Privatisation and Regulatory advice

Our assistance to government bodies responsible for the design and implementation of privatisation programmes covers the whole privatisation process.

Examples

development of privatisation methods such as public subscription of shares, public auction, public tender, direct negotiations, transfer of the state or municipal control in an enterprise to private investors, lease with the option to purchase;
assistance to State Property Funds or similar organisations to privatise state-owned property;
improvement of technical skills, through on-the-job and workshop-based training of the staff responsible for privatisation;
assistance to bankruptcy and liquidation agencies and processes;
provision of legal support and training in drafting and finalising privatisation transaction documents (e.g. contract of sales);
support and training in public advertising to market the sale of state enterprises internationally;
valuations and company diagnoses with actual and potential competitive position for the company and per Strategic Business Unit in the world competitive game;
development of various forms of Private Sector Participation (BOO, BOT, concessions etc.).

Moreover, successful privatisation requires the development of effective regulatory authorities capable of monitoring the market and enforcing regulation. Our services to privatisation agencies and ministries therefore cover regulatory reform and institutional strengthening of regulatory authorities.

Examples

design of regulation and legal advice;
regulatory impact assessments;
training and other forms of capacity building.

Project Examples

Albania: In a 750k EUR project PC&A provides technical support to the Government of Albania (GoA) in the continued design and implementation of a Regulatory Management System, including the design and implementation of a Regulatory Impact Assessment (RIA) system. The tasks include among others capacity building and review of the GoA’s regulatory reform abilities, design of a detailed work plan for the implementation of a regulatory management system in Albania; preparation of a consolidated guideline for RIA (including recommendations) and technical assistance in drafting relevant laws and/or regulations and in designing and implementing RIA pilots, etc.
Kosovo: In a 3.5 M EUR project PC&A provides technical assistance to the Privatisation Agency of Kosovo in facilitating privatisation and liquidation of socially-owned enterprises (SOEs). The project is aiming at supporting the economic development of Kosovo through privatisation and liquidation processes in order to enable increased investments in the productive manufacturing and service sector in Kosovo as well as the Kosovo Trust Agency (KTA) to undertake internal audits of the KTA itself and of the privatisation process and the SOEs under privatisation.
Kosovo: In a 700k EUR project PC&A is assisting the Ministry of Trade and Industry in Kosovo to establish Municipal Business Centres (MBCs) in 22 municipalities throughout Kosovo. Among others, the following services will be provided: municipal level analysis of regulations; needs assessment study for the MBCs (incl. trainings of civil servants); draft of municipal decisions necessary to establish the legal status of MBCs in the new system; development of standardized operational procedures for MBCs for issuing permits and carrying out municipal inspections, and the preparation of an Operational Manual.Kosovo: PC&A was selected by the EAR to assist Kosovo Trust Agency (KTA) in incorporating and re-organising 10 Publicly Owned Enterprises (POEs), namely the seven regional waste companies and three regional irrigation companies. PC&A led the process of incorporation i.e. transformation of the POEs into J.S.C (Joint Stock Companies) and delivered a series of training sessions for each enterprise to be incorporated, ensuring full understanding of the incorporation process and requirements in the management of the enterprises.
Kosovo: PC&A was called upon to inform the decision makers in Kosovo on the possible options for a public private partnership for the investment required for opening the SW Sibovc Mine and rehabilitation of existing generation units, for private participation for the new power plant and related lignite mine and the market reaction to these options.
Algeria: In a 4,6 M EUR programme stretching over 4 years, PC&A assists the Ministry of Privatisation and Investment Promotion, as well as the State Holding companies that control the SOEs in Algeria, implement the Algerian government’s privatisation and investment promotion programme. The Project comprises three components: First, direct assistance to the design and implementation of the privatisation strategy, debt and social restructuring, the identification of the most appropriate privatisation method for each company, as well as investor search. The priority sectors include agro-business, textile and clothing (including leader), construction and public works, hydraulics, and the service sector (tourism, transport etc). Second, improvement of the legal and institutional environment for privatisation and investment promotion, including review and suggest amendments to the investment legislation, draft procedures for the liquidation of non-viable enterprises, and prepare recommendations to improve the transfer of ownership of land and real estate to the private sector, and improvement of the communication and investment promotion means used to attract foreign investors. The third component is institutional strengthening and support, including training to 120+ professionals and IT upgrading (2004-2008).
