Pakistan prequalifies nine bidders for GEPCO stake in privatization drive
Nine prequalified parties will now proceed to the next stage, which includes access to a virtual data room for detailed due diligence.
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
Pakistan has prequalified nine parties to bid for a 51% to 100% stake in Gujranwala Electric Power Company (GEPCO), including management control, as the government advances its plan to privatize power distribution companies.
The decision was taken at the 259th meeting of the Privatization Commission Board, chaired by Muhammad Ali, adviser to the prime minister on privatization and chairman of the commission, according to a statement issued on Monday.
The commission received 11 expressions of interest for GEPCO. After evaluating the applicants against approved criteria, the transaction’s financial adviser recommended nine parties for prequalification, the statement said.
The successful bidders are Aktor Elektrik Enerji Yatirimlari San. Ve Tic. A.S., Genvera Enerji A.S., Cengiz Enerji Sanayii Ve Ticaret A.S., Engro Energy Limited, Sapphire Fibers Limited, Hub Power Holdings Consortium, Shirazi Investments (Pvt.) Limited Consortium, Artistic Milliners (Pvt.) Limited Consortium and AKD Securities Consortium.
The list includes three Turkish energy companies as well as major Pakistani business groups and investment consortia, indicating interest from both domestic and international investors in the country's electricity distribution sector.
K-Electric withdrew its expression of interest, while Al Sharif Contracting & Commercial Development Co. Ltd. failed to submit documents required under the Request for Statement of Qualification, the commission said.
The nine prequalified parties will now proceed to the next stage, which includes access to a virtual data room for detailed due diligence.
The government has been seeking private investment in power distribution companies as part of wider efforts to improve efficiency, service delivery and financial performance in the electricity sector.
Airport outsourcing
The board also reviewed the reconstitution of a negotiation committee for the proposed outsourcing or concession of three major airports: Allama Iqbal International Airport in Lahore, Jinnah International Airport in Karachi and Islamabad International Airport.
The move is intended to advance the airport transactions under the government's broader outsourcing program, the commission said.
Financial-sector privatization
The board also reviewed progress on the proposed privatization of House Building Finance Company Limited and Zarai Taraqiati Bank Limited.
It directed transaction advisers to accelerate work on both processes to ensure they remain on schedule.
The commission said it remained committed to conducting privatization transactions through transparent and competitive processes aimed at attracting credible domestic and international investors, improving efficiency and service delivery and securing value for the government and the public.
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