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Islamabad: The Privatisation Commission has signed a Financial Advisory Services Agreement with a consortium led by M/S Alvarez and Marsal Middle East Limited, marking a significant step towards private sector involvement in three key Distribution Companies (DISCOs): Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO).
According to a statement by Press Information Department, the agreement was formalized on February 11, 2025, and includes partners such as International Consulting Associates (Pvt) Limited (iConsult), Yousuf Adil Chartered Accountants, Vellani and Vellani, Power Planners International Pvt. Ltd., and NEOS Group Inc.
This initiative aligns with the government’s commitment to enhancing efficiency and sustainability in the power distribution sector. Under the agreement, the consortium will provide financial advisory services to facilitate private sector investment in the DISCOs.
The consortium’s responsibilities include conducting due diligence, market sounding, investor outreach, developing transaction structures, recommending transaction sequencing, and assisting in the bidding process. This is intended to attract credible private sector investor interest.
The participation of the private sector is anticipated to improve operations, service quality, and financial sustainability within the electricity distribution framework. The Privatisation Commission, along with stakeholders, is committed to ensuring a transparent and competitive process.
The Secretary of the Privatisation Commission expressed gratitude to the stakeholders, including evaluation committee members and the Power Division, for their contributions. He highlighted the importance of a whole-of-government approach for successful implementation and attracting private investment.
The privatization of these DISCOs, identified as Batch-1, is expected to be completed by the end of 2025.
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