Pakistan’s Privatisation Commission has received Expressions of Interest from 11 domestic and international investors for a controlling stake in the Gujranwala Electric Power Company, marking another step in the government’s push to sell off state-run electricity distribution firms, Dawn reported.
Who Is Bidding for GEPCO
The commission said Friday, the closing date for submissions, that the 11 prospective investors are seeking to acquire between 51 and 100 percent shareholding in GEPCO along with management control. Four of the bids came from foreign investors, three Turkish firms and one from Saudi Arabia, while seven came from Pakistani business groups, according to Dawn and Geo News.
The Turkish bidders include Aktor Elektrik Enerji Yatirimlari, Genvera Enerji and Cengiz Enerji, while Saudi Arabia’s Al Sharif Contracting and Commercial Development Company also submitted an EOI. Pakistani interest came from major business groups including Engro Energy, Hub Power Holdings, Lucky Cement, Shirazi Investments, Artistic Milliners, Fatima Group and K-Electric, along with a consortium of AKD Securities, Fast Cable and Mughal Steel.
Part of a Bigger Privatisation Push
GEPCO is one of three power distribution companies, known as Discos, in the first batch of the government’s privatisation programme, alongside the Faisalabad Electric Supply Company and the Islamabad Electric Supply Company. FESCO already drew 12 EOIs by its August 7 deadline, while the deadline for IESCO bids is September 7.
“Today marks another important achievement in the privatisation of Discos,” said Muhammad Ali, adviser to the prime minister on privatisation and chairman of the Privatisation Commission. “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.”
What Happens Next
The Privatisation Commission said the submitted documents will now be evaluated against approved prequalification criteria, after which qualified investors will be invited into the next stage of the transaction. Prequalified bidders will get access to a virtual data room to carry out detailed due diligence on GEPCO’s finances and operations before making formal offers.
Together, FESCO, GEPCO and IESCO serve more than 14 million consumers across Punjab, the Islamabad region and parts of Azad Jammu and Kashmir. The government has said the privatisation drive is meant to improve operational efficiency, modernise distribution infrastructure, cut losses and put the power sector on a more financially sustainable footing, though earlier investor feedback reports have flagged demands for longer tariff guarantees and protection against future policy changes before bidders commit further.
