The privatization process for the Faisalabad Electric Supply Company (FESCO) has drawn strong interest from domestic and international investors, with 12 parties submitting expressions of interest for a 51-100% stake, along with management control, the government said on Friday.
The Privatization Commission received the expressions of interest on the closing date, marking the next stage in the government’s plan to privatize electricity distribution companies (DISCOs). The investors comprise eight Pakistani groups, three Turkish companies and one Chinese company.
The Turkish investors are Aktor Elektrik Enerji Yatırımları; Genvera Enerji, part of Celik Group; and Cengiz Enerji. China’s Jiang Xi Electric Power Construction also submitted an expression of interest.
Pakistani bidders have been identified as Engro Energy; Sapphire Fibers; a consortium of Hub Power Holdings and Lucky Cement; Shirazi Investments of the Atlas Group; a consortium of Maple Leaf Cement and Kohinoor Textile; a consortium of Nishat Mills and Pak Elektron; Artistic Milliners and K-Electric.
“This is an important milestone in the privatization of DISCOs,” said Muhammad Ali, adviser to the prime minister on privatization and chairman of the Privatization Commission. He said the strong response to FESCO’s privatization reflects investor confidence in Pakistan’s electricity distribution sector and the government’s commitment to a transparent and competitive process.
The submitted expressions of interest and statements of qualification will now undergo evaluation against approved prequalification criteria. Qualified investors will be invited to the next stage and granted access to a virtual data room for detailed due diligence.
The government aims to improve operational efficiency, modernize distribution infrastructure, strengthen customer services and reduce losses through the privatization process, while making the power sector more financially sustainable.
FESCO is one of three DISCOs included in the first batch of the government’s privatization program, along with the Gujranwala Electric Power Company and Islamabad Electric Supply Company.
The deadline for submitting expressions of interest for GEPCO is Aug. 21, while the deadline for IESCO is Sept. 7, according to the Privatization Commission, which said it would continue to pursue an open, transparent and competitive process as part of the government’s broader power-sector reform agenda.