Privatisation Bid by Three Firms Opens 2015/16 Fiscal Year
The opening privatisation bid for the 2015/16 fiscal year, which has just started, has drawn three bidders for one enterprise and none for the other four.
The last fiscal year was bleak for the Privatisation & Public Enterprises Supervising Agency (PPESA), which was able to privatise just one company.
The latest bid was opened on the afternoon of July 16, 2015 in the presence of bidders’ representatives and procurement officers. The Agency had offered to sell Bilito Siraro Farm, Bahir Dar Textile S.C. and Kombolcha Textile S.C. through negotiation with the winning bidder, while it offered no negotiation for Agricultural Mechanization Services Enterprise and Artistic Printing.
Two of the three bidders for Bilito are local companies, Bilito Agricultural Plc and Emenete Endeshaw General Contractor Plc, while the third, CRM Global Ltd, is a company which has a presence in sub-Saharan Africa. CRM’s document, in which it only offered to restructure the farm and make it available for sale, was rejected immediately after opening.
Bilito Agricultural Plc offered 30 million Br, with a 35pc advance payment, the rest to be paid in five years. Emenet Endeshaw General Contractor Plc offered 40 million Br, with a 30pc advance payment and the rest to be paid in five years.
The two bidders were told that they would be notified once the Agency had completed evaluation of their offers. Final approval of winning offers is made by the Agency’s Board, which is chaired by Aster Mamo, minister of Civil Service, and Cluster Coordinator for Good Governance & Reform in the rank of Deputy Prime Minister.
Lately, few bidders are showing interest in purchasing enterprises from the Agency since most of the ones considered to bring profit have already been privatised, said one source from the Agency.
According to reports from the Agency, during first Growth and Transformation Plan (GTP I), the Agency had transferred 52 enterprises to private ownership, from which it collected 13.6 billion Br. It had also transferred enterprises in a joint venture scheme where the Agency has managed to transfer seven enterprises out of the planned ten.
For the second GTP, it plans to transfer 16 companies, only four of which will be offered for sale for the first time. These include National Alcohol & Liquor Factory, Awash Melekassa Aluminum Sulfate & Sulfuric Acid S.C., Langano Resort Hotel, and Ethiopian Pulp & Paper Factory S.C.
Tags: Ethiopian Privatization & Public Enterprise Supervising Agency (PPESA),, Bilito Siraro Farm,, Bahir Dar Textile S.C,, Kombolcha Textile S.C,, Artistic Printing Ethiopia,, Agricultural Mechanization Services Enterprise Ethiopia,, Bilito Agricultural Plc,, Emenet Endeshaw General Contractor Plc,, National Alcohol & Liquor Factory Ethiopia,, Awash Melekassa Aluminum Sulfate & Sulfuric Acid S.C,, Langano Resort Hotel,