Techniques of Privatization of State-Owned Enterprises TECHNIOUES of PRIVATIZATION of STATE-OWNED ENTERPRISES

WORLD BANK TECHNICAL PAPER NUMBER 90 WTP- 90 Techniquesof Privatization of State-Owned Enterprises Public Disclosure Authorized Volume III Inventory of Country Experience and Reference Materials

Rebecca Candoy-Sekse with the assistance of Anne Ruiz Palmer Public Disclosure Authorized EUT2mr !1_.r U 7-w Public Disclosure Authorized Public Disclosure Authorized RECENT WORLD BANK TECHNICAL PAiPERS '

No. 50. Turtiainen and Von Pischke, Investment and Finance in Agricultural Service Cooperatives No. .51 Shuval and others, Wastewater Irrigation in Developing Countries: Health Effects and Technical Solutions No. 52. Armstrong-Wright, Urban Transit Systems: Guidelines for Examining Options (also in Spanish, 52S) No. 53. Bamberger and Hewitt, Monitoring and Evaluating Urban Development Programs: A Handbookfor Program Managers and Researchers (also in French, 53F) No. 54. Bamberger and Hewitt, A Manager's Guide to "Monitoring and Evaluating Urban Development Programs: A Handbookfor Program Managers and Researchers" (also in French, 53F; Spanish, 53S; and Chinese, 53C) No. 55. Technica, Ltd., Techniques for Assessing Industrial Hazards: A Manual No. 56. Silverman, Kettering, and Schmidt, Action-Planning Workshopsfor Development Management: Guidelines No. 57. Obeng and Wright, The Co-composting of Domestic Solid and Human Wastes No. 58. Levitsky and Prasad, Credit Guarantee Schemes for Small and Medium Enterprises No. 59. Sheldrick, World Nitrogen Survey No. 60. Okun and Ernst, Community Piped Water Supply Systems in Developing Countries: A Planning Manual No. 61. Gorse and Steeds, Desertification in the Sahelian and Sudanian Zones of West Africa No. 62. Goodland and Webb, The Management of Cultural Property in World Bank-Assisted Projects: Archaeological, Historical, Religious, and Natural Unique Sites No. 63. Mould, Financial Information for Management of a Development Finance Institution: Some Guidelines No. 64. Hillel, The Efficient Use of Water in Irrigation: Principles and Practices for Improving Irrigation in Arid and Semiarid Regions No. 65. Hegstad and Newport, Management Contracts: Main Features and Design Issues No. 66F. Godin, Preparation of Land Development Projects in Urban Areas (in French) No. 67. Leach and Gowen, Household Energy Handbook: An Interim Guide and Reference Manual (also in French, 67F) No. 68. Armstrong-Wright and Thiriez, Bus Services: Reducing Costs, Raising Standards No. 69. Prevost, Corrosion Protection of Pipelines Conveying Water and Wastewater: Guidelines No. 70. Falloux and Mukendi, Desertification Control and Renewable Resource Management in the Sahelian and Sudanian Zones of West Africa (also in French, 70F) No. 71. Mahmood, Reservoir Sedimentation: Impact, Extent, and Mitigation No. 72. Jeffcoate and Saravanapavan, The Reduction and Control of Unaccounted-for Water: Working Guidelines No. 73. Palange and Zavala, Water Pollution Control: Guidelines for Project Planning and Financing No. 74. Hoban, Evaluating Traffic Capacity and Improvements to Road Geometry No. 75. Noetstaller, Small-Scale Mining: A Review of the Issues No. 76. Noetstaller, Industrial Minerals: A Technical Review

(List continues on the inside back cover) Techniques of Privatization of State-Owned Enterprises TECHNIOUES OF PRIVATIZATION OF STATE-OWNED ENTERPRISES

Volume I Methods and Implementation

Charles Vuylsteke

This volume (World Bank Technical Paper No. 88) reviews how privatizationof state-ownedenterprises has been accomplishedby drawing upon a broad sample of experiences. It describes and illustratesmethods which have been tried out and some of the available options.

Volume II Selected Country Case Studies

Helen B. Nankani

This second volume (World Bank Technical Paper No. 89) presents country case studies analyzing transactionscarried out by seven countries with a significant record of experience, namely Canada, Chile, Italy, Malaysia, Spain, Sri Lanka, and Togo. They were written in support of the analysis of techniquesof privatizationpresented in the first volume.

Volume III Inventory of Country Experienceand ReferenceMaterials

Rebecca Candoy-Sekse with the assistanceof Anne Ruiz Palmer

This third volume (World Bank Technical Paper No. 90) contains an inventory of planned, ongoing and completed privatizationtransactions in 83 countries indicating the methods used. It presents data collected for the purpose of examining the record of experiencewith varying techniquesof privatization. A systematic listing of relevant referencematerial is also included. WORLD BANK TECHNICAL PAPER NUMBER 90

Techniques of Privatization of State-Owned Enterprises Volume III Inventory of Country Experience and Reference Materials

Rebecca Candoy-Sekse with the assistance of Anne Ruiz Palmer

The World Bank Washington, D.C. Copyright (@)1988 The International Bank for Reconstruction and Development/THE WORLDBANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing July 1988 Third printing August 1989

Technical Papers are not formal publications of the World Bank, and are circulated to encourage discussion and commnentand to communicate the results of the Bank's work quickly to the development community; citation and the use of these papers should take account of their provisional character. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. Any maps that accompany the text have been prepared solely for the convenience of readers; the designations and presentation of material in them do not imply the expression of any opinion whatsoever on the part of the World Bank, its affiliates, or its Board or member countries concerning the legal status of any country, territory, city, or area or of the authorities thereof or concerning the delimitation of its boundaries or its national affiliation. Because of the informality and to present the results of research with the least possible delay, the typescript has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to Director, Publications Department at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to photocopy portions for classroom use is not required, though notification of such use having been made will be appreciated. The most recent World Bank publications are described in the catalog New Publications,a new edition of which is issued in the spring and fall of each year. The complete backlist of publications is shown in the annual Indexof Publications,which contains an alphabetical title list and indexes of subjects, authors, and countries and regions; it is of value principally to libraries and institutional purchasers. The latest edition of each of these is available free of charge from the Publications Sales Unit, Department F, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A., or from Publications, The World Bank, 66, avenue d'Iena, 75116 Paris, France.

Rebecca Candoy-Sekse is an operations assistant, Industry and Energy Department II, Asia Region, the World Bank. Anne Ruiz Palmer is a research assistant, Legal Department, the World Bank.

Library of Congress Cataloging-in-Publication Data

Techniques of privatizationof state-owned enterprises.

(World Bank technical paper ; no. 88-90) Includes bibliographies. Contents: v. 1. Methods and implementation/ Charles Vuylsteke -- v. 2. Selected country case studies / Helen Nankani -- v. 3. Inventory of country experience and reference materials / Rebecca Candoy-Sekse,with the assistance of Anne Ruiz Palmer. 1. Privatization. 2. Privatization--Casestudies. I. Vuylsteke, Charles, 1947- . II. Nankani, Helen. III. Candoy-Sekse,Rebecca, 1956- IV. Ruiz Palmer, Anne, 1954- V. Series: World Bank technical paper ; no. 88-90.

HD3850.T436 1988 338.9 88-20699 ISBN 0-8213-1111-5 (v. 1) ISBN 0-8213-1112-3 (v. 2) ISBN 0-8213-1113-1 (v. 3) - v -

A B S T R A C T

This report was initiated largely in response to interest by member governments and staff of the World Bank for information on the practical aspects of privatization of state-owned enterprises. It reviews what is known about the recent experience of selected developing countries and developed countries. It describes and illustrates methods that have been tried and options that are available to goverrlnents. The report deals strictly with techniques (that is, how to privatize and not whether to privatize). The issues analyzed are the most recurrent in the process of implementing privatization.

The report, which consists of three volumes, is largely the result of a cooperative effort by various contributors within and outside the World Bank. Volume I, Methods and Implementation, relies extensively on Volume II, Selected Country Case Studies, and Volume III, Inventory of Country Experience and Reference Materials.

- vii -

FOREWORD

The information provided in Volumes II and III has been collected in support of the analysis of techniques of privatization presented in Volume I.

Governments preparing for or implementing privatization draw extensively on the experience of other countries. As details on individual countries' specific transactions or overall programs are not otherwise available in any comprehensive form, it was decided to publish the information and data contained herein.

The studies contained in Volume II are a collection of background papers analyzing the experience of some of the countries that have a significant record of experience with various relevant methods of privatization. The limited time and budget applied to these studies have not permitted a consideration of all economic, financial and other issues that arose with respect to privatization in the countries reviewed. Thus, they do not provide an exhaustive analysis or assessment of the individual transactions reviewed. The purpose of the papers is to provide the salient features of the privatization experiences in the countries covered and some emerging lessons; the user may seek additional information on various experiences from relevant sources or authorities.

Ms. Helen Nankani, author of Volume II, is a consultant who has assisted the Bank in the past on state-owned enterprise restructuring operations. Sources are indicated in each individual study. In most instances, information was gathered and analyzed on a desk basis through a review of readily available data and documentation; some information was drawn from World Bank experience as part of the process of supervising state-owned enterprise adjustment efforts. In the cases of Italy (IRI), Malaysia, Spain and Sri Lanka, additional information was gathered through brief field visits, affording the consultant an opportunity to discuss findings with the relevant authorities and sources. The work was carried out with the support of the Bank's former Public Sector Management and Industrial Restructuring Divisions as well as the Bank's Research Committee.

Part I of Volume III contains an inventory of planned, ongoing and completed privatization transactions in 83 countries. It is being published in view of the demand for data on privatization. However, the author, Ms. Rebecca Candoy-Sekse, wishes to point out that the information provided is uneven; while information is readily available and verifiable for some countries, for many others it is only sporadic and incomplete. Although extensive verifications were carried out, the limited time and budget applied to this research severely constrained our ability to go beyond simple desk surveys or to verify data with the relevant authorities in the respective governments, except in certain limited cases such as France, the U.K., the U.S. and the countries included in Volume II; the assistance of the relevant authorities in those instances is gratefully acknowledged. - viii -

Ms. Candoy-Sekse was, at the time of the initiation of this report, on the staff of the Bank's Industrial Restructuring Division headed by Mr. Anil Sood, who contributed to, and helped define the methodology of, this report; she is now an Industry and Energy Operations Officer in the World Bank's Asia Department. Extensive contributions were made by Ms. Anne Ruiz Palmer, Research Assistant in the Legal Department of the Bank and Ms. Chantal Toussaint-Willot (consultant). Ms. Ruiz Palmer provided substantial editorial assistance as well as research on several countries. The help of many others should further be acknowledged, including staff in the offices of Executive Directors of the World Bank and in country departments of the Bank. The extensive assistance of Ms. Anjali Villagran in producing the final manuscript is also acknowledged.

Part II of Volume III is a systematic listing of some of the reference materials used in the preparation of the report. It was edited by Ms. Anne Ruiz Palmer. Invaluable assistance was provided by Ms. Linda Thompson and Ms. Vivian Richardson in identifying and locating relevant source material. The listing of particular materials does not imply acceptance of analysis or recommendations made therein. It does indicate that useful elements with respect to various techniques were found in them.

The research and analysis conducted by the authors, Ms. Nankani and Ms. Candoy-Sekse, has been essential in completing Volume I of this report. Not only have their knowledge of state-owned enterprises and famil- iarity with business in different economic environments greatly facilitated the collection and review of country data, but they have made significant contributions to the analysis of the salient features of many specific transactions in the main report. Their contributions and that of Anne Ruiz Palmer are gratefully acknowledged.

Charles Vuylsteke - ix -

TABLE OF CONTENTS

Page No.

