ISLAMABAD, Nov 6: The Privatization Commission has received seven expressions of interest (EoIs) for the financial advisory services for the disinvestment of Peshawar Electric Supply Company Limited (PESCO).

The Privatization Commission has sent request for proposals (RFP) to all the parties. RFP includes terms of reference, standard forms for technical and financial proposals, audited and approved financial statements of PESCO for fiscal year ending June 1999, June 2000 and June 2001, etc. The last date for submission of RFP is December 16, 2002.

Parties who have submitted EoIs include: Aqeel Karim Dhedhi Securities (Pvt) Ltd, Karachi; BMA Capital Management, Karachi; Faysal Bank Limited, Lahore; Global Securities Pakistan Limited, Karachi; Khadim Ali Shah Bukhari & Co Ltd, Karachi; SG Consil Pays Emergents, Paris; and Trust Investment Bank Limited, Lahore.

Financial advisory consortium (FA) is required to assist the government of Pakistan in privatizing PESCO and in meeting the above-mentioned objectives of the GoP. The financial adviser’s responsibilities, inter alia will include: (a) detailed due diligence and review of operational, accounting, financial, legal, environmental, contractual, regulatory, labour and other institutional aspects of PESCO; (b) feasibility of different transaction structures and advise on the transaction structure for private sector participation; (c) development of appropriate legal and contractual agreements; (d) preparation and implementation of the marketing plan; and (f) preparation of bidding documents, post-bid evaluation and close of transaction.

The Privatization Commission had invited EoI from the world class consortia, led by an investment bank well versed with restructuring and privatization of power sector and having the support of leading legal, accounting and technical firms to act as the financial adviser for the privatisation of PESCO.

The government is considering the privatization of PESCO, which is fully owned by the GoP company formed as a result of unbundling of the vertically integrated power wing of Pakistan Water and Development Authority (Wapda) into 14 independent companies, i.e four thermal generation companies (GENCOs), one national transmission and dispatch company (NTDC) and nine distribution companies (DISCOs) for corporatization, commercialization and subsequent privatization.

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 1, 1999.

It is one of the nine DISCOs responsible for supply and distribution of electricity in NWFP excluding the tribal areas. 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 divestment process are the objectives of the government for the privatization of power sector.