Peshawar Electric Supply Company Limited (PESCO) is one of the nine electricity distribution companies (DISCOs) established as a result of the unbundling of the vertically integrated power wing of Pakistan Water and Power Development Authority (WAPDA). The company was established and incorporated in April 1998 as a public limited company under Pakistan Companies Ordinance 1984. It was originally organized to take over the properties, assets, obligations and liabilities of former Peshawar Area Electricity Board (AEB) of WAPDA serving North West Frontier Province (NWFP) of Pakistan including the tribal areas. Subsequently, a new company Tribal Electric Supply Company Limited (TESCO) was spun out of PESCO in June 2002 for supply to tribal areas of PESCO. Presently service area of PESCO includes NWFP excluding tribal areas.

PESCO distributes and supplies electricity to about 1.5 million customers of various categories within its service area. National Electric Power Regulatory Authority (NEPRA) has granted Distribution License to PESCO for distribution and supply of electricity pursuant to the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act). The various categories of PESCO include domestic, commercial, industrial and agricultural served by an extensive distribution system network of 132 kv, 66 kv, 33 kv, 11 kv, 11 kv and low voltage.

 

As part of its programme of privatisation and liberalization of the power sector in Pakistan, the Government of Pakistan (GoP) intends to offer a minimum of 51% interest in PESCO including the management control to a strategic investor or a consortium of strategic and financial investors.

Privatisation Commission has hired a Financial Advisor for the transaction by inviting the interested parties to submit Expressions of Interest. As a consequence of the technical and financial evaluations, Societe Generale Corporate Finance Advisory Services (SGCFA) has been selected as the Financial Advisor. SGCFA has a very good record in the emerging markets – and more specifically in Pakistan. The Financial Advisor is supported by Anjum Asim Shahid & Rehman, Mohsin Tayebaly & Co, National Economic Resarch Associates (NERA) and In Consulting as its financial, legal, regulatory and technical sub contractors. The Financial Advisor and its sub contractors have started the field due diligence in PESCO Head Office, Peshawar. The transaction structure will be finalised by June 2005 and the privatisation of PESCO should be completed by June 2006.