Hyderabad Electric Supply Company Limited (HESCO)

Company Information

Hyderabad Electric Supply Company Limited (HESCO) is one of the nine electricity distribution companies (DISCOs) established as a result of the unbundling of the vertically integrated power wing of Pakistan Water and Power Development Authority (WAPDA). The company was established and incorporated in April 1998 as a public limited company under Pakistan Companies Ordinance 1984. It was originally organized to take over the properties, assets, obligations and liabilities of former Hyderabad Area Electricity Board (AEB) of WAPDA.

HESCO distributes and supplies electricity to about 1.45 million customers within defined geographical areas of entire province of Sindh excluding Karachi under a Distribution License granted by National Electric Power Regulatory Authority (NEPRA) pursuant to the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act). HESCO has administratively divided 22 districts of Sindh Province into 6 operation Circles, 25 operation Divisions and 111 operation Sub-divisions along with 6 construction divisions, and 5 M&T divisions.

The various categories of HESCO include domestic, commercial, industrial and agricultural served by an extensive distribution system network. HESCO has 82 grid stations of 132 KV capacity and 35 grid stations of 66 KV capacity. The HT line is measured at 44,000 kilometers including transmission lines of 66 and 132 KV. HESCO LT system has 55,000 distribution transformers.

TRANSACTION STRUCTURE

As part of its programme of privatisation and liberalization of the power sector in Pakistan, the Government of Pakistan (GoP) intends to offer interest in HESCO under Public Private Partnership (PPP) mode of privatisation including the management control to a investor or a consortium of strategic and financial investors.

AREA OF OPERATIONS

To ensure uninterrupted supply of electricity and most intimate customer services to about 1.45 million consumers, HESCO has administratively divided 22 districts of Sindh Province into 6 operation Circles, 25 operation Divisions and 111 operation Sub-divisions along with 6 construction divisions, and 5 M&T divisions.

Hyderabad Circle – I          (5 Divisions, 22 Sub Divisions)
Hyderabad Circle – II         (4 Divisions, 16 Sub Divisions)
Nawabshah Circle             (3 Divisions, 19 Sub Divisions)
Sukkur Circle                    (5 Divisions, 22 Sub Divisions)
Larkana Circle                   (4 Divisions, 20 Sub Divisions)
Dadu                                (4 Divisions, 12 Sub Divisions)
 

Privatisation of HESCO

The Privatisation Commission (PC) on behalf of Government of Pakistan (GOP) intends to privatise HESCO through Public Private Partnership (PPP) mode to financially sound local and foreign investors having management capabilities and technical expertise to run the power distribution utility. Expression of Interests (EoIs) from local and foreign parties interested in the transaction is expected to be invited soon through advertisement in the national and international newspapers. For further information you may contact on the below mentioned address.
 

Key Contacts

q       Mr. Ghulam Ali
Director General (MNR&P)
Privatisation Commission
5-A Constitution Avenue
EAC Building
Islamabad – Pakistan
Telephone: (92-51) 922 2243 Facsimile : (92-51) 920 3076,
                 (92-51) 921 1692
Email: info@privatisation.gov.pk

q       Mr. Shahid Raza
Transaction Manager
Privatisation Commission
5-A Constitution Avenue
EAC Building
Islamabad – Pakistan
Telephone: (92-51) 921 7973
Facsimile : (92-51) 920 3076
                 (92-51) 921 1692
Email:shahidraza@privatisation.gov.pk