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Privatisation of state owned enterprises


In 1993, We designed, presented and chaired a ground-breaking seminar in Sydney entitled "From the public sector into the private sector" on behalf of the Financial Services Institute of Australasia (www.finsia.edu.au). That seminar explored the process of equitization, examining issues including:

    1. Aligning the equitization approach adopted to the government's objectives in implementing equitization.
    2. Steps required in the business and regulatory environment prior to implementation of equitization.
    3. Steps required within each SOE prior to implementation of equitization.

In 1995, We were part of the PT Price Waterhouse Sutanto team that was responsible for implementing cultural and organisational change at PT Telkom, the government-owned telecommunications provider in Indonesia.

It has become increasingly apparent to development finance institutions that the analysis, skills and disciplined approach required in management of problem loans is also a vital attribute in the preparation of state-owned enterprises for privatisation. I was therefore retained in 2002 to advise the Asian Development Bank (ADB) which was, at that stage, negotiating with His Majesty's Government of Nepal (HMGN) for the implementation of a broadly based programme of privatisation of state-owned enterprises (SOEs).

During the first Mission in 2002, We:

    1. Evaluated, and reported to the ADB, on the capacity of HMGN and the various privatisation agencies to implement such a programme, and
    2. Inspected a range of SOEs in Nepal to ascertain their status and capability of being privatised, and on obstacles to the privatisation programme.

The programme was suspended in late 2002 because of civil disturbances in Nepal. However, it subsequently recommenced, and I was asked by ADB and the (UK) Department for International Development (DFID) conduct a subsequent Mission.

In that 2nd Mission, We reported:

    1. On progress that had been achieved to date,
    2. Whether the process of privatisation was appropriate, and
    3. How the process could be strengthened and the pace and effectiveness of privatisation strengthened.

During the two Missions in 2004, I reported to ADB & DFID on:

    1. Progress that had been achieved to date,
    2. Whether the process of privatisation was appropriate,
    3. How the process could be strengthened and the pace and effectiveness of privatisation strengthened,
    4. Reducing Nepal SOEs contingent liabilities, and
    5. Strengthening Nepal SOEs' reporting to Ministry of Finance.

This project is replicable in a number of other emerging market economies.

contact details

South Africa: +27 82 447 4256

Australia: +61 402 048 326

E-mail: amra@amcrobertandassocs.com.au