10 of 12 parties prequalified for Fesco privatisation, K-Electric withdraws

The Privatisation Commission Board in Islamabad approved the prequalification of ten out of twelve interested parties for the sale of Faisalabad Electric Supply Company (Fesco) on Friday. This decision came after K-Electric (KE) withdrew its Expression of Interest (EOI) due to the unavailability of its financial accounts for the past two years, a requirement for the privatisation process.

The board's decision followed Prime Minister Shehbaz Sharif's directive to develop a comprehensive strategy to attract international investors for the privatisation of state-owned power distribution companies (Discos) and to complete the restructuring of the Privatisation Commission within a month. Jiang Xi Electric Power Construction from China was the only bidder that did not meet the prequalification criteria, as it submitted its EOI in Chinese instead of the required English.

The nine Pakistani bidders include foreign and domestic companies like Aktor Elektrik Enerji Yatırımları San ve Tic AŞ, Engro Energy Limited, Sapphire Fibres Limited, Hub Power Holdings, Lucky Cement, Metro Ventures, Shirazi Investments (Pvt) Limited, Maple Leaf Cement, Kohinoor Textile, Pakgen Limited Consortium, and Artistic Milliners (Private) Limited.

These prequalified parties will now move to the next stage of the transaction, which includes gaining access to the Virtual Data Room (VDR) for detailed due diligence. The Privatisation Commission aims to enhance operational efficiency, modernize distribution infrastructure, improve customer service, reduce losses, and support a more financially stable power sector through this process.