ISLAMABAD: The Privatisation Commission has initiated sell-off process of Hyderabad Electric Supply Company (Hesco) as part of a comprehensive reform and restructuring programme of the power sector.

The commission on Friday issued the ‘expression of interest’ (EoI) for engaging the services of a reputable financial advisory consortium for this transaction. The deadline for the submission of technical and financial proposal is February 27.

The advisory services include due diligence of Hesco’s operations, formulation of a comprehensive business plan for private sector partnership to promote rapid development and modernisation of the distribution network; review of the divestment options and development of an appropriate transaction structure; implementation of the transaction structure for divestment of the company; and preparation and implementation of a marketing plan.

The divestment of 100 per cent strategic asset of Faisalabad Electric Supply Company (Fesco) will be completed by August 31 this year and Islamabad Electric Supply Company (Iesco) and Lahore Electric Supply Company (Lesco) by October 31.

The government plans to complete the capital market transaction for selling its 100pc stake in Habib Bank Limited by April 30 this year.

The divestment of various power sector generation and distribution assets will allow activities to be undertaken

by the private sector and improve the efficiency of the power sector through competition, accountability, managerial autonomy and profit incentives.

Published in Dawn January 24th , 2015

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