PART I: INVENTORY OF COUNTRY EXPERIENCE

INTRODUCTION ...... 1

American Samoa to France. 3

Gabon to Jamaica ...... 24

Japan to Sierra Leone ...... 37

Singapore to Zambia ...... 57

(Countries are listed alphabetically)

PART II: REFERENCE MATERIALS

A. General ...... 76

B. By Country or Region ...... 78

C. By Areas and/or Techniques of Privatization ...... 88

PART I

INVENTORY OF PRIVATIZATION

Introduction

Part I of this Volume contains, for a large sample of countries, a list of transactions for the privatization of State-Owned Enterprises (SOEs) being planned, under way or having been completed, with indications as to the method used (to the extent the information was found to be readily available). It is the result of a survey conducted in view of sampling privatization techniques only. A number of instances reported may not represent significant divestitures in terms of assets, employment, etc.

In brief, the different techniques applied in respect of privatization activity in different countries are listed under the following main categories:

Public Offering of Shares (full or partial)

Private Sale of Shares (full or partial)

Sale of Government/SOE Assets

Reorganization into Component Parts

New Private Investment in SOE

Management/Employee Buy-Out

Lease

Management Contract

In many cases, a combination of some of the above is being planned or has been applied. Likewise, in some instances, if one of the above techniques requires or has required restructuring or transformation of the SOE, that would also be indicated.

Eighty-three countries have been included in the inventory. They appear in alphabetical order.

The information used for this inventory was obtained from World Bank and other agencies' reports, Volume II of this report comprising the country case studies, as well as other publications and articles dealing with privatization. Some source documents have restricted distribution and where such is the case, information has generally been limited to that which is public knowledge or is otherwise available. Furthermore, extensive verifications of information were conducted; many reported transactions which could not be verified had to be omitted. -2-

Specific sources are only sporadically indicated in the text, since much of the information is an aggregate result of reviews by internal sources and scattered source material. With few exceptions, data have been updated only up to December 1987. Countries with no transactions underway or completed are generally not reported, even though transactions may be planned.

Despite uneveness in available data, this inventory was thought to constitute a useful tool, in particular for governments or their agencies seeking information on other countries' experiences. No representation, however, is made as to the accuracy of the information provided. It is reproduced for illustrative purposes only. In particular, listings of particular enterprises as planned or underway cannot be taken as indicative of formal decisions to proceed by the relevant authorities. In some instances, for example, enterprises are simply being diagnosed in view of possible privatizations; executive or legislative action to authorize individual transactions may be necessary in many cases. In respect of many SOEs, a specified method of privatization is indicated for transactions which are planned or under way; while these may be intended methods, the actual methods applied will of course depend entirely on the outcome of the transactions. Furthermore, these tables are known not to comprise many recent developments in continuously changing government programs, and not all countries which have undertaken privatization are included. Some which are included have plans to privatize large numbers of SOEs which are not necessarily reported in detail as being planned. In some countries, for instance, all SOEs in certain groups--such as commercial, industrial or financial companies--are, in principle, to be privatized. Numbers of planned privatizations are therefore substantially higher than those reported herein. T PLIVAIZATIONTECHNI&UES T T COUNTRY ENTERPPISE ICTIVIY AEHOD/PROCEDURE SIZE INDICATOF COMMENTS

AMERICANSAMDA

CG"PLETED: v.a. cuelStoraqe Lease. - Long tere lease was awardedto PACIFICRESOURCES INC. n.a. FoodProcessino Lease. MARINERAILWAY AND SHIc Lease. - Leasewas awarded to SOUTHWESTMARINE INC. in January 1985and for REPAIRFACILI; 15 years. RAINMAKERHOTEL hotel Private sale.

Source: Privatization Possibilities AmongPacific Island Countries (C. Feinstelr).

ARGENTINA aLANNED: PETROOUIMICABAHIA Petrochemicals CaDital: A 126.3. - POLISUR,part of the petrochesical complexof BAHIABLANCA is being BLANCA lIQ85O prcvatized. BAHIABLANCA is 497,privately owned. OPALINAS Industry FETROGUINICAGENERAL Petrochemicals - Privatization willrequire scecial legislation. FABRICANILITAR DE Manufacturing Private sale. - Negotiating w! McDonnellDouglas (US), Aeritalia (Ital;) and Embraer AVIONES (Brazil) on joint production agreementst/c would result in modernization of facilities & attraction of companyto private investors. ypCrIIENTOSPETPOLIFERAS State 0:! Sale cf assets. Assets: $ 9.10 {1 - Soaeof the service activitiesto be sold. However.the core element (YPr) 11984) of oil, transport and the ut;lities a,e all Iilely to remainin state hands. FERROCARRILES Railways Sale of assets. - Governmentus pressing aheadwith plans to sell off peripheral oarts of the large railways organization. SOMISA Steel UNDERWAY:PETROGUIMICA GENERAL Fetrochemicals Public o'ferinq. Capital: A l86,tm - Sharesof up to 491 has been on offer for past two years out nobody i. moSCON; (1l9851 has comeforward to makea concrete offer. SOEV Private sale. - Frivatocation financed through debt/equity Swap. 7 ATANORCOMPANIA Petrochemicals Public offering/Private Capital: A 50. m - Governaentwill sell minority shareholdungthrough stock exchange. NATIONAL sale. 19185' - ATANORis already 797.privately owned. - Governmenthas issued Decree1311 giving details on privatization. POLISURSOCIEDAD MIXTA Petrochemicals Private sale Capital: A 5E.5m - iPAK;, a private concern owns701 of POLISUR. (19851 - Governmenthas issued Decree1314 giving details on privatization. Domesticand foreign bids will be accepted. INDbLCORSOCIEDAD NlITA Petrochemicals Private sale Capital: A 46.0n - INDUIBA,a private concern oawns70X of INOLCLOR. l9B51 - Governmenthas issued Decree1314 Riving details on privatization. Domesticand foreign bids will be accepted. MONOMEROSvINILDS Petrochemicals Private sale. Cacital: A 20.8m - VINICLOR,a private concern owns70X of NONOMEROS. l9E5) - Governmenthas issued Decree1314 giving details on privatization. Domesticand foreign bids will be accepted. PETROPOLSDCIEDAD NIXTA Petrochemicals Private sale. Capital: A 5,0w - POLIOLEFINAS,a private concern owns70X of PETROPOL. (19851 - Governmenthas issued Decree1314 giving details on privati:ation. Domesticand foreign bids mill be accepted. CARBOGOUIMICA letrochemicals Private sale. (5) Capital: A 2.3w - SAICRAGOR, a orivate concern owns587. of PETROPOL, ARGENTINAS.A. i19851 - Governmenthas issued Decree1313 giving details on privatization. FOR'AAR6ENTINA S.A. Steel Private sale. - Governmenthas issued Decree1312 giving details on privatization, Domesticand foreign bids willbe accepted. [TELEPHONECOMPANY] TelecommunicationsPrivate sale. - Discussionsof sale of 40X of ENTELto a Spanish companyare underway. AEROLINEASARGENTINAS Airline Private sale. - Discussionsof sale of 40X of the airline to SCANDINAVIANAIRWAY SYSTEMare underway. PETROGUINICARIO Petrochemicals Capital: A 92.4. - 61eof RIOTERCERO is ownedby private owners: ATANoR.VIA VALROSA, TERCERO (1985) HISISAand others. Decree1505 authorizes RIOTERCERO's sale. PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZEINDICATOR COMMENTS

COMPLETED:AUSTRAL Domestic Airline Private sale. Sale Price: S 28i - First sizeable privatization of Alfonsin's Government. - Sold to CIELOSDEL SURD subsidiary of the Argentine heavy engineering group PESCARMONA-RIVA.CIELOS' bid forAUSTRAL's three leased DC9s, 8 BAC IIIaircrafts, hangars, workshopsand spares was $ lw above floor price set earlier this year by the Ministry of Public Works whichadjudicated the tender. - Sowe$ 04. has already been paid under the agreesent forthe DC9s which includes an option to buy. Thesale agreewentcalls for201 of the S 28. to be paid ismediately andthe rest in 10 semi-annual installwents. The newowners have also agreed to refurbish the aging BACIII aircraft by spendingN 4a. - Prior to AUSTRAL'ssale, it beganto showoperating profits and was offeredfor sale in February, free of its debts which the government is to assume. SOLJET TRAVEL AGENCY Tourism Private sale. Proceeds:N0.6w SIAT GASTUBE FACTORY Manufacturing Private sale. Proceeds:S8.0m

(Dl The sign "1, unless otherwise indicated, meansUS$ equivalent.

AUSTRALIA

PLANNED: International Airport Lease. terainals AIRCRAFTFACTORY Lease. AEROSPACE TECHNOLOGIES Aircraft I OFAUSTRALIA Construction UNDERWAY:DEFENSE SERVICE HOME Financingand Sale of assets. - 6overnmenthas issued a public invitation for 'Proposal to LOANSCHEME HomeInsurance Purchase'. I NATIONALMATERIALS Materials Testing Sale of assets. - A Commonwealthowned research organization has beengiven first right HANDLINGBUREAu and Research of refusal in this proposedsale. COMPLETED:BELCONNEN MALL Retailing Sale of assets. - Sale of business by tender. It was purchasedby an Australian private developer in a world-wide advertised sale. WILLIAMSTOWNDOCKYARD HeavyConstruction Sale of assets. - Sale of business by tender. PRIMARYINDUSTRY BANK Dank Private sale. - Sale of the Comaonwealthminority interest. OFAUSTRALIA COMMONWEALTHACCOMODATION Catering Service Private sale. ANDCATERING SERVICE and Accowodation

AUSTRIA

PLANNED: CHEMIELINZ Chemicals Private sale. Assets: $ 402m (19841 OEIA6 Industrial Public offering. Workforce: 100,000 Holding Cospany (1986) AUSTRIAMETALL Aluwiunum GRAZ-KOFLACHEREISENBARN UNDBER6BAU GMBH FEPLA-HIRSCHGMBH FUTURITWERK As OESTERREICHiSCHE Electricity Public Offering - 6overnmentplans to sell 49X of the Companyand 49%of Austria's ELEKTRIZITAETSWIRTSCHAFT 8 big powerproduction groups for a total of S 618n. Privatization is foreseen in 1989. CREDITANTSTALT- Bank - Governmentwants to cut its 60%holding in Austria's biggest bank BANKVEREIN to 51Xbut timetable has not been announcedyet. AUSTRIANAIRLINES Airline - Governmentowns 1002 of Airline. Privatization foreseen in 1988. COMPLETED:LANDERBANK Bank Public Offering. Net Profit: Sch. 182a- Shareswith a face value of SchlOOm were sold in October, 1987. The PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

(1986) Governmentnow onws531. OMV Petroleum Public offering. Assets: $ 1.5B Owning100% of DMV,Government through DIAGsold 25%of shares on the (1984) Vienna Stock Exchangeand intends to sell a further 24%. BAYOUSTEEL COMPANY Steel

BANGLADESH

PLANNED: RUPALIBANK Cossercial Bank Pubiuc Offering - 6ovt. will reduce holdings to 51% BANGLADESHSHIPPING Shipping CORPORATION PHILIPS Manufacturing - 6ovt.'s 35% to 40%holdings to be reducedto 10%to 20%. PHIZER Drugs Manufacturer - 6ovt.'s 35% to 40%holdings to be reducedto 10% to 20%. GEC - Govt.'s 35%to 40%holdings to be reducedto 10% to 201. BANGLADESHTOBACCO - Govt.'s 35% to 40%holdings to be reducedto 10 to 20%. BANGLADESHBIMAN Airline Private sale. Net Revenues:* 1.3e - Govt.is considering selling up to 49%. (1) (1904) - Over 650 publicly-owned industrial enterprises divested to private sector, 1982-87. COMPLETED: BANGLADESHAGRICULTURAL Fertilizers, Private sale. - USAIDhelped 6overneent to privatize +distribution. DEVELOPMENTCORPORATION Irrigation equip. BANGLADESHMACHINE TOOLS Manufacturing Managementcontract. - Contract awardedto FABRIOUENATIONALE HERSTAL SA of FACTORYLTD. Belgium. (2) SOEJUTE AND TEXTILE Textiles Private sale. - 30+ mills sold to previous ownersre-privatized under lawsigned MILLS in September1982. (3) PUPALIBANK ComeercidlBank Public offering. UTTARABANK CommercialBank Public offering. Un OSMANIAGLASS Manufacturing Public offering. - 49%private holdings EASTERNCABLES Manufacturing Public offering. - 49%private holdings. DHAKAVEGETABLE OIL Food ManufacturingPublic offering. - 49% private holdings planned, not yet achieved. (4(

(1)Divestiture of SOEsin LDCs(E. Berg). (2)Management Contracts (5/86). (3)Privatization (ADBConference). (4) CIDAand USAIDStudies (1987).

