Pakistan has received expressions of interest from 11 investors seeking to take control of Gujranwala Electric Power Company (GEPCO), giving a fresh boost to the government’s plan to privatise electricity distribution companies.
The interested parties are seeking between 51 and 100 percent of GEPCO’s shares, along with management control. The bids include major Turkish and Saudi firms as well as some of Pakistan’s leading business groups.
The Turkish investors are Aktor Elektrik Enerji Yatırımları, Genvera Enerji and Cengiz Enerji. Saudi Arabia’s Al Sharif Contracting and Commercial Development Company has also shown interest.
Pakistani bidders include Engro Energy, Sapphire Fibers, Hub Power Holdings and Lucky Cement, Shirazi Investments, Artistic Milliners and Fatima Group, K-Electric, and a consortium comprising AKD Securities, Fast Cable and Mughal Steel Group.
Muhammad Ali, Adviser to the Prime Minister on Privatisation and chairman of the Privatisation Commission, said the strong response showed investor interest in Pakistan’s electricity distribution sector.
He said the commission would now work with qualifying investors during the due diligence stage and discuss how GEPCO would operate after privatisation.
The EOIs and statements of qualification will first be assessed against the approved criteria. Investors that meet the requirements will then receive access to a virtual data room containing detailed information needed to assess the company before making further decisions.
The government sees the sale of GEPCO as part of wider efforts to improve the performance of the power sector. It aims to reduce electricity losses, upgrade distribution networks and improve services for consumers.
GEPCO is among three distribution companies included in the first batch of the privatisation programme. The other two are Faisalabad Electric Supply Company (FESCO) and Islamabad Electric Supply Company (IESCO).
FESCO received EOIs from 12 investors before its August 7 deadline. The deadline for IESCO is September 7.
The Privatisation Commission said it would continue to pursue an open and competitive process, with the broader goal of making electricity distribution more efficient and financially sustainable.
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