Oct 09 , 2015
News
Roadshow in US on privatisation of power companies
WASHINGTON: Privatisation Commission Chairman Mohammad Zubair launched a roadshow in Washington on Thursday to attract US investment into Pakistan energy sector, saying that with political stability and significant reduction in violence, the country offers ideal investment opportunities.
Speaking to a large gathering of investors, businessmen and energy specialists, the Chairman said that the cabinet has approved the structure of the Faisalabad Electric Co. Ltd (FESCO) for Privatisation and the remaining eight power units were now in line with financial advisors for these companies already appointed. The event titled ‘Market Consultation: Pakistan Power Sector Privatisation Roadshow’ was organised by the Privatisation Commission with the support of the World Bank, the United States Energy Association and the US-Pakistan Business Council.
He said that Pakistan provided great economic and investment opportunities in the region and was committed to the reform agenda as the way forward. In the last one year, return on dollar investment was more than on the local currency. The chairman said not a single transaction could take place between 2006-13, despite expressed commitment by then governments, but the present government of Prime Minister Nawaz Sharif has carried out successful transactions in the last two years. The capital market transactions raised more than $1.7 billion which helped the country reserve position.
Referring to conducive investment environment in Pakistan today, the chairman said that unprecedented political stability, with first ever successful political transition in 2013, has provided the much-needed certainty to both local and foreign investors. He said for the first time in the history, all stakeholders including political parties, army, judiciary and civil society were on one page. The chairman said militancy in Pakistan for nearly two decades limited the economic growth which was less than 3 percent on average between 2008-13. But, he added, because of the bold initiative and commitment to remove the menace, terrorists were on the run and Pakistan was today totally a different place and economy was showing sustainable growth.
“As far as the power sector is concerned, we are on the threshold. We are responsive and keen as this is the way forward,” the chairman said. Pakistan achieved 4.3% growth in the last financial year and aiming for over 5 percent next year, he said and added that all major economic indicators were showing positive trend. The power companies to be privatized include FESCO; Northern Power Generation Co. Ltd. (NPGCL-GENCO-III) - Thermal Power Station (TPS) Muzaffargarh (1350 MW); Lahore Electric Supply Company Limited (LESCO); Islamabad Electric Supply Company Limited (IESCO) and; Quetta Electric Supply Company Limited (QESCO).
Also on the list are Lakhra Power Generation Company Ltd. LPGCL (GENCO-IV); Peshawar Electric Supply Company, Limited (PESCO); Central Power Generation Company Ltd – CPGCL (GENCO II) and Multan Electric Power Company Limited (MEPCO). Addressing the gathering, Pakistan ambassador to the United States, Jalil Abbas Jilani, gave an overview of Pakistan-US relations and said that ties were now on an upward trajectory and both countries were having cooperation in multiple areas, including energy.
He said that the cooperation in economic and financial sectors was extremely good and economic reforms have been acknowledged and appreciated by all international donors, including the United States. He particularly mentioned about the US support in projects such as Dasu, Basha and CASA-1000. The Ambassador mentioned that US-funded projects have added around 1,500 megawatts of electricity to Pakistan national grid between 2010-2015. “We would like that the US should invest in repair and up-gradation of electricity transmission system. In this regard, Pakistan would like to have some progress during the forthcoming visit of the Prime Minister Nawaz Sharif, starting from October 20,” the ambassador said.
He said the focus of the prime minister visit would primarily be on working out measures for enhancing trade and economic cooperation between our two countries. “We need to work on a few signatures projects with larger impact and visibility. Energy sector would be foremost interest and significance to that end.” Ambassador Jilani thanked the World Bank for its support, particularly in the energy sector, saying that Pakistan was very grateful for being able to forge great partnership with the Bank. Secretary Privatisation Commission, Ahmad N Sukhera gave details about the power sector units on the list of Privatisation.
He said a total of 69 entities were on the list out of which five, including capital market transactions, have been completed that helped raised over $1.7 billion. Currently, the commission is processing 26 transactions, of which 16 were either concluded or were about to be concluded. These included a lot of power sector entities. The Privatisation Commission intends to take 10 more in a couple of months, including banks, the Secretary said. Giving an expected timeline for bidding for the power sector units, the Secretary said that the FESCO was at a very advanced stage with its due diligence completed.
Courtesy www.dailytimes.com.pk