ISLAMABAD: The Privatisation Commission Board (PCB) on Tuesday asked the government to take over liabilities of exWapda distribution companies (Discos) to facilitate their smooth and successful privatisation like Pakistan International Airlines.
An official statement said the Privatisation Commission Board, presided over by Adviser to the Prime Minister on Privatisation Muhammad Ali, recommended for approval by the Cabinet Committee on Privatisation (CCoP) the restructuring plans and schemes of arrangement for sale of first batch three Discos Faisalabad, Gujranwala and Islamabad.
The CCoP led by Deputy Prime Minister and Foreign Minister Ishaq Dar is expected to meet on Thursday (July 30) to clear the restructuring plan, scheme of arrangement and transaction structure including creation of a special purpose vehicle totake over liabilities.
The PCB in its meeting approved the restructuring plans and schemes of arrangement for the privatisation of Faisalabad Electric Supply Company (Fesco), Gujranwala Electric Power Company (Gepco), and Islamabad Electric Supply Company (Iesco) on the basis of the audited financial statements for the period ended March 31.
‘The proposed framework is designed to maximise value for the Government of Pakistan while ensuring that the transactions remain commercially viable and attractive to prospective private-sector investors, an official statement said.
Under the proposed structure, a governmentowned Special Purpose Vehicle (SPV) will be established to carve out selected assets and liabilities of the three Discos, facilitating an efficient and commercially viable transaction structure.
-Staff Reporter