Privatization Technical Assistance Project

closed

The Privatization Technical Assistance Project will help accelerate large scale privatization, through the tender sale of state-owned enterprises, and, help prepare the legal, and regulatory frameworks, required for divestiture operations. The components call for: 1) tender privatization, to assist the Government in the sale of state-owned enterprises (not undergoing special privatization programs) to strategic local, and foreign investors. Emphasis will be given to transferring majority ownership of public enterprise assets, into private ownership; 2) finance, and advice provision on utility privatization under special privatization programs, which includes both, the preparation of legislation, and regulatory framework for the divestiture of utility companies, as well as the actual sale of companies to strategic investors; 3) technical assistance with unbundling concessions, and insolvency procedures, to be provided to large enterprises, and holding companies, including the preparatory steps to attract potential investors for the separated entities. Private sector participation will be ensured through concession agreements, and, affected enterprises will be protected under insolvency legislation, and accelerated procedures; and, 4) capital markets development, by assisting Government Entities, and the Securities Commissions in facilitating the completion of voucher privatization, creating regulatory frameworks required for trading, and revision of securities, and formulating stock exchange legislation, commercial codes and bankruptcy laws. In addition to the four components, the project aims at strengthening institutional building, and administrative capacity for project implementation.