BELGIUM

PLANNED: BRUSSELSNATIONAL Airport Public offering. - Floatation of Brussels Airport Terminal (BATC)has been AIRPORT approvedby Government.BATC will havea share capital of some* 98m divided roughly one third eachamong RE61E DES VOIES AERIENNES (the 6Overnmentexisting airport authority), four major institutional shareholders and ordinary shareholders. Minority shareholderswould also be reserved for airport users and airport personnel.

BENIN

PLANNED: SONAE Vehicle Imports - Decision to fully privatize SONAEwas made in February, 1987. (1) ONATHO Touriss Sale of assets, - Assets contributed to newmixed public/private company. COBENAM Shipping - To be partially privatized. COENlAM'sviability is to be evaluated in light of entry in freight forwarding business of private firms. AGB Food Distribution - To be fully privatized, ONPB Pharsaceutics Sale of assets, - Assets contributed to newmixed public/private company. SOBETEX Textiles OBECI Movie Theatres - To be fully privatized. RAVINAR Ship Supplies - To be fully privatized, PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY NETHOD/PROCEDURE SIZE INDICATOR COMMENTS _- -- S-NAC---- _rindin- _ C_- -ker _underta_en._ To be p_rtially_ pr_vted. Diagnost_cstudies to be SONACI Clinker Grinding - To be partially privatized. Diagnostic studies to be undertaken. SCB Clinker 6rinding -To be partially Privatized, Diagnostic studies to be undertaken. OBI ComputerService To be partially privatized. CNRTP Research - To be partially orivatized. STRADEDE L'ANITIE Stadium - To be partially privatized. UNDERWAY:BBD DevelopmentBank Sale of assets/Liquidation. - To be partially privatized. BANDUECOMMERCIALE DU CommercialBank Private sale. - To be partially privatized. BENIN

BOLIVIA

- SupremeDecree 210b0of August, 1905mandates dissolution of someSOEs and reorganization and decentralization of others. (1)

UNDERWAY:COMIBOL Mining/Tin Sale of assets. - 6overnmenthas decided to close someplants and scale domnoperations. Underplanned overhaul, several of CDIMIBOL'smining companiesare to be maintained and rehabilitated in reduced,decentralized form. Tmo are to be phasedout and the others are to becoeecooperatives if workers accept thee. COMPLETED:ENTA RoadTransport Sale of assets/Liquidation. - ENTAhas beendissolved and its vehicles mere transferred to different municipalities, which were free to establish their omncompanies or sell assets to private sector. (l)

(I) Divestiture of SOEsin LDCs(op. cit.)

BRAZIL

- Decreeof March, 19BBon Destatization Program"calls for deregulation projects and for privatization projects, including minority shareholdings, and controlling interests in companiesapproved by decree (including manyindirect holdings). - Manyenterprises listed are indirect participations of the State. - Listings do not include SOE'sowned by the states. - Most completedtransactions are reprivatizations. PLANNEDAND UNDERWAY: USINASSIDERUR61CAS DE Industry Public offering. - USIMINASis to be transformed into a public company. Controlled by MINAS6ERAIS (USIMINAS) SIDERBRAS. PETROBRASBUIMICA Chemicals Public offering. - Sale of equity capital is foreseen but state control is to be (PETROOUISA) maintained. Controlled by PETROBRAS. PETROBRASDISTRIBUIDORA Gas Distribution Public offering. - Sale of equity capital is foreseen but state control is to be (BR) maintained. Controlled by PETROBRAS. TELEBRASTELECOMMUNICA- Telecommunications Public offering. - In goodfinancial condition and its capital mill be openedlike TIONSCORPORATION PETROBRAS;soae equity capital to be sold but state control is to be maintained. - TELEBRASis a national holding companyowned 70X by the Federal Union and 301 by subscribers. - TELEBRASis the majority shareholder of 28 telecommunications enterprises and of EMPRESABRASILEIRA DE TELECOMUNICACOES(EMBRATELI. USINASIDERURGICA DA Iron and Steel Private sale. Assets: CR$ 230.5b - Controlled by SIDERBRAS. BAHIA(USIBA) (19B41 ACDSFINOS PIRATINI S.A. Iron and Steel Private sale. Assets: CR1 179.5b - Controlled by SIDERBRAS. ACOSESPECIAIS ITABIRA Iron and Steel [Private sale]. (19B4) - Controlled by Bancodo Brasil. S.A.(ACESITA) CIA SIDERURGICADOAMAZO- Iron and Steel (Private sale]. - 100Iowned by the Federal Union. NASS.A. (SIDERAMA) PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

FABRICADE ESTRUTURAS Metallic [Private sale]. Assets: CRS30.9b - 1OOXowned by COMPANHIASIDERUR61CA NACIONAL (CSN). METALICAS(FEN) Construction (1984) FoRGASACESITA S.A.(FASA) Steel [Private sale]. - Controlled by a CESITA(1OOXI. COMPUTADORESE (Private sale]. - Controlled by BancoNacional de DesenvollmentoEconomico SISTEMASBRASILEIRDS e Social (8NDES),CEF. (COBRA) ACESITAENERGETICA S.A. (Private sale], - Controlled by ACESITA. USINASMECANICA S.A. Private sale. - Controlled by BNDES. (USIMEC} CIADE NAVEGACAO DO SAO Transport [Private sale]. - 100Iowned by the Federal Union. FRANCISCO[FRANAVE) SERVICODE NAVE6ACAO DA Transport [Private sale]. - IOOXowned by the Federal Union. BACIADO PRATA (SNBP) PETROOUIMICAUNIAO S.A. Petrochemicals Private sale. - Controlled by Petroquisa. MAFERSAS.A. Railroad EquipsentPrivate saleJPublic offering. Assets: CRS200b - Controlled by BNDES. Manufacturing (1904) IND. CARBONIFFRA Petrochemicals Private sale. Assets: CRS29.2B - Controlled by PETROFERTIL.Only one responsive bid has been CATARINENSE(ICC) (1982) received. Direct negotiations have beenauthorized. MINERACADNIQUEL STR. - Controlled by ACESITA. MARIALTDA. CIADE CELULOSE DABAHIA Pulp and Paper Private sale. - BNDESand BNDESPARto capitalize credits to improve CCB'scapital (CCB) structure. Controlled by BNOESPAR. CIASIDERUR61CA DO Steel Private sale. - Siqnificant block of shares are to be sold with various accounting NORDESTE(COSINOR) adjustmentsand financial restructuring. DATAMECS.A. Isistemas e ComputerServices Sale of assets. Assets: CRSbl.5b - 9BXowned by CADXAECNONMICA FEDERAL. Sale on the basis of bidding processamentosdados) (1984) intended but employeelawsuit preventedsale and SOEwas dissolved. MINERACAOCARBASE LTDA. Mining/Copper - Controlled by Caraiba.

MINERACAOCARBRASA LTDA. Mining - Controlled by CARAIBA- Notice of prequalification published. MINERACAOCARBRE LTDA. Mining - Controlled by CARAIBA- Notice of prequalification published. MINERACAOCARZINCO LTDA. Mining - Controlled by CARRIB- Notice of prequalification published. CIAFERRO E ACOVITORIA Metallurgy Private sale. Assets: CRS27.7B - Controlled by SIDERBRAS.A notice of prequalification of interested (COFAVI) (1982) parties was published in June 19BB. CIASIDERURGICA DE M061 Iron and Steel Frageentation/Private sale. Assets: CRS97b - Reorganizationinto componentparts. Sharesof core companywill be OAS CRUZES(COSIM) (1904) sold. Controlled by SIDERBRAS. - No bid has been received under private sale; hencedecision to sell assets seperately except for one (tobe transferred to SIDERBRASI. CIAUSINAS NACIONAIS SugarRefinery Sale of assets. Assets: CR$B.IB - CUNdivestment Processwas initiated as a sale of shares but it was (CUN) (1982) decided that assets should be sold individually. Controlled by IAR. CIABRASILERA DE PROJETOS Engineering Private sale. Assets: CRS1.3b - Controlled by SIDERBRAS.Privatization consists partly of limiting INDUSTRIALS(COBRAPI) (1984) scopeof COBRAPIactivities in the domesticmarket. CARRIBRMETAlS S.A. Mining Fragmentation/Privatesale/ - Controlled by BNDESPAR.Restructuring/split of the group into core (industria e cosercio) Sale of assets. activities and reincorporation of subsidiaries. Residual mining rights are to be sold. CIABRASILEIRA DO CDBRE Mining Private sale. - Controlled by BNDESDAR. CIMETALSIDERUR61CA S.a. Iron and Steel Private sale. - Somerestructuring measuresare to be initiated by controlling parties BNDES,bDMG, and BNBprior to privatization including capitalization of debt. 51X to be sold with assets being sold beforehand. IND.AERONAUTICA NEIVA Aeronautics Private sale. - EMBRAER(100I owner) is to offer at least 51Xcontrol. CARBONIFERAPROSPERA Mining Sale of assets. - Controlled by CSN. Liquidation with transfer of certain activitIes is underway. CIABRASILERA DE ZINCO - Controlled by CBC. MINERACADCARMEC LTDR. - Controlled by CBC. CENTRAlSDE ABASTECIMENTO Private sale. - Sale of shares to state or municipal governments. If sale is not C.A. DEALA60AS S.A. successful, plan us to merge10 SDEsinto one under COBAL. - Controlled by COBAL. PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS _- - CA.- DO A_--AONS_ood S.A. _ _f Pr_vate_Esale. _w-ed _y Part_ 18 CBA_L.__ C.A. DO AMAZONSS.A. Food Private sale. - Part of 18 SOEsowned by COBAL. C.A. DECARPINAS S.A. Food Private sale. - Part of 18 SOEsowned by COBAL. C.A. DOCEARA S.A. Food Private sale. - Part of 18 SOEsowned by COBAL. C.A. DOESPIRITO SANTO Food Private sale. - Part af 18 SOEsowned by COBAL. C.A.DE MANAS S.A. Food Privatesale. - Part of 18 SOEsowned by COBAL. C.A. DONARANTRAO S.a. Food Privatesale. - Part of 18 SOEsowned by COBAL. C.A. DENATO 6ROSSO SUL Food Private sale. - Part of IB SOEsowned by COBAL. C.A. DOPARANA S.A. Food Private sale. - Part of 19 SOEsowned by COBAL. C.A. DAPARAIBA S.A. Food Privatesale. - Part of 18 SOEsowned by COBAL. C.A. DEPERNAMBUCO S.A. Food Privatesale. - Part of IB SOEsowned by COBAL. C.A. DOPIAUI S.A. Food Privatesale. - Part of 18SOEs owned by COBAL. C.A. DOPRRA S.A. Food Privatesale. - Part of 18 SOEsowned by COBAL. C.A. DORIO RDEJANIER Food Privatesale. - Part ofIB SOEsowned by COBAL. C.A. DORID 6RANDE NORTE Food Privatesale. - Part of 18 SOEsowned by COBAL. C.Ai.DO RIO GRANDESUL Food Private sale. - Part of IB SOEsowned by COBAL. C.A.DE STA. CATARINA Food Privatesale. - Part 01of SOEsowned by COBAL. C.A.DE SERGIPE S.A. Food Privatesale. - Part of 18 SOEsowned by COBAL. ESTRADAFERRO CORCOVADO/ Hotel andCograil Lease. Assets:CR$ 2.6B - Biddingfor sale wasunsuccessful; the two assetswill be leased HOTELPAINEIRA Train (19821 separately.