Website: http://www.mdppi.dz
Algeria: Privatisation programme. We assisted the Algerian National Council for Privatisation and the Ministry of Industry and Restructuring in the preparation and implementation of the privatisation programme (1999).
Armenia: As part of the wider donor support programme for institutional, legal and administrative reform in Armenia, PC&A, on behalf of the Association of Bankruptcy Administrators and Independent Experts (ABAIE,) designed and delivered seminars on bankruptcy law and practices to a wide audience, and published an insolvency manual for businessmen (2004).
Bosnia and Herzegovina: Assistance to the Agency for Privatisation (FPA) in the Federation of Bosnia and Herzegovina and the Directorate for Privatisation (DfP) in the Republika Srpska in privatising 20 strategically important enterprises in various industries (2001-2003).
Hungary: The Ministry of Industry and Trade asked us to assist in the definition of an industrial strategy and privatisation strategy for the aluminium industry.
Liberia: PC&A assisted the Liberian Electricity Corporation in developing a new Electricity Act in view of the restructuring and privatisation of the electricity sector in Liberia. The new Electricity Act was also accompanied by a new Utilities Regulatory Act and a new Investment Protection Act. Together, these laws cover all areas required for effective regulation of the electricity market, including sector governance, electricity market compliance, competition enforcement, market abuse, user obligations, electricity standards, environmental issues, financial procedures, etc.
Jordan: In a 4 M EUR project ranging over four years, provides assistance to the Jordanian Executive Privatisation Commission (EPC) with the aim of making it an enforced driver of a faster and more far-reaching privatisation process in Jordan. We provide hands-on assistance to the EPC to successfully carry out specific privatisation transactions in the fields of transport (rail, aviation and public transport), electricity, postal services, telecommunications, municipal services, medical waste, solid waste, tourism, silos and abattoirs, and water and sewerage. Privatisation methods include management contracts, BOT-contracts, concessions and sale of assets. In addition, we assist in strengthening the EPC’s institutional capacity to design and implement the privatisation programme. This includes organisational re-engineering, preparation of manuals of procedures, communication and PR, and training (2004-2008).
Website: http://www.epc.gov.jo
Morocco: Within the Moroccan privatisation programme, PC&A was asked to prepare a restructuring strategy for the OCE-Group, a state-controlled enterprise which until 1986 had a monopoly for the export of agricultural products but which had since seen its market share plummet causing massive financial losses. After weighting the pros and cons of restructuring versus liquidation, a restructuring plan was prepared with the aim of reaching the break-even point within 48 months.
Pakistan: In an Asian Development Bank (ADB) funded project, PC&A was contracted to assist the Government of Pakistan in developing policy reforms related to Private Participation in Infrastructure (PPI). This entailed formulation of a strategy, policy and subsequently an implementation plan for reforms to enable PPI in Pakistan. Focus sectors were: water supply and sanitation, road system, urban transport, the electrical power sector, and the telecommunication sector.
Romania: Liquidation assistance. We assisted the State Ownership Fund of Romania in the on-going liquidation of 24 companies.
Tajikistan: The Strategic Plan for the Privatisation of Medium and Large Enterprises and for the Restructuring of Natural Monopolies and the Largest Enterprises for 2003-2007 lays out the Government’s privatisation policy for large and medium enterprises, and defines a list of enterprises to be subject to privatisation and restructuring. We completed two yearly reviews of compliance with the Regulations on the Procedures to Sell State Property at Auctions and Tenders.
Tunisia: Assistance to the General Directorate of Privatisation in privatising the state owned lime production and distribution company Société Tunisienne de Chaux. The project was implemented in for phases: (1) Technical and economic study of the feasibility of the privatisation; (2) Marketing campaign and investors search; (3) Preparation of legal documents; and (4) Assistance in the evaluation of offers.
Tunisia: PC&A assisted the Comité Général des Assurances (CGA), the Tunisian institution in charge of monitoring the insurance industry, in preparing its transformation from an organisation within the Ministry of Finance into an autonomous administration with Authority status, implying increased financial and administrative autonomy.
Turkey: PC&A was asked by the Turkish Treasury to assist the General Directorate of Insurance in upgrading their prudential regulation and their surveillance system in line with EU standards. This was achieved through the development of an accounting system for the insurance sector in line with IAS, the establishment of new principles for statistical reporting and the development of an IT system for improved financial monitoring of the sector.