10 firms prequalify for Fesco bidding

The Express Tribune reported that the Privatisation Commission has approved 10 prequalified bidders for the sale of Faisalabad Electric Supply Company (Fesco). A Chinese subsidiary of a Fortune Global 500 group was ruled non-compliant after filing its documents in Mandarin rather than English. Three Turkish companies were also cleared to submit financial bids for the company.

K-Electric (KE) was left off the list after failing to supply audited accounts covering the previous three years, which it blamed on the regulator not yet approving its multi-year tariff. KE then withdrew its expression of interest to avoid disqualification, while its Kuwaiti and Saudi shareholders have filed a $2 billion damage suit over the government's move to block their deal for a 66% stake with Shanghai Electric. A senior commission official dismissed arbitration as a ground for disqualification.

A consortium led by Nishat Mills, with Nishat Power, Nishat Chunian, Lalpir, Pak Elektron and Kohinoor Energy as members, was declared eligible. Maple Leaf Cement, Kohinoor Textile, Lucky Cement and Engro Energy are also among the final bidders. Last week the Cabinet Committee on Privatisation approved a restructuring plan that would transfer Rs290.5 billion of Fesco assets against Rs226.5 billion in liabilities, leaving buyers with Rs64 billion of equity. The end-August deadline for separating core land from non-core assets is likely to be missed.