By Staff Reporter
ISLAMABAD: Pakistan moved forward Tuesday with plans to outsource its two busiest airports and expand its power-sector privatization program, as the country presses ahead with an overhaul of state assets amid efforts to shore up public finances.
The Privatisation Commission’s board approved a consortium led by EY-Parthenon as financial adviser for the outsourcing of Lahore’s Allama Iqbal International Airport and Karachi’s Jinnah International Airport, according to a statement from the commission. The consortium was selected as the top-ranked bidder following a competitive process.
The board, chaired by Muhammad Ali, the prime minister’s adviser on privatization and the commission’s chairman, also formed a negotiation committee to finalize a Financial Advisory Services Agreement with the consortium, setting up the next phase of the airport sale process.
The airport decision follows last month’s appointment of the Manila-based Asian Development Bank as financial and transaction adviser for the outsourcing of New Islamabad International Airport, giving Pakistan advisers in place across all three of its major international gateways.
In a parallel move, the board designated the privatization of Lahore Electric Supply Co. and Multan Electric Power Co. as major transactions, a classification that requires the appointment of financial advisers under the commission’s regulations. The commission said it would now begin the process of selecting advisers for both utilities.
Lesco and Mepco represent the fourth batch of power distribution companies, or Discos, that the government has identified for privatization. Sales processes for the first three batches are already underway at various stages.
Faisalabad Electric, the lead Disco in the first batch, has drawn expressions of interest from about a dozen local and international investors, which the commission is currently reviewing. The deadline for expressions of interest on two additional Discos in that first batch is roughly two months away.
The latest decisions extend a broader push by the government to restructure and sell off power distribution assets, a sector long weighed down by financial losses, operational inefficiencies and elevated transmission and distribution losses.
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