COMPLETED:FEDERAL DESE6UROS S.A. Insurance Private sale. - Initial biddingwas unresponsive, process was reopened and prequalification has beencomoleted. Sale is nowapproved. Controlled by FederalUnion (lAPS). OLEOSDE PALMA S.A. Agri-business Private sale. Assets:CRS 1.7B - Controlledby CSN. (19821 LIVRARIAE EDITORA BookPublisher Publicoffering. - Pregualificationhas beenapproved; negotiations have been authorized C° JOSEOLIMPIO andhighest bid has beentaken as a minimumprice for auctionthrough (OLIMPIDI the stock exchange. CIAFIACOA E TECELA6EM Textile Saleof assets. Assets:CRS 580. - Assetswere acquired by BNBESin satisfaction of debt; direct negotia- LUTFALLA (1982) tions havebeen authorized with three pre-qualifiedbidders. CIAFAB. TECIDOS Textiles Private sale. Assets:CRS 5.2B - Acquiringparty wasrequired to cossit itself to provideemployment DONAISABEL (1982) to laid off workersin other parts of its groupat the samesalary. HOTELDA PRAIA S.A. Hotel Saleof Assets. - Companywas liquidated.

CIAGUATAPARA DECELULOSE Pulp and Paper Private sale. - Soldthrough an auction. E PAPEL(CELPAD) ELETROSIDERURGICABRASIL- Publicoffering. - Transferof control throughsale of shareholdingsand surrendering of ElRAS.A. (SIDRA) subscriptionrights. Controlledby BNDESPARI60). - 51Xhas been divested with BNDESgiving financial supportto conclude the project. CIANACIONAL DETECIDOS Textile Private sale. Workforce:3,500 - Controlledby BNDES.It took BNDESseveral yearsto rehabilitate the NDVAAMERICA S.A. companyand make it profitable. It hasbeen sold to a private group of textile manufacturers. CRVD(Coapanhia Vale do Mining Public offering. Assets: $ 4.9B - Issue to the public of debenturesconvertible into ordinary shares. Rio Doce) (1984) - Original governmentownership was 80X. Conversion exceeded expected results, resultingmomentarily to private control until the 6overnment regainedstatutory control of 51X. PETROBRAS Petroleum Public offering. Proceeds:$ 400' - 6overnmenthas sold sharesto small investors. (1) (19851 - Governmentwill still saintain 51Xof corporatestock. PETROBRAShasgood profit recordand some of its shareswere already traded in the stock market. ARACRUZCELULOSE Pulp producer Private sale. Proceeds:S 100l - Controlled by BNDES1231X. Shareholdingssold in March1905. Sold through auction to a private bank. (1985) - Majorshareholders of this highly profitable, export oriented coapany are BNDES,state developmentbank (40.25X) and SOUZA CRUZ, Brazilian subsidiaryof BATINDUSTRIES, UK(25.5%) and other shareholders. PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

- ONDES'controlling interest in ARACRUZwas offered for sale. CIAGUIMICA RECONCAVO Private sale. Assets: CRS6.08 - Controlled by PETROQUISA,it was transferred to the private sector (CUR) (19821 on November,1981 after prequalification and bidding process. New ownerswere selected. Privatization has been initiated even before the founding of the Special Comeissionon Privatization (SCPI. (2) RIOCELL Private sale. Assets: CRS7.4B - Four fires of RIOCELLhave been transferred to the private sector in (1982) March, 1982. RIOCELLis controlled by BANCODO BRAZIL. (2) - Threemajor national groups formeda consortia lKIV PARTICIPACDES SIA) to purchaseRIOCELL: KLABIN (52X), IOCHPE(421), and VOTORANTIM (6X). KLABINand IOCHPEhad direct experience in the sector. l2) - Subject of a financial and operational restructuring by Bancodo Brazil and had begunto showprofits before being privatized. Privatization initiated even before the founding of the SCP. (2) CIA AMERICAFABRIL Textiles Sale of assets. Assets: CRS7.8E - Controlled by BANCOCENTRAL and transferred to the private sector in (1982) November,1981. Prequalification and bidding process producednew owners. (2) - Companywas not purchased,only the assets were. It has shown weakresukts in years. Privatization has beeninitiated even before the founding of the SCP12). Companywas liquidated. METODOORGANIZACAO Consulting Firm Private sale. Assets: ERS14. - Controlled by DATANEC,it was transferred to the private sector in PLANEJAMENTOE (1980) June 1982. It was purchasedby a former sanaging partner who ADM.ENPRESAS initially had 51 of the capital. (2) CIA PERNAMBUCANA Synthetic Rubber Private sale. Assets: CRSIB.3B - Controlled by PETROOUISA,it wastransferred to the private sector in DEBORRACHA SINTETICA (1982) March1983. Privatozation was achievedthrough a joint venture of (COPERBOI equal 1/3 participation of NORQUISA(controlled by PETROQUISA), METANORand CONEPAR,a holding cospanyrelated to the BANCOAMERICOI GROUP.(2) CIAIND. BRASILEIRAS Paper Private sale. Assets: CRR 84. - It was transferred to the private sector in March1983. It was PAPEL(INBRAPELI (1980) purchasedby the holding companyof the BAMERINDUSfinancial conglomerateto which INBRAPELwould becomeprincipal supolier in a measureof vertical integration. (2) NITRIFLEX Private sale. Assets: CRS8.08 - Controlled by PETROIUISA,it was transferred to the private sector in (1982) April, 1983. NITRIFLEXis a joint venture betweenPETROOUISA and GOODYEAR(USA). Throughsale of 30% of its capital to Brazilian firm ITAP, national control wasmaintained with PETROUGISA'sshare reduced to 40%of the capital and GOODYEARcontinuing with its 30X stake. l2) BANCODO BRAZIL Bank Public offering. - Minority equity participations transferred. GRANDEHOTEL BLUMENAU Service Private sale. - Controlled by the Federal Union. EMPRESAEN6ENHARIA E Public Works Frageentation. Assets: CRS8.6b - Controlled by DNER.Decision to sell plants, equiDmentand material CONST.OBRAS ESPECIAIS (1984) made. DNER,majority stockholder, to absorb employeesand core (ECEX) activitiesof ECEX. MAGUINASPIRATININ6A DO Machinery Private sale. - Controlled by BNDESPAR.BNDESPAR was authorized to sell less than NORDESTES.A. total shares outstanding, but at least sold control.but at least sold control. MAQUINASPIRATININGA S.A. Private sale. - Wascontrolled by BNDESPAR. ENGEMATIClENG. HIDRA- Aeronautics Sale of assets. - ENGEMATICwas liquidated in view of operational and financial condi- ULICAE INSTRUMENTACAD) tion. Was controlled by EMBRAER. REFINARIARAMIRO SugarRefinery Sale of assets. Assets: CRS2Ba - Controlled by IAACUN. Companywas liquidated. 11982) CIA INCENTIVADORADE Agri-business Sale of assets. Assets: CRR 4.4B - WasControlled by BNDES.Company was liquidated. ACTIVIDADESABRICOLAS 11982) - SOEwas not active and only ownedassets. FERRITASMA6NETICAS S.A. Mining Private sale. Assets: ERR347m - Wascontrolled by CVRDl60X). (FERMA6) (1982) CIABRASILEIRA BE Dredging Fragmentation. Assets: CRR47.4b - Minornon-core activities to be divested while assets not neededfor DRAGA6ENS (1984) dredging to be sold. PORTOBRAS(majority owner) absorbedeeployees. PRIVATIZATIONTECHNIOUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

(1)Privatization Worldwide- Adas Smith Institute (1986). 12) Destatization Program of the Brazilian Governsent(*. Ness).

CAMEROON

PLANNED: SNI (Societe Nationale Holding Company Private sale. - SNI is to sell its shareholding in 62 companies to local investors d'Investissement) within five years. (1) COMPLETED:SIRICOM Bricks Sale of assets/Liquidation. SOCAME Fertilizer Sale of assets/Liquidation, HAVECOM Rubher Managementcontract. SUCUCAn Sugar Managementcontract, n.a. Shipping Line Managementcontract. (I)

(I) Public Enterprise Deeandfor Managementin Sub-SaharanAfrica - IFC (6I86).

CANADA

- Privatizations were carried out by the Federal Government, as well as the Provincial Governmentsof which Ouebec,British Columbiaand Ontario havethe largest records. See detailed CaseStudy in Volumell. PLANNED: SIDBEC Steel and Iron ASBESTOSCORPORATION Asbestos ELDORADONUCLEAR Mining/Uranium Public offering. Assets: Can. $ lOb. - 100 I Subsidiary of CDIC. (1) - Mergerwith Saskatchewanowned Saskatchewan was Mining Developeent Corporation (SMDC)to be followed by nublic offering of shares. ° - 1001privatization of mergedcompany over a period of 7 years. CANADIANNATIONAL Transport/Rail Fragmentation Assets: Can. S 7.8b. - Future divestment of non-rail operations under review. RAILWAYCOMPANY (CNR)

PETROCANADA Oil Company Public offering. Assets: Can. Sl.5b. - Underreview.

UNDERWAY:RADIO CHEMICAL COMPANY Radio Private sale. Assets: Can. )11e. - Underserious review for privatization. Phareaceuticals - Un-incorporateddivisions of Atomic Energyof Canada,Ltd. MEDICALPRODUCTS DIVISION Nedical equipment Private sale. Assets: Can. $23s. - Managementand employeesot Nedical Products Division exploring feasibility of employeebuy-out. AIRCANADA Airline Public offering. Assets: Can. S2.9b. - A public issue of 30X of companyis expectedat end 19B7.G6vernement will retain an interest in the airline. - On April 12, 1988 the Fed. Govt.announced the introduction of legislation to authorize public particpation in Air Canada. - Theoffering will be in the formof a treasury issue that will not reducethe government'sshareholding below 551. - The legislation will allow for a cosplete divestiture by the govt. whenmarkets permit. BRITISHCOLUMBIA HYDRO Energy Private sale. BRITISHCOLUMBIA NewPrivate sale. STEAMSHIPCOMPANY TERRANOVA TEL. Telephone Private sale (bidding) - Serves Dart of NewFoundland. - Subsidiary of CNR NORTHWESTTEL. Telephone Private sale (bidding) - Serves part of Northwest territories, - Subsidiary of CNR.

