Holding) Kuwait, 2. Sapphire Group (Pakistan) comprising Sapphire Fibers Limited, Sapphire Textile Mills Limited and Diamondabrics Limited, 3. Consortium of Azgard-9 Limited and Jahangir Siddiqui and Company Limited (Pakistan), 4. Consortium of Pak Elektron Limited (Pakistan), Burhan Oils Services (Kuwait) and AKD Securities (Pakistan, 5. Consortium of Orient Power Company Limited, National Logistic Cell and Pak Oman Investment Company Limited (Pakistan), 6. Consortium of Crecent Power Tek Limited, 7. Nishat Group while three already pre-qualified parties, which have reaffirmed their interest in the transaction include, 8. Consortium of Rupali Polyester Limited (Pakistan) including Pupali  Polyester Limited, Rupafil Limited, Spintex Limited and Rupali Naylon (Pvt) Limited, 9. National  Power Generation and Supply Company (Pakistan) and 10. Consortium of UBL and AES.

Faisalabad Electric Supply Corporation (FESCO) is one of the electricity distribution companies created from the unbundling of the Power Wing of Pakistan Water and Power Development Authority (WAPDA) and serves approximately 1.8 million customers in the central region of the province of Punjab. The company with sales of about US $ 400 million, low distribution losses and high rate of bill collection is one of the  best electricity distribution companies in Pakistan. Being in the heart of the industrial area of Pakistan, FESCO sells nearly half of its electricity to the industrial and bulk consumers.