Pakistani, Turkish, Saudi companies show interest in Gepco privatisation, commission says

Pakistan's Privatisation Commission announced Friday it received "overwhelming response" from 11 prospective investors for the proposed privatization of Gujranwala Electric Power Company (Gepco). The commission seeks to sell 51% to 100% of the company's shares along with management control.

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Today on the closing date for submission of Expressions of Interest (EOIs), the Commission has received EOIs from 11 prospective investors seeking to acquire 51 to 100pc shareholding in Gepco together with management control.

Four of the 11 bids came from foreign investors: three Turkish firms, Aktor Elektrik Enerji Yatırımları San. ve Tic. A.Ş., Genvera Enerji A.Ş., and Cengiz Enerji Sanayii ve Ticaret A.Ş., and one Saudi company, Al Sharif Contracting and Commercial Development Company. Seven bids were submitted by local business groups.

Many of these investors had also expressed interest in the earlier privatization of Faisalabad Electric Supply Company (Fesco). The Privatisation Commission noted that Gepco did not attract Chinese investors, unlike Fesco, which received one bid from a Chinese company. Local bidders include Engro Energy Limited, Sapphire Fibers Limited, Hub Power Holdings, Lucky Cement, Shirazi Investments (Pvt) Limited, Artistic Milliners (Pvt) Limited, Fatima Group, K-Electric Limited, and AKD Securities.

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Today marks another important achievement in the privatisation of Discos. The strong response for Gepco is indicative of investor confidence in the potential of Pakistan’s electricity distribution sector and in the government’s commitment to a transparent, competitive and professionally managed process.

Muhammad Ali, prime minister’s adviser on privatization and PC chairman, welcomed the investor community's engagement, stating the strong response for Gepco "is indicative of investor confidence in the potential of Pakistan’s electricity distribution sector and in the government’s commitment to a transparent, competitive and professionally managed process." The commission plans to engage with prequalified investors during the due diligence phase. The privatization aims to enhance operational efficiency, modernize distribution infrastructure, improve customer service, reduce losses, and foster a more financially sustainable power sector, ultimately leading to more competitive electricity distribution and affordable power for consumers.

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In the long run, these measures will help create the conditions for more competitive electricity distribution and affordable, reliable power for consumers.