World Bank offers help to investors

The World Bank has offered financial assistance and risk guarantee for investor comfort in a bid to encourage private sector participation in the management of ailing power distribution companies (DISCOs). As efforts are underway to hand over management control of DISCOs to the private sector, the Power Division has drawn up an innovative plan to reduce circular debt in the energy chain. The division intends to appoint the International Finance Corporation (IFC), an arm of the World Bank, as transaction adviser for handing over management control of DISCOs to private investors. According to the sources, the division has circulated a summary for its presentation to the Cabinet Committee on Energy (CCOE) for approval. In the summary, it has called for removing all DISCOs from the government’s privatisation list and picking Hyderabad Electric Supply Company (Hesco) and Gujranwala Electric Power Company (Gepco) for first transactions to hand over management control.