COMPLETED:FEDERAL PRIVATIZATIONS: - Twogroups of completedtransactions are presented: federal and ------provincial privatizations. NORTHERNTRANSPORTATION Transport Private sale. Proceeds:N 27mt - 1002state owned,was sold to a corporation ownedby peoplein the PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

COMPANYLTD. $26.7a debt area in July1985. (61 lE HAVILLANDAIRCRAFT Computer Turbo- Private sale. Proceeds:S 90a cash- DEHAVILLAND, a 100%COIC subsidiary, was sold to BOEINGin 1?86. (6) COMPANYOF CANADA LTD prop/Aerospace + S 65e notes - Privatization effort was described as a financial successbut a political blunder. CANADIANARSENALS ArmsManufacturer Private sale. Proceeds:$ 92e - 1007.state owned,was sold to SNCGROUP, a Canadiancompany, in Nay 1986. (31 (6) CANADADEVELOPMENT Industrial Holding Public offering. Proceeds:N 376h - Government'svoting rights in COCwas reduced from 47X to 14X. Shares CORPORATION(CDC) Company sold in August, 19B5. (3) - Governmentsold its shares in CDCon installment bases. First eentat $5.75/share paid in September1985, last installment paid in September1986. Transaction was not a success. (3) - Cospletely privatized as of October 1987. (6) NANISIVIKMINES Mining Private sale. Proceeds:N 6.Om - Sold in October 1986 (4) to MINERALRESOURCES INTERNATIONAL, LTD who already owned82% of shares. CNROUTE Transport Private sale. Proceeds:N 29m - IOOXowned by CANADIANNATIONAL RAILWAYS, maS sold in December1986 to ROUTECANADA HOLDINGS INC. Modernization is underway,(6) CNRHOTEL SUBSIDIARY Private sale (bidding) PECHERIESCANADA INC. Fishing Company Private sale. Proceeds:$ 5.0. - 100%state owned, it wassold in April 1986 (4)to PURDELCOOPERATIVE ALIMENTAIRE. CANADAIRLTD. Aerospace Private sale. Proceeds:S 120mcash - Purchaseporposals camefrom RONBARDIER,LTD., CANADIANAEROSPACE $ 173. future payment TECHNOLOGIES,FLEET CONSORTIUM, IMP GROUPand MAGNAINTERNATIONAL. - Sold to BOMBARDIERin October 1986for a mixture of cashb royalties and shares. BOMBARDIERwill pay $ 120e in cash. 6overnmentwill retain ownershipof Challenger executive jet technology and mill receive royalties on it for 21 years (IS100). It also negotiated option of taking S 20a in cash within twoyears onsteadof royalty paymentsover 21 years. - Governmentvill receive twoclasses of shares in a holding company through which BOMBARDIERmill own CANADAIRClass A shares mith a face value ef S 100land Class B mitthface value of N 50e. - BOMBARDIERagreed to pay Governmenta royalty of 1% if it is awardeda $ 17b 20-year maintenancecontract for Canada'sCF-lB fighter aircraft. TELEGLOBECANADA Communications Private sale. Proceeds:$ 488a cash $ 106bspecial div-- 100-state ownedand mostprofitable of the CrDmnCorporations, it dendand S 17.notes was sold in April 1987 to MEMOTECDATA INC. - Created by statute and has a de facto monopolyas Canada'ssole carrier of overseascommunication. (1) - Business issues (ability to competewithout monopolyposition) surrounding TELEGLOBE'sprivatization are minor comparedmith policy issues (structure of the communicationsindustry, ownership regulation of TELEGLOBE,etc.) (1) - Governmentintroduced regulatory protection for consumersbecause the fire was the only companyproviding overseastelecom services. (4) FISHERYPRODUCTS INTER- Fishing Company Public offering. Proceeds:N 177m - Ownership:63% (federal), 26% (Newfoundland), 11% (BANKOF NOVA NATIONALLTD. SCOTIA) - Soldin April 1987 to the public and employees(3.5%) NORTHERNCANADA POWER PowerCoapany Managementcontract/Private Proceeds:) 76c - lOl state owned.A private company,the YUKONELECTRICAL COMPANY, COMMISSION(YOKONI sale. (6) will managethe utility on behalf of the YUKONPOWER CORPORATION (a subsidiary of the YukonGovernment) iho purchasedthe assets of NORTHERNCANADA POWER COMMISSION in March1987. PROVINCIALPRIVATIZATIONS: (not all inclusive)

9 QUEBEC: - Total value of privatization transactions in Guebecus C$ 97m represented by proceeds or shares offered in the exchange,debt assuaedby purchasersand balance due on account of sale price. (7) PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY HETHOD/PROCEDURE SIZE INDICATOR COMHENTS ------…---- _-- RAFFINERIEDE SUCRE DU Sugar Private sale. - Sold to LANTICSUGAR LTD. in September 1986. LANTICpledged invest- QUEBEC(RSO) sent of ) 25e over five years in RSO.(6) PROV160(SOUUIA) Private sale. Proceeds: CanS48.4s - Sold to SOQUITA(SOCIETE OUEBECOISE D INITIATIVES AGROLIMENTAIRES). Sale resulted Ln a capital gain of S 17.5s for QuebecGovernaent. (6) SOCIETEQUEBECOISE 0 Mining Sale of assets. (7) Proceeds:Can$ 157.5. - Partial privatization with state holding company,SOOUEN, retaining EXPLORATIONHINIERE 30-400stake. New companyformed is CAHBIOR,INC. (SOQUENI - Included an international equity offering. Consideredas one of the largest and mostsuccessful privatizationAS undertakenin Canada.(5) - About 15.8mshares of SOQUENwere sold to the public in August 1986. MADELIPECHE Fishery Private sale/Public offering. Proceeds:CanS 3.1a - Holding companyconsisted of four sain entities and subsidiaries. It wasdecided to sell these entities individually. A groun of 11 businessmenfrom ILES-DE-LAMIADELEINE and CTIA (COOPERATIVEDETRANS- PORTMARITIME ET AERIEN)bought shares except one subsidiary for $ 2.6n. Another group bought the other plant for$ 0.5m. (6) SOCIETEGENERALE DE Industrial Hold- Private sale. Proceeds:CanS 1.32b - SGF,is an industrial holding companyreoriented to becomea develop- FIKANCEMENT(SGF) ing Company sent companywith objectives of prosoting and implesenting industrial (DONOHUE) developsent objectives together with the private sector. SGF's interest in DONOHUEINC. and DOMTARINC. was sold off. Althouqh proceedsfrom DONOHUEsale were realized, shares in DOMTARare yet to be sold. (6) PECHESNORDIOUES Fishery Private sale. Proceeds:Can$ 6.5w - Jointly ownedby SOQUIA(940) and FRUITDE HER DE L ESTDU OUEBEC (60).6overnment's accumulated debt since 1979 is N 12.2m. Acting through SOOUIA,Governeent sold off SOOUIA'sentire interest to FRUITDE HER. (61 QUEDECAIR Airline Private sale. Proceeds:CanS lOn

NORDAIR,INC. Airline Private sale. Proceeds:Canf 3.5s - Sold by Quebecto CANADIANPACIFIC AIRLINES in a transaction related t to privatization of QUEOECAIR. - NORDAIRis 650 ownedby CANADIANPACIFIC & 350by the Xuebecgovern- msent. LOUVEM(SOQUENI) Private sale. M7) SELEINE Private sale. (71 SOOUIP-ALBERTA Sale of assets. (7I J.E. LANDRY(SOQUIA) Private sale. (7) SOCIETEDES PECHES Fishery Sale of assets. 171 DENENPORT CRUSTACESDES ILES Fishery Private sale/Public offering. 17) GRANDE-ENTREE Fishery Private sale/Public offering. 171 DISTEX(S.N.A.l Private sale. (7) LUPEL(S.N.A.I Private sale. (71 FILAO-SNA Private sale. (7) INDUSTRIES3-R INC. ShareRepurchase. (7) PAPIERSCASCADES (REXFOR) Private sale. (7) PANOFOR(REXFOR) Sale of assets. (71 SCIERIEDES OUTARDES Private sale. (71 (REXFOR) BRITISHCOLUSRIA: PACIFICCOACH LINES Transport HI-TECHSYSTEMS LTD. Techonology BEAUTIFULBC MAGAZINE Communications ONTARIO: URBANTRANSPORT DEVELOP- Transport Private sale. Proceeds:S lOs cash - Sold to LAVALINunder terms which include cash paymentand income MENTCORPORATION + $ 20mdebentures debenturesbearing interest equal to 25Xof its pre-tax profits over 10 years and becooespayable then. If purchaserdoes not seet its PRIVATIZATIONTECHNIOUES COUNTRY ENTERPRISE ACTIVITY METHODIPROCEDURE SIZE INDICATOR COMMENTS

commitment,it oust repay debenturesearlier in annual S 2.Qs install- ments. (6i) BRITISHCOLUMBIA RESOURCES 6ive-aways - EachCanadian citizen of applicant living in British Columbiafor one INVESTMENTCORPORATION year could receive five free shares in B Cric, worth about S50 in (BRIC) total at the time. At the sametime, British Columbiansnould be able to buy up to 5,000shares. (2i SASKATCHEWAN: SASKATCHEWANOIL AND SAS Oiland Gas Public offering. Proceeds.S 47.9. - Sharesof SASKOILwas sold un July 19B7at $ 7.625/share. Ownership CORPORATIONISASKOIL) of SaskatchewanGovernment was reducedfrom 91%to bQZ. (6) ALBERTA; PACIFICWESTERN AIRLINES Airline

(11The Why, Whoand Howof Privatizing CanadianCrown Corporations (E. Clark). 12i Privatization: Theoryand Practice (T.M. Ohashiand T.P. Roth) (31Privatization from a CanadianPerspective (R. Donaldsonand D. Ross). (41Privatization in Canada(Office of Privatization and Regulatory Affairs). (9)Shearson Lehman Brothers Fact Sheet. (1987) (6) CanadaCase Study, Volume11. (7) Souvernementdu Duebec, Ministere des Finances, Direction des Societe d'Etat.

CENTRALAFRICAN REPUBLIC

COMPLETED:SICPAD (Societe Indus- Food Sale of assets. Price: FCFAlI.b - Sold in 1907 to HUSACA,a local company. trielle Centrafricaine (1987) de Produits Alisen- taires et Derives)

CHILE

- Chile has characterized its privatisation technioues as: Capitalisso Popular (as in cublic sale of 2 large banks& 2 pension funds), Capitalisso Laboral (workers buy share of their comPaniesvia use of retirement funds), Capitalisco Institucional (indirect transfer of ownership to workers), Capitalisno Tradicional (sale thru stuck exchangeused in selling steel & fertilizer companies)& auction (tender offers). - Chile is one of the countries to haveused debt-equity swapsin its pruvati:ation process. - Substantial action has occured recently and could not be reflected by time of printing ot this table. - See further Volume11. PLANNED:

EL HUESO goldmine Lease. CORFOSubsidiaries (CHILEAN DEVELOPMENTCORPORATION) EMELAT Electricity Private sale. Equity: S 5.1e - lOOXstate-owned, full divestiture is foreseen. (1986) PULLINGUE Electricity Private sale. Equity: W 20.2w - 100Istate-owned, full divestiture is foreseen. (1906) COFOMAT Forestry Private sale. Eouity: S 4.O0 - IOQZstate-owned, fulldivestiture is foreseen. (196B) UNDERWAY:CHILEC Power Public offering. CTI and Subsidiaries Appliances Private sale. Equity: (S12.0w) VINASAN PEDRO Vineyard Private sale. Equity: ($0.3.) CORFOSubsidiaries (CHILEAN Holding Company PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZEINDICATOR COHMENTS

