Technical Due Diligence for privatisation of HESCO & SEPCO Distribution Companies in Pakistan

Scope of the project includes the following studies:

a) The agency agreement with CPPA-G to procure power on the DISCO’s behalf, the obligations and rights resulting from that agreement, and power/energy purchase agreements;
b) The number of and energy sales to customers, per category and total;
c) Compliance with performance standards regulations and history of efficiency indicators such as distribution losses and collections;
d) staffing levels;
e) The decisions on the determined multi-year tariffs (for distribution and supplier), in particular, the investment plan and the instructions on actions or reporting due by the DISCO;
f) Any issue on environmental performance and compliance;
g) Detailed Due diligence on DISCOs’ assets and its operations, such as
(i) Purchase of energy from CPPA-G, sale of energy to customers, staffing levels, forecasted sale projection, current state of the network, network enhancements required, IT Systems and future requirements, etc.;
(ii) Review the operational agreements of DISCOs in the second batch with CPPAG and associated parameters of the agreements;
(iii) Review alignment of DISCOs technical, operational and commercial operations with Multi Year Tariff (MYT) tariff petitions submitted by the DISCOs to determine the areas of concerns and make necessary recommendations, where required;
(iv) Review on-going procurements particularly relating to infrastructure under different funded programs and their impact on DISCOs business with private sector participation;
(v) Review and confirm inventorization of the assets and their reconciliation with reported figures;
(vi) Others that may be required to assess and determine the condition of assets and compliance with applicable regulations;