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Home > Privatization Alert - November 2007
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Privatization Alert - November 2007
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Focus: Privatization trends in Telecoms
A recent report by the International Telecommunication Union (ITU), entitled Trends in
Telecommunication Reform 2007, highlights that telecom privatization is still a priority for emerging markets, despite a slowdown in the sale of state-owned operators. The report points out that many emerging markets that have not yet privatized their incumbent operators are planning to do so in order to improve efficiency, productivity and service quality and to further develop their networks. The report documents that some US$ 83 billion was raised through privatizations of incumbent public telecommunication operators in developing countries during 1990-2006. By the middle of 2007, 123 (out of 191) ITU member countries had a private or privatized national fixed-line incumbent. As of mid-2007, Africa, with 26 state-owned telecom incumbents, had the lowest share of private owned operators of all regions. Nevertheless, governments in that region remain interested in privatization, as exemplified by the recent sale of a 51 percent stake in Kenya's state-owned Telkom Kenya.
Several emerging markets across all regions are also proceeding with telecom privatization. In Eastern Europe, Ukraine is planning to privatize Ukrtelecom and Russia is expected to privatize further Svyazinvest, a state-owned company that runs regional phone networks and also has wireless and pay-TV holdings. In Central Asia, Kyrgyzstan has approved a proposal to sell a 77.8 percent stake in Kyrgyztelecom. In East Asia, the Philippines is offering a 10.2 percent stake in Eastern Telecommunications Philippines Inc., the country’s oldest telephone company.
Status and upcoming transactions
Europe and Central Asia: Georgia has announced the bidding for a concession for Georgian Railway Ltd. with a bid submission deadline of January 25, 2008. Montenegro has announced the sale of a couple of tourism and leisure property development companies.
Kosovo launched the 29th round of privatizations in October 2007, with a deadline for submitting pre-qualifications of December 5, 2007. Serbia is in the process of planning the privatization of Naftna Industrija Srbije (NIS), the state-owned oil company, which will entail the sale of its property after the adoption of a new law over the course of next year. Regional investors, as well as Gazprom, have expressed interest in the company. Uzbekistan has issued its privatization program for the next three years, aimed at attracting foreign investment. It has recently extended the deadline for bid submissions for Uzbekcoal, Jizzahplastmassa, a chemical/plastics company, and Sarbon-Neftegaz, a transportation company.
>> Complete list of regional project opportunities
>> Detailed country analysis by region
Middle East and North Africa: Lebanon has announced the privatization of its mobile telephone network through a public auction to be held on February 21, 2008. Egypt has been privatizing its banking sector over the last two years, with about half of it now in the hands of the private sector, reports the International Monetary Fund.
>> Complete list of regional project opportunities
>> Detailed country analysis by region
East and South East Asia: In Indonesia state-owned insurance company PT Asuransi Jasa and savings bank BTN are ready to be privatized through initial public offerings next year. Five more state enterprises are to be privatized in the same manner in 2008.
>> Complete list of regional project opportunities
>> Detailed country analysis by region
South Asia: Pakistan which has targeted US$3.5 billion in privatization proceeds for Fiscal Year 2007-08, has announced the sale of Pakistan Machine Tool Factory (Pvt.) Ltd.
>> Complete list of regional project opportunities
>> Detailed country analysis by region
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