Faisalabad Electric Supply Company Privatization – Technical Due Dilligence

MHI performed a technical due diligence study and developed the basis for establishing a bid price for the privatized company. This included an assessment of current asset value and provided evaluation and strategies associated with disco valuation under various financial and tariff regimes. More specifically, some of the MHI tasks included:

• Conducting a physical inspection of fixed assets
• Reviewing existing “data room” material and conducting our own investigation in support of technical and operation assessment
• Performing several site visits of company facilities, a physical review of the revenue cycle process and interviewing customers and staff regarding current situation and conditions
• Developing opportunities for improvement in non-technical loss to FESCO by recommending a new billing system, meter reading training and a meter change-out program
• Preparing several due diligence and business planning reports in support of the estimates and assumptions used in the financial model for establishing company valuation based on future cash flows