KATHMANDU, JAN 21, 2013
The Finance Ministry has been shelving the plan to bring a strategic partner for Nepal Telecom, blamed the Ministry of Information and Communications (MoIC).
A committee formed by the Finance Ministry last year had suggested the government to divest up to 30 per cent of its stake in Nepal Telecom (NT) so as to pave the way for a strategic partner in the state-owned telecom operator.
The entire process of bringing a strategic partner at Nepal Telecom has been halted due to the Finance Ministry, said secretary at MoIC Surya Prasad Silwal. He blamed the Privatisation Committee for the delay.
The meeting of the finance minister-led Privatisation Committee should be held to take a decision on privatising public enterprises, according to the Finance Ministry.
“But the meeting has failed to take place due to finance minister Barshaman Pun.”
The finance minister often pledges to conduct the meeting at the earliest but has never done so putting the agenda of bringing a strategic partner at NT in limbo, an official at the ministry said.
It is unfortunate that the plan to bring a strategic partner has been delayed due to the finance minister’s reluctance, the source said. “NT is in dire need of a strategic partner but all politicians and MoIC officials have been milking NT and are reluctant to implement any reform agendas.”
The government and the strategic partner must not be allowed to transfer their shares until after five years of acquiring the shares, the committee had recommended.
The report has suggested the government to calculate the share value of the company based on the premium valuation method. It has also suggested that the strategic partner should have an experience in operating telecom services in at least three countries including a country from the G22 group.
The aspirant partner should have an experience of handling at least 20 million subscribers in PSTN and mobile service, the report said, adding that the new partner should invest at least Rs 30 billion to Rs 40 billion in NT.
The report has asked the government to bring in only those firms whose yearly income is more than $ one billion. It has asked the government to include a representative from the company that becomes a strategic partner in the executive board of Nepal Telecom.
The committee had emphasised on bringing a strategic partner due to the unnecessary delay in introducing new technology in the company. The report further concluded that a strategic partner is necessary to prepare a competitive and dynamic business plan, to implement a business model in a reliable manner, and to ensure Quality of Service.
Source: THT
The Finance Ministry has been shelving the plan to bring a strategic partner for Nepal Telecom, blamed the Ministry of Information and Communications (MoIC).
A committee formed by the Finance Ministry last year had suggested the government to divest up to 30 per cent of its stake in Nepal Telecom (NT) so as to pave the way for a strategic partner in the state-owned telecom operator.
The entire process of bringing a strategic partner at Nepal Telecom has been halted due to the Finance Ministry, said secretary at MoIC Surya Prasad Silwal. He blamed the Privatisation Committee for the delay.
The meeting of the finance minister-led Privatisation Committee should be held to take a decision on privatising public enterprises, according to the Finance Ministry.
“But the meeting has failed to take place due to finance minister Barshaman Pun.”
The finance minister often pledges to conduct the meeting at the earliest but has never done so putting the agenda of bringing a strategic partner at NT in limbo, an official at the ministry said.
It is unfortunate that the plan to bring a strategic partner has been delayed due to the finance minister’s reluctance, the source said. “NT is in dire need of a strategic partner but all politicians and MoIC officials have been milking NT and are reluctant to implement any reform agendas.”
The government and the strategic partner must not be allowed to transfer their shares until after five years of acquiring the shares, the committee had recommended.
The report has suggested the government to calculate the share value of the company based on the premium valuation method. It has also suggested that the strategic partner should have an experience in operating telecom services in at least three countries including a country from the G22 group.
The aspirant partner should have an experience of handling at least 20 million subscribers in PSTN and mobile service, the report said, adding that the new partner should invest at least Rs 30 billion to Rs 40 billion in NT.
The report has asked the government to bring in only those firms whose yearly income is more than $ one billion. It has asked the government to include a representative from the company that becomes a strategic partner in the executive board of Nepal Telecom.
The committee had emphasised on bringing a strategic partner due to the unnecessary delay in introducing new technology in the company. The report further concluded that a strategic partner is necessary to prepare a competitive and dynamic business plan, to implement a business model in a reliable manner, and to ensure Quality of Service.
Source: THT
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