THE DIVESTITURE PROGRAMME UPDATE

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THE DIVESTITURE PROGRAMME - UPDATE

• Gambia Divestiture Agency
• Ms. Mama Marenah
• Chief Executive

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Presentation Outline

• Background
• Classification Scheme
• Divestiture Transactions in progress
• Sector Studies
• Other Activities
• Outlook 2004

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Divestiture Programme Background

• Stakeholders consultation workshop held - April
  1999
• Design New Divestiture Strategy and Regulatory
  Framework within ESAF
• Resume Public Enterprise reform

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Divestiture Programme Background

• Approval by Cabinet of the new Divestiture
  Strategy and Regulatory Framework
• Enactment of Gambia Divestiture Act 2001 and
  Establishment of the Gambia Divestiture Agency

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Divestiture Programme - Background

• GDA mandate implement Governments divestiture
  programme and serve as the secretariat for the
  divestiture process

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Institutional Reporting Arrangements
Cabinet
HILEC
GDA
DITF (DNTF)
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PE Classification

• Jan 2002 - Approval by Cabinet of the PE
  classification scheme
• PEs classified into two Tracks Track I and
  Track II

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PE Classification

• PEs in Track I
• Require sector studies prior to being divested
  and legislative or regulatory support
• Considered strategic

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Track I PEs

• National Water and Electricity Company Ltd.
• Gambia Ports Authority
• Gambia Telecommunications Company Ltd.
• Gambia Public Transport Corporation

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Track I PEs

• Gambia Civil Aviation Authority
• Social Security and Housing Finance Corporation
• Gambia International Airlines
• National Printing and Stationery Corp.

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Track II PEs

• Track II PEs
• Can be sold without needing legislative or
  regulatory support
• Will begin the first phase of the divestiture
  programme

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Track II PEs

• Gambia Groundnut Corporation
• Maintenance Services Agency
• Kuntaur Rice Mill
• Banjul Shipyard Company Ltd.

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Track II PEs

• Gambia Cotton Company Ltd. (Govt. Shares)
• Banjul Breweries Ltd (Govt. Shares)
• Senegambia Beach Hotel (Govt. Shares)

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Divestiture Transactions - GAMCOT

• Government has 40 shareholding in GAMCOT and
  intends to dispose of 30
• Majority shareholder (DAGRIS) expressed interest
• Negotiations held in December 2003, no agreement
  reached

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Divestiture Transactions - GAMCOT

• New proposal received in January 2004
• Expect to resume consultations soon

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Divestiture Transactions - GGC

• EC Funding - the 2001 Studies on the Technical
  Appraisal of Industrial Assets Equipment and
  the River Transport Fleet of GGC was updated in
  Nov. 2003
• Legal review and audit of GGC completed in
  November 2003
• At least 51 of shares will be offered to
  Strategic Investor

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Divestiture Transactions - GGC

• Remaining shares to be offered to other
  stakeholders
• With EC funding, GDA in the process of hiring the
  services of Financial Advisor

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Divestiture Transactions- GGC Timeline
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Divestiture Transactions Banjul Breweries Ltd.

• Government ownership 3.09 (DOSFEA 1.27, AMRC
  1.82)
• In-house valuation exercise completed
• Cabinet approval for DOSFEA shares to be
  transferred to AMRC
• Expect to complete transaction during 2004

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SSHFC - Study

• Study completed in February 2004
• Focused on two main issues
• Possibility of opening up pension fund management
  to private sector competition
• Possibility of splitting the Housing Fund from
  the Social Security Fund

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Other Activities Autonomy for Gambia Post Office

• Plans to transform GPO into an autonomous body
  (GAMPOST) ongoing
• Rationale for the transformation - more efficient
  postal service and venture into other services
  i.e. banking

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Other Activities Autonomy for Gambia Post Office

• DITF completed work on Financial viability study,
  Scheme of Service, and draft CP
• GAMPOST Bill currently at DOSJ
• Expected that GPO will be transformed into an
  autonomous body by April 1, 2004

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Other Activities Technical Assistance

• Funding from GDA component of the Trade Gateway
  Project, GDA is at an advanced stage of hiring a
  TA
• TA will assist GDA in divestiture-related
  activities and capacity building
• Expect TA will be in place April 2004

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Other Activities Divestiture Handbook

• A holistic picture of divestiture programme, the
  Divestiture Strategy and Regulatory Framework and
  the Gambia Divestiture Act 2001intergrated into
  one document The Divestiture Handbook
• Captures changes that transpired since 2000

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Other Activities Divestiture Handbook (Overview)

• Divided into five sections
• Section 1- Rationale for Divestiture
• Section 2 The Enabling Legislation

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Other Activities Divestiture Handbook (Overview)

• Section 3 The New Divestiture Framework
• Scope of the Divestiture Programme
• Policy Body HILEC
• Implementing Agency - GDA

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Other Activities Divestiture Handbook (Overview)

• Section 4 The Divestiture Process
• Principles of Divestiture
• Enterprise Selection Criteria
• Guidelines for the Divestiture Process
• Methods of Divestiture

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Other Activities Divestiture Handbook (Overview)

• Section 5 The Regulatory Framework
• Enabling Environment
• Post-Privatisation
• The Regulatory Authority

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Other Activities Website Development

• Funded from GDA component of Trade Gateway
  Project

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Other Activities Website Development

• Website essential tool in divestiture, aids in
• Promoting the idea of divestiture
• Providing timely and relevant information to
  potential investors and the public
• Increasing the positive exposure of GDA

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OUTLOOK 2004

• Complete work on GGC and effect sale
• Complete work on transformation of GPO into an
  Autonomous Institution
• Dispose of Govt. shareholding in GAMCOT and
  Banjul Breweries

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OUTLOOK 2004

• Start work on at least two other Track II PEs
• Commission at least two sector studies
• Divestiture Consensus Building

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Website Launch