DEVELOPMENTCORPORATION) CTC Telephone Private sale. Equity: S 242n - Government presently owns921 of shares but wants to reduce to 49X. (1986) ENACAR Coal Private sale, Equity: S 73.3a - 100lstate-owned. State's stake reduction to 51X. (1986) COMPLETED:[AF? UNION) PensionFund Private sale. 12) [ISAPRECRUZ BLANCA] Health Insurance Private sale. (2) [ISAPRELUIS PASTEUR] Health Insurance Private sale. (2) [ISAPRECOLMENA] Health Insurance Private sale. (2) [BANCODE CGNCEPCION]Comaercial Bank Private sale. (21 [BANCOINTERNACIONALI Cowsercial Bank Private sale. (2) (BANCOOSORNO Y LA UNION]Commercial Bank Private sale. 12) [BHIFI Bank Private sale. (2) Equity: $20.Q0 [AETNAINSURANCE COMPANY] Insurance CompanyPrivate sale. - Originally 50X ownedby AETNAGROUP (USA) who subsequentlybought the remaining 50X fromBanco de Chile while it was intervened. [CONSORCIONACIONAL DE Insurance CompanyPrivate sale. (2) Equity: $7.8B SE6UROS) (INFORSA& SUDAKERICA]Forestry/Paper Private sale. (2) Equity: $15.4n (INBUS] Agro-business Private sale. 12) Equity: lS25.1m) [CCU] Beverages Private sale. (2) Equity: ($133.) [COPEC] 6as/Forestry Private sale. (2) Equity: $152e [LADECO] Airline Private sale. (2) [PANAL] Textile Private sale. (2) [POLPAICO] Cement Private sale. (2) Equity: $27.8 [HUCKE-MfCKAY] Food Private sale. (2) Equity: ($27.9.) AFPSANTA MARIA PensionFund Public offering. (1) Equity: $9.7a - AETNAhad 49*+,bought additional 1, and the remainderwas sold to the public. AFPPROVIDA PensionFund Public offering. I1)/Debt- Equity: $13.9. - BANKERSTRUST bought 40X piece of this largest pension fund equity swaps, managerin Chile via conversion of its $60Qdebt to equity (swaps). Balancesold to the public. BANCODE SANTIARO CoemercialBank Public offering. Equity: $197m - SeeCase Study Volume11. BANCODE CHILE CoemaercialBank Public offering. Equity: $228. - SeeCase Study Volute 11. [CONSORCIONACIONAL DE Insurance CoepanyPrivate sale. - BANKERSTRUST bought 97X stake in this biggest life insurance company SE6UROSDE VIDA] in Chile via debt-equity swaps. CORFOSubsidiaries (CHILEAN Holding Company DEVELOPMENTCORPORATION) TELEXCHILE Telex Private sale. Equity: CP 1.4b - Nasfully divested to local private investors through a bidding (1986) process. (2) EHEC Electricity Private sale. Equity: CP 609. - Companywas sold to domestic investors through negotiation, (2) (1986) ECOH CosputerServices Employeebuy-out. Equity: CP 300Q - 1002of companywas taken up by employees. (1986) PILMAIOUEN Electricity Private sale. Equity: CP4.1b - 1002state-owned, fully divested. (1986) - BANKERSTRUST (of the US) formed a joint venture with Chilean Dartners and bought PILMAIQUENhydroelectric complex. ENAEX Explosives Private sale. Equity: CP l.6b - 1002divested to foreign and domesticinvestors. (2) (1986) - AUSTINPOWER of the USbought 2/3 of the shares in 1986. ILANCHILE] Airline Private sale. Equity: $ 38.la - IOOXstate-owned, LAN restructured its capital and constitution (1986) allowiing it to sell offa third of its equity to private investors. ENTEL TelecoamunicationsPublic offering. Equity: CP 4.8b - Governmentreduced its stake from 1U0Xto 67X. (2) (1986) - Buyers are: MAGISTER,PROVIDA, CUPRUM, PROTECCION, SUfMA & UNION. - Offering was viaa portfolio sale to pension funds. CHILMETRO Electricity Public offering. Equity: CP 13.5b - Fully divested to local investors and workers. (2) (198t)

CHILNE6ER Electricity Public offering. Equity: CP6.lb - Governmentpresently owns342 of company.12) PRIVATIIATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

(1986) CHILGUINTA Electricity Public offering. Equity: CP3.4b - Fully divested through 'popular capitalism'. (2i (1986) CAP Steel Public offering. Equity: CP7.9b - Fully divested to workers and local/foreign investors. (2) (1986) SOIUlMICH Nitrate Public offering. Equity: CP17.1b - Fully divested to workers and local/foreign investors. (2) (19B6) IANSA Sugar Public offering. Equity: CPl.Ob - State reducedits stake fromlOXT to 51X. (2) (1986) LABORATORIOCHILE Pharmaceuticals Public offering. Equity: CP750 - State reducedits stake froe lOOTto 51X. (2) (LARCHILE) (1986) ENDESA Electricity Private sale. Equity: S 769m - 30X of ENDESAshares havebeen sold. Governoentstake is downto 70X (1986) as of March, 1988. EMEL Employeebuy-out.

(1)Divestiture of SOEsin LDCs(op. cit.) (2) Chile CaseStudy, VolumeII.

CHINA

- Fi'stfinancial market openedin Deijing in March, 1987alsed at sell- ingstock of SOEsto the public. China's iarger SOEwill be allowed to offer shares equal to their assets. So long as state holds 51l. of stock issued, the firm will be controlled by the Government.

PLANNED: PEKIN6DEPARTMENT STORE Retail Trading Public offering. Workforce: 3,000+ - First SDE to be offered in the exchangeand the largest commercial establishment in the city. Shareswill be available for our-hase @ in open market by any group or individual. MINSHENGSHIPPING CO. Transport/ShinpingPublic offering. - Companvwas revived under son and old eaployeesof former private owners. Cowpanywill nowissue shares, naydividends, and compete with State shipping line. n.a. Holding Company Private sale. - Sale of equity betweenIFC and Governmentinvolved holding companyand PEUGEOTfor a project costing $ 79w. Part of agreementis for 60vern- mentto reduce its stake in the project by selling lOX of the equity to the public. CHINASTEEL CORPORATION Steel CHINAPETROCHEMICAL Petrochemicals DEVELOPMENTCORP. n.a, GasStations - Allgas stations are part of the state-run CHINESEPETROLEUM CORPORA- TION(CPCi. The 6overnaentwill first allow the private sector to build new gas stations in addition to the current ones ownedby CPC. After soae period of time, the CPC-ownedgas stations will also be sold to the private sector.

COLOMBIA

COIPLETED:BANCO DE COLUMBIA Bank Sale of assets. - Industrial assets of the Bank were sold,

COSTARICA

- Mostof the Government'sprivatization programis being already implemented. - USAIDis implementingaid progras to address divestiture. Counter- part funds generatedby the 51401.Economic Support Fund are being usedto set up private trust to buy 18 SOEsowned by CODESA(COSTA PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

RICADEVELOPHENT CORP.) on the basis oi price negotiated by Controller General. Trust will then sell sharesof these cospaniesby public bidding. Prior to sale CODESAwill assumeoutstanding debt of SOEs using credit from the Central Bank. This is doneto smoothen divestiture processby reducing potential forlegal claims against operating coepanyassets. Proceedswill be used to compensate employeeslaid off by divestiture. Proceedswill also go to the Central Bankto reduce CODESA'sdebts. (I)

PLANNED: CONSEJONACIONAL DE Agro-business Private sale/Manaqement - With assistance froa USAID,three functions have been identified for PRODUCCION contract. privatization: operation of rice mill, importation of grain, operation of CNPstores. Rice mills can be sold to private sector, managementof grain imports can be transferred to private sector and operation of stores can either be privatized or liouidated to allow free operation of market forces. (31) UNDERWAY:ALUNASA Aluminum Private sale. - Sold by CODESAat end of 1985 to FINTRA,a private sector trust set up to facilitate divestiture activities. ALUNASAwill be sold as a going concern. 13) ALCORSA Cotton Sale of assets/Liquidation. - 6ovt. has agreed to either transfer or liquidate assets by no later than end 9/87.(3) CEMPASA Cement Private sale/Management - Costa Rican legislature has beenunwilling to permit sale of contract. more than 40P of shares. However,orivate purchasers would be awardedmanagement contracts in order to insure private management of business. (3) FERTICA Fertilizer Private sale/Management - Costa Rican legislature has been unwilling to permit sale of contract. sore than 40X of shares. However,private purchasers would be awardedeanagement contracts in order to insure private managesent of business. (3) CATSA Sugar Private sale. - Costa Rican lawstipulates divestiture through public bid only to eligible cooperatives. Govt.has agreed to sale by end of 1987and it appearslikely that a private cooperative formed by sugar growers who are membersof LISADE LA CANA,will be organized in order to purchaseCATSA shares at public bid. (3) COMPLETED:SUBPRODUCTOS DECAFE Coffee Waste Private sale. Processor

(1) Divestiture in DevelopingCountries (E. Berg and M. Shirley, 1987). (2) Divestiture of SOEsin LDCs(op. cit.) (3) USAID/CostaRica Privatisation Plan (18/86).

COTED IgOIRE

- In 1977, there were 113 enterprises with majority or IOPXstate-owned. - In 1978, 16 SOEswere liquidated (SONAFI,investment SOE;ARSO, Developmentof the SouthwestAgency; etc.). - Privatization reportedly considered for a large numberof SOEsin textiles, shipping, oil, transport, agri-business, chemicals, mining, tourism, public services, financial services, and public works. No official listings released. COMPLETED:SIETHO Tourism Fragmentation/Management - Hotels transferred to municipalities, w/ requirement that munici- contract. palities concludemanagement contracts w/ or w/o equity from them. (3) PALMINDUSTRIE OilRefining Managementcontract. - Seneral manageeentis Ivoirian. Legal status: transformed into SEM,a joint venture company.Major problemis valuation oi assets.(3) - Technical assistance contract concludedwith UNIPLANwith privatiza- zation being initiated by the technical partners. (3) SODECI Waterdistribution Lease. - This companylargely privately ownedand quoted on the Abidjan PRIVATIZATIONTECHNIGUES COUNTRY ENTERPRISE ACTIVITY METHODiPROCEDURE SIZE INDICATOR, COMMENTS

stock exchange,leases the water distribution facilities under a 'Contrat d'Affermage'. SODEFOR Forestry Fragmentation/Management - Split land ownership and management.Managesent given to outside contract. parties. SOTROPAL Industrial CompanyPrivate sale. - State had majority participation. (3) CMAC Private sale. - State had majority participation. (3) TRITURAF Agro-business Private sale - Governeenthas 79X ownershipprior to sale. (4) - Substantial participation sold to UNILEVER.(3) (51 5061EXI Holding Cospany Private sale. - Holding w/ diversified interest: cocoa, coffee, trading, autc- mobile distribution, furniture, etc. held by SONACIfor about 60 enterprises. SONACIwas dissolved. (3) - Entire state participation sold to Swissgroup. Decreeis required for State to transfer shares to private parties. (3) - TOYOTAdivision sold to private Ivorian investors. (S) SODEPALM PalmOil Managementcontract. (I1) AWKABA(SAF6MT) 6roup Hotels Lease. (3) LESCAOUTCHOUCS DE RubberCompany ManagementBuy-out PAKIDIE SALCI Agro-business Private sale. - Governsentownership is 24X. (4) Takenover by COGE1IM.(5) SERIC Agro-business Private sale. - Governmentownershio is 55X. (4) Takenover by COGEXIM.15) COCI Aqro-business Private sale. - Governmentownership is 36X. (4)Taken over by LESPLANTEURS DE SASSANDRA.(5) PROCACI Cocoafactory Private sale. API Agriculture Managesentcontract. (5) - Governsentownership is 33X. (4) Managementtemporarily under CACAO BARRY(France) control. (5) SHAC Export Private sale. - 6overnmentownership is 50X. (4) Takenover by private Ivorian investors. (5) s SONACO Carton manufacturePrivate sale. - Governmentownership is 90X. (4) Part of companywas sold to the CHARFA6ROUP. (5) 1 IVOIRECONSEIL Advertising Private sale. - Governeentownership is 62X.(4) Takenover by LINTAS.(5) SITAB Tobacco Public offering. - ThroughAbidjan stock exchange. FOREXI Waterprospecting Managementbuy-out - IVOXstate owned. SODERIZ Agro-business Private sale. PAC Distribution SIDECO Distribution Sale of assets. - Sold to SCOA.(5) ICTAVOYAGES Travel agency Managementbuy-out. - Takenover by the manager.(5) HOTELHARnATTAN Hotel Private sale. - Takenover by private Ivorian investors. (5) SANO Hotel Managesentbuy-out. - Takenover by the manager.(5) SARECO Tourism Managesentbuy-out. - Takenover by the manager.(5) ABI Foundry Private sale. - Takenover by the CHANIC6ROUP. (5) CERAMANTEN Ceramic Private sale. - Takenover by the SICKGROUP. (5) IVOIREOUTILS Tools Private sale. - Takenover by private Ivorian investors. (5) SEDANIVOIRE Industry Lease. - To an Ivorian group. (5) SONA6ECI Public works Sale of assets. - To CHANTIERSMODERNES. (5) SOTROPAL Matches Private sale. - Takenover by private Ivorian investors. (5) BNEC Bank Private sale. - Takenover by private Ivorian investors. (5) SOGEFIHA Housing - Returnedownership to individuals. (5)

(1)Divestiture in DevelopingCountries (op. cit.) (2)Divestiture of SOEsin LOCs(op. cit.) (3) Cute D Ivoire - Notes on Divestiture (C. Vuylsteke). (4) Public Enterprise Demandfor Managesentin Sub-SaharanAfrica - IFC (6/H6). (5)Inforeation from Manuscriptby Professor E. Wilson. PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY SETHOD/PROCEDURE SIZE INDICATOR COMMENTS

DENMARK

COMPLETED:KRYOLITSELSKABET OERESUND Food Manufacturing Public offering. - 6overneentstll holds soee ordinary shares. Flotation was reported as the biggest soney raiser in equity earket.

Source:Privatization Worldwide- AdamSmith Institute (I986).

DOMINICANREPUBLIC

PLANNED: INESPRE FoodDistribution - USAIDrecommendations seek to eliminate INESPRE'smononoly, which is contained in USAID'sprivatization of SOEproject for 1988. (1) CORDE Holding Company - USAIDrecommendations seek to eliminate INESPRE'smonopoly, which is contained in USAID'sprivatization of SOEproject for 1988. (1) UNDERWAY:ALGODOM Cotton Managementcontract. COMPLETED:STATE SUGAR COMPANY Sugar Lease. - UNITEDBRANDS, a foreign multinational leased 100 hectares and converted sugar land to pineapple and oil pale.

(1)USAID Papers on Latin America.

EGYPT

- Several transactions reportedly planned or under way in the hotel sector whichmay result in private sales, leases, and management contracts. COMPLETED:EKG HOTELS - TheseEKG hotels are presently under recently concludedmanageaent contracts. CATARACTHOTEL Managesentcontract. KALABASHA(Aswanl HOIEL Managementcontract.

Source: BusinessMonthly (12/871.

EQUATORIALGUINEA

UNDERWAY:EMPRESA DECOMERCIO Trading Coapany Private sale/Joint venture! - Governmentmill liquidate companyor transform it into a joint enter- Sale of assets/Liquidation. prise with foreign capital. COMPLETED:LINEAS AEREAS DE 6UINEA Airline Private sale. - Creation of limited liability companywith Governmentretaining ECUATORIAL majority holdings while rest was sold to private investors. (1) EMPRESADEENERSIA Energy Private sale. - Creation of limited liability companywith Governmentretaining majority holdings while rest was sold to private investors. I1) AGENCIAMARITIMA NACIONAL Shipping Private sale. - Creation of limited liability companywith Governmentretaining majority holdings while rest was sold to private investors, (1) EMPRESADETRANSPORTES Luxury Transport Private sale. - Creation of limited liability companywith 6overnmentretaining TERRESTRESDELUJO majority holdings while rest was sold to private investors. (1) EMPRESAFORESTAL BE Forestry Private sale. - Creation of limited liability companywith 6overneentretaining GUINEAECUATORIAL majority holdings wihile rest was sold to private investors. (1) FABRICANACIONAL DE Bricks Private sale. - Creation of limited liability companywith Governmentretaining LADRILLOS majority holdings while rest was sold to private investors. (1)

(1) Techniquesde Privatisation des Enterprises Publiques (L.Rapp).

FIJI

PLANNED: POSTAND TELECOMMUNI- Telecomaunication Public offering. - 6overneentis planning to offer shares to the public while retaining CATION majority. FIJI ELECTRICITY PowerDistribution AUTHORITY PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COltHENTS

UNDERWAY:GSY (6overnment-Owned Shipyard/Fleet Private sale/Joint venture. - ADB study recommendedprivatisation of interisland shipping services. Shipyard) 6ovt. formulated policy to promotedevelopment of private sector shipping & reducing govt. s fiscal burden by divesting surplus govt. vessels to private sector & cossercializing 6SY. (1I COIMPLETED:AIR PACIFIC Airline Nanagesentcontract. - GANTASwas awardedthe contract. (2) FIJI BROADCASTINGTV TV Broadcasting Private sale/Joint venture. (3I - Australia's CHANNELNINE was awarded the contract. (2)

(1)ADB. Technical Assistance to Fiji forPrivatisation of 6ovt. ShippingFleet & Comeercialization of 6ovt. Shipyard. (21 Privatization Possibilities Along Pacific IslandCountries (C. Feinstein).

FINLAND

PLANNED: OUTDVUMPU Metals New investment. VEITSILUOTO Paper New investaent, KEIIRA Chemicals Newinvestment. UNDERWAY:VALMET Netals and Frag,entation/Newinvestment, Assets: $ 7$6m - Transaction involved an asset swapand merger. Engineering (1904) - Plergerwith the largest private shipbuilding company,WARTSILA. Merger of the paper machinerydivision wasprice paid to persuade Governmentto allow VALMET'sshipyards to pass into private control. Newcompany will be 70X ownedby WARTSILAwhile VALMETwill have65% of saper machineryof WARTSILA.

FRANCE

- Prior to nay 19D8elections, French governeentobjective was to privatize 66 SOEs(65 under August 1966Law and TF1) in the next five years. In addition to the above66 SOEs,all subsidiaries could have seemdivested by SOEsby ministerial authorization. (5) xo - Governmentaldeclarations to date indicate that the programis interrupted. COMPLETED:SAINT 6DBAIN Glass/Special Public offering. Proceeds:FF 8.2b - Offering started on 11/24186. Successful sale issue on stock Materials exchange(by Decemberwore than 1.5e shareholders, amongwhich Im are are small shareholders). - 2Dmshares wereoffered (more than b0Xof SAINTGODAIN) at FF 310 a share. 72Xof shares were offered to the French public, 102 to employeesand 180to foreign investors. (4) ELF AQUITAINE Energy Public offering. Proceeds:FF 3.2b - Offering by issuanceof preferential shares (Emissionsd Obligations). - Floated from 9128/86-1014/06.10.8m shares were offered at FF 305/ share. Successful share issue, formore than 300,000subscribers have bought less than 10 shares. Sharesreserved foremployees of ELF, its subsidiaries in France and abroad, and former employees who have workedfor at least five years in ELF. Reservedshares were gives 192discount and one year deferred payment. - Governmentretained majority holdings through subsidiary FRAP. Soc:alist Party criticized low-value price shares. - Each share had a nominal value of FF 10. BANQUENATIONALE Dank Public offering. Proceeds:FFr 4.Ob - First issue on non-voting shares in a nationalised bank. A ceiling DEPARIS (BNPI of 202 of shares was allowed to non-resident investors. - Not characterized asa privatization. Only 251of shares were offered.Sale was prior to August 1986 privatization law. (5) SOCIETENATRA Aerospace Fragmentation/Privatesale/ Proceeds:FF l.Ob - In September1985, MATRAsold 2 subsidiaries: COMELIN(printed Public offering, circuit cospany) and ROBOTRONICSlexperimental robot modules plantl. (I - Sold two subsidiaries to Americanbuyers and its machinetools subsidiary, MMA. Plans to sell its car division and loss-makingwatch division. (3) PRIVATIZATIONTECHNIOUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COhMENTS

- Further privatization foreseen for end of 1987has beenpostponed. State's stake in llATRAwtas 51%. Early 1988,19l oi total shareswere sold to the public, 22X to a hard core of investors (maximum6X stake wasallowed for hard core), 4.50 to employeesand about 60 were reservedby the State for further distribution of free shares to individual investors who have held on to their shares forat least one year. SOCIETEGENERALE ALSA- Bank Public offering. Proceeds:FF 0.7b - A total of 5.7 s shares were floated at FF 125 a share. 90X were CIENNEDE BANDUE offered to the french-public and 10 to the employees.(4) (SOGENAL) - State equity holding of 470was privatized. Residual shareholding by SOGENALwas also later privatized. (5) COFPAGNIEFINANCIERE Financial corp. Public offering/Private sale. Proceeds:FF 13.6b - Privatization including following subsidiaries: BANQUIEPARIBAS, DEPARIBAS CREDITDU NORO, BANOUE TARNEAUD. (4) - A total of 32.7 m shares were offered at FF 405 a share: 44% to the french public, 10%to employees,24.3% for the hard core and 16.20 abroad. Balancein free shares presently held by the State. (4) - Becauseof demandfor PARIBAS shares, original 200 stake reserved for foreigners was cut to accoeodatedomestic demand. - Flotation is the largest one in France in the banking sector. COllPAGNIEFINANCIERE DE Financial corp. Public offering/Private sale. Proceeds:FF 4.3b - Privatization including following subsidiaries: CREDITCOMMERCIAL DE CREDITCOMNERCIAL DE FRANCE,UNION DE BANOUESA PARIS, EUROPEENNE DEBANGUE, BANQUE CHAIX, FRANCE(CCF) BANQUEODIER-BUNGENER-COURVOISIER. (4) - CCFis the sixth largest French bank in terms of total assets. - Since CCFis viewed as a more likely take-over candidate than PARIBAS, the formation of a core of shareholders (instituional investors) represents an important defensive step to avoid the potential embarass- went that would result if CCFis taken over. - 38.9 a shares wereoffered at FF 107 a share: 41X to French public, ° 100 to employees,300 to hard core and 170 to foreign investors. (4) BANGUEINDUSTRIELLE ET Bank Public offering/Private sale. Proceeds:FF 0.5b - 2.3 e shares wereoffered at FF 140 a share: 33% to French public, MOBILIEREPRIVEE 90 to employeesand 51Xto the hard core. (4) - 0.280free shares were given to those keeping shares fora period. (5) BANOUEDU BATIMENT ET Bank Public offering/Private sale. Proceeds:FF 0.4b - 2.9 n shares wereoffered at FF 130 a share: 36X to French public, DESTRAVAUX PUBLICS 100 to employeesand 51%for the hard core. (4) COMPASNIEGENERALE Power Public offering/New investnent. Proceeds:FF 8.6b - Sale of 43.6s shares for FFr 290 was the biggest under the privatiza- D'ELECTRICITE tion so far. Of the 39.6mshares offered, 640sold on the French earket, 9X were reserved for group's employeesand 18%were sold in international capital markets, including US placement; balance kept by the State in free shares. - Contains two novel features: a capital increase of $S.OSBto be accomplishedby selling newshares and private placeeent of $35awith USinstitutional investors which have agreed to restrictions on reselling thee. - This capital increase was wadeto support C6E's recent communication deal with ITT. AGENCEHAVAS Advertising Public Offering/Private sale. Proceeds:FF 2.6b - Governeentsold its 50.3X stake in HAVASin may1987. the rest was already in private hands. 220 sold to group of shareholders, 200 to the public and 5% to employees. Balance in free sharespresently held by the State. - 2.3 a of shares wereoffered to french investors at FF 500 a share. 2.5 m additional shares were allocated to larger investors at an 8X premium(FF 540) to forma stable core controlling 200of the group. 500,000shares were offered to HAVASemployees: half of HAVASstaff (6,000) becameshareholders. Governmentwill retain a golden share to veto any new shareholder taking 10%or moreof HAVASin the next 5 years. PRIVATIZATIONTECHNIGUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COKMENTS

IDt industrial Holding Employeebuy-out. TFI Media Public offering/Private sale. Proceeds:FF 4.3b - 19.S e of shareswere offered for sale at FF 165a share: 37X to the French public, 101 to employeesand 50X to the hard core (a consortium led by the French group BOUYGUES);3.5X kept by the State for distribution of free shares to public. COMPABNIE6ENERALE DE Communications Private sales. Proceeds:FF l.6b - Companymas sold to a consortium ledby ERICSSON(Sweden), including CONSTRUCTIONSTELEPHO- French electronic coapanyMATRA, BANGUE INDOSUEZ (France) and the NIQUES(CGCT) BOUYGUESConstruction group (France); the activity having been taten over by the new companyMET, C6CT was dissolved and liquidated. - private telephone service subsidiary, CGCTCommunications, was sold to the MATRAgroup in December1986.

SOCIETEGENERALE Bank Public offering/Private sale. Proceeds:FF 17.7b - First stec in privatization was direct sale of 49X. (5) (Subsidiaries including - 43.6 e of shares were launchedon the market at FF 405 a share: SOC.GENERALE ALSACIENNE 491 to the French public, 10 to employees,26X to the hard core DEBANQUE and SOC.CENTRALE and 16 to international investors. (4) DE BANlUE) COMPAGNIEFINANCIERE Financial corp. Public Offering. Proceeds:FF 15.5b - Privatization including following subsidiaries: BANOUEINDOSUEZ, SUEZ BANQUELA HENIN,BANQUE MONOD, BANQUE PARISIENNE DE CREDIT, BANGUESOFINCO, BANGlE VERNES ET COMMERCIALEDEPARIS. (4) - 49.4 e of shareswere sold at FF 317a share: 33X to French public, 301 to hard core group of domesticinvestors, 9% to foreign investors membersof the core group and 1 to private foreign investors. MUTUELLEGENERALE Insurance group Transfer of control. - Privatization including MUTUELLEGENERALE FRANCAISE-VIE and FRANCAISE(MEF) MUTUELLE6ENERALE FRANCAISE-ACCIDENTS. (4) - MOFwas a cooperative institution in which the State had no equity, but held controls by other legal provisions. A legal transformation N occurred to transfer control to the cooperative. (5) WATERDISTRIBUTION SYSTEMSWater distribution Managementcontract/lease. - Water distribution systemsin several municipalities are handled by private companiesunder managementcontracts and 'Contrats d Affermage' (and concessions). CREDITAGRICOLE Bank Private sale. - Parliasent voted (Jan 8S) the lawwhich returned CA from the State to (CA) itsregional memberbanks. Price set was $1.2 b. - The refora transforms 2 central organs of the CAgroup into commonlaw companies. - CAISSENATIONALE, which acts as a central treasury to the 94 regional CA is mergedwith the joint guarantee fund which insures the regional banks. TheState sold 90Yof the new companyto the regional banksand 10 to the employeesof CAISSENATIONALE and its subsidiaries. The state retained the right to approvenosinations to the post of managingdirettor of CAISSENATIONALE as long as CA is the only institution whichallocates public low-cost farm credit.

(I) Divestiture of SOEsin LDCslop. cit.) (2) Financial Aspects of Privatisation of Public Enterprise: Caseof Italy (5/8Oi. (3) Privatization Worldwide- AdamSaith Institute (1986). (4) Je crois en lhoumeplus qu'en IlEtat (E. Balladur, 1987); somedata subsequentlyadjusted. (5) TheFrench Treasury.

GABON

COMPLETED:SOCIETE NATIONALE DES WoodMarteting Sale of assets. BOISDU BABON SONAGA Insurance Private sale, - Sold to a private foreign insurance company. PIle Sale of assets. - Following its liquidation, P1ZO'sproductive assets weretransferred PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVIIY MEIHDD/PROCEDURE SIZE INDICATOR COMMENTS

to a foreign oil company.

GAMBIA

PLANNED: AFRICANHOTELS Hotel Private sale. - 6overnmentshares in this hotel to be sold by March1987. (2) GAMBIAUTILITIES CORP. Utilities Fragesntation. - 6as retailing activity of 6UCto be spunoff and sold by wayof a private placesent. (2) GAMBIAAIRNAYS LTD. Airlines Private sale/Newinvestment/ - Decision awaits findings of a review of agreementsbetween Managementcontract, governmentand BRITISHCALEDONIAN AIRWAYS. (2) AA N LTD. Livestock Board Private sale. - Governmentto sell shares to private Gambianentreprenuers. (2) 6AMBIACOMMERCIAL AND Bank Public offering. - GCDBhas beenincorporated under ComcaniesAct as prelude to opening DEVELOPMENTBANK (GCDB) of its share capital to domesticand foreign equity participation with WorldBank assistance. (2) GAMBIANATIONAL INSURANCE Insurance CompanyPublic offering. - Transformedinto a limited liability companyand share capital to be CORPORATIONiSNIC) openedto domestic private participation by June, 1987.(21 6AMBIAPUBLIC TRANSPORT Transport Public offering. - Incorporated under CompaniesAct, discussions have been initiated with CORPORATION(SPTC) Federal Republic of Germanyto ascertain support for opening share capital to private participation (relevant due to substantial German grant to GPTC).(2) NATIONALTRADING CORPORA- Trading Company Public offering. - To be transformed into a limited liability companyand share capital TIONOF THE GAHBIA to be openedto domestic private participation by June, 1987. (2) UNDERWAY:GAMBIA PRODUCE MARKETING Marketing Board Fragmentation/Private sale. - Proposal to break-up GPMBand its activities hived-off, Activities to BOARD(GPNB) be privatized are rice milling, real estate holdings, construction, briquette makingand possibly cotton ginnery. - Feedmill wassold to a private investor and soap factory operations and refrigeration maintenancesections have been discontinued. (21 SPA SHIPYARDA FERRIES Transport Fragmentation/Leasing/ - Amongits manyactivities, the ferries and dockyardoperations are Sale of assets, to he spun offand sold by private placements. (2) BOOKPUBLISHING A Trading MATERIAL(Resource Unit of Departbent of Education) BANJULBREWERIES Brewery Private sale/Public offering. Proceeds:Dn 0.4m - 6ovt.holdings of W 9%to be sold to employeesor to hoteliers/ distributors if there is insufficient employeeinterest. - Governeent'sholdings suffered dimunition following a capital restructuring in 1984. Governmentshareholdings nowat 3,990. (1) KOMBOBEACH HOTEL Hotel Private sale, - Government'sprevious efforts to sell shares of hotel faltered over price issue. Renewedefforts have beenmade to dispose of shares by June, 1988. (2) SUNWINGHOTEL Hotel Private sale. - Sale of shares via competitive bidding. COMPLETED:ATLANTIC HOTEL Hotel Lease. - A lo years lease plus option to buy wasgiven to a U.K.Hotel company. SENEGAMBIABEACH HOTEL Hotel Private sale/Newinvestment. - Share capital has been restructured resulting in reducedshareholding for governmentfrom 60-49X. Additional foreign private investors have subscribed in the equity of hotel. Further efforts at divestment to be made.(2) NATIONALSTANDARD BANK Bank Public offering. CFAO(GAMBIA), LTD. Public offering. - Minority shareholdings sold. SEAGULLCOLD STORES Cold Storage Lease. - Competitive bidding applied. [Fishing Company] Fishing Management/Employeebuy-out. (3) n.a. Sawmill Lease. (3) - Competitive bidding applied.

(1) Divestiture and Rationalization Plan Underthe EconomicRecovery Programme (9/86). (2) Divestiture Strategy - Action Plan (9/86). (3) NIB, the Gambia. PRIVATIZATIDNTECHNIJUES COUNTPY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZEINDICATOR COMMENTS

GERMANY,FEDERAL REPUBLIC OF

PLANNED; DEUTSCHEPFANDBRIE- MortgageCompany Public offering. - Privatization scheduled in 1988. FANSTALT DSL(Deutsche Siedlungs Bank Public offering. Proceeds:DM 400e - A holding cospanywill be created whoseonly asset willbe DSLBank. UndLandesrentenbank) (estimation) - Sale of half of DSLBank is scheduled for 1988. COMPLETED:VIAG AG Aluminum/Energy Public offering. Proceeds:DM 590V - 40Xof VIAGwas sold in 1966 and the remainderof its holding would (1986) be sold in 1988. VERAAR Energv/Chewicals Public offering. Latest Proceeds; - VEBAis a conglomerateholding shares in 465 enterprises. DM 2.5m (1987) - In early 1984, Governeentcut back itsexisting holding in VEBAfrom about 43Xto 30% and in March, 1987, the remaining shares weresold at homeand abroad. VOLKSWAGENNERK,AS Car Manufacturing Public offering. Latest Proceeds: - Governmentsold its remaining holding of 16%of VW'scapital. DM1.5b (1987) IVGAG Property/TransportPublic offering. Proceeds:DM 45.9w - 45% was sold in 1986 amountingto DM45.9m out of a total of OM 1hUm (1986) share capital. - IV6 is responsible for crude oilreserve of governmentand is also active in transport and defense. (1) LUFTHANSAAG Airline Public offering/New investment, Capital: DM 990a - In August, 1987 LUFTHANSAincreased its capital with the 60verneent (1985) contributing only in part to the capital increase. By doing so, the governmentreduced its share in the voting capital of LUFTHANSAfrom 91% to about 76%X - LUFTHANSAincreased its capital through the issue of regular shares of DM 900min addition to DM 1.2B. The Government'sparticipation in the capital increase was only to the extent of loans outstanding. Its portion of the share capital wasreduced from 74% to 65% while its portion of voting capital fell froe85% to 72%. DEUTCHVERKEHRS KREDIT- Bank Public offering. Proceeds;DM 18.7w - In March, 1988Government sold 25% for a nominalamount of DM 18.7e N) BANKAG (DVKB) (11BB) out of DM 75w share capital of DVKB.

GHANA

PLANNED: - The planned privatizations listed here are extracted from an 'Invitation to interested investors' published by the Governeentof Ghana. - The preaeble of the notice indicates, in part, that; 'Ghanapresently has no less than 181 State-ownedEnterprises (SOEs) which are either wholly-ownedState-owned, or in which 6overnment holds majority shares. In addition, there are 54 enterprises in which governmentis a minority shareholder. Almosteach one of these enterprises is in need of recapitalisation and rehabilitation in order to achieve improvedviability. To undertake the refunding of all these enterprises alone in the face of the manyother competing demands,the governmentwill have to resort to additional large scale external borrowing. This will obviously worsenthe national debt situation and introduce additional hardship on the people. To avert this situation the governmenthas decided to mobilise available non-governmentalresources for this purposeby inviting interested legal entities to join it in operating these enterprises. The invitation for equity participation consitutes the governeent's divestiture programme.Through the participation scheme,the Gcvernmenthopes to mobilise resources to strenghten the SOEs selected for the programmewhile we disburse budgetaryresources to support the manystrategic State-ownedenterprises, which government wishes to continue to own Wholly.' PRIVATIZATIONTECHNIOUES COUNTRY ENIERPRISE ACTIVITY METHODDPROCEDURE SIZE INDICATOR COMMENTS

STATEFISHING CZRPORATION Fishing, cold NewPrivate Investbent. storage GHANASUGAR ESTATES LTD. Sugar, distilled NewPrivate Investaent. spirit. FARMSIN THESTATE FARMS Aqriculture NewPrivate Investment, CORPORATIONGROUP FOODPRODUCTION CORP. FoodCrop Farming NewPrivate Investaent. BASTFIBRE DEV. BOARD Bast fibre prod. NewPrivate Investment. SOMEHOTELS IN THESTATE Hotel, catering NewPrivate Investment, HOTELSGROUP TEMASHNPYARO ANDDRYDOCK Shipbuilding, dry- NewPrivate Investaent. CORPORATION docking TWOWORLDS MANUFACTURINO Paints, allied NewPrivate Investment. COMPANY surface coatings NEOPLAN(OH) LTD. Coachbuilding NewPrivate Investsent. WILLONBROOK(OH) LTD. Buses/coaches NewPrivate Investment. asseabling. VICTORYINDUSTRIES Artificial leather NewPrivate Investaent. GHAMOTENTERPRISES LTD. Timber NewPrivate Investment. NIC SOAPSAND DETER6ENTS Soaps, detergents NewPrivate Investment. NICMETAL FABRICATION Metal tabrication NewPrivate Investment. NIC FARMS Agro industries NewPrivate Investