|
|
|
Home > Privatization Alert - May 2010
|
Privatization Alert - May 2010
Brought to you by 
|
Focus: Signs of rebound emerged in 2009, after privatization plummeted in 2008
A new report, published by the World Bank, based on its database of privatization transactions, highlights a 70 percent decline in the value of privatization in developing countries in 2008, to US$38 billion. A significant part of the decline was accounted for by a sharp drop in initial public offerings of state-owned enterprises. The decline was attributed primarily to the financial crisis, as well as political difficulties facing many developing countries. However, early signs for 2009 indicate a resumption of privatization activity as global economic conditions improve and stock markets rebound. Increases in government expenditures to boost growth in response to the financial crisis and recession have also led to widening budget deficits in many developing countries, which has created more pressures for stepping up privatization activity.
East Asia experienced the largest decline in the value of privatizations (85 percent) owing to a sharp drop in initial public offerings. Latin America was in second place with a decline of 77 percent, with fewer privatization opportunities and smaller size of transactions. Europe and Central Asia was in third place, with a decline of 60 percent, despite increases in the value of privatization transactions for Turkey. South Asia was the only region with an increase in the value of privatizations, owing to stepping up of transactions in India. The biggest privatizers in terms of value among all developing countries were China, the Russian Federation and Turkey, which together accounted for around 85 percent of the total value of privatization transactions in 2008. A third of all privatizations, in terms of number of transactions, was accounted for by Serbia.
By sector, finance experienced a massive decline, while significant declines were also experienced by transport, water and other infrastructure sectors. Telecom was the only infrastructure sector to experience a small increase in privatization values. Values in both primary and services sectors declined, but in manufacturing privatization values nearly doubled.
Status and upcoming transactions
Europe and Central Asia:
Poland is intensifying its efforts to privatize more than 300 state-owned enterprises by the end of 2011. Bulgaria has merged the Agency for Post-Privatization Control with its Privatization Agency. The Ministry of Finance has announced the re-nationalization of the airline Malev, because its privatization has not been successful. Belarus is planning to establish a new National Investment and Privatization Agency. Turkey has issued various privatization tenders in the energy and electricity sectors. Ukraine has slated for sale several state-owned enterprises.
>> Complete list of regional project opportunities
>> Detailed country analysis by region
Sub-Saharan Africa:
Nigeria is set to privatize three of the Power Holding Company of Nigeria successor companies by the end of 2010.
>> Complete list of regional project opportunities
>> Detailed country analysis by region
East and South East Asia: Indonesia's PT Garuda is planning to delay its initial public offering due to a technical problem with its debt restructuring program.
>> Complete list of regional project opportunities
>> Detailed country analysis by region
South Asia:
Pakistan has privatized 167 state-owned enterprises since its inception yielding US$9 billion in proceeds to the government.
>> Complete list of regional project opportunities
>> Detailed country analysis by region
Archive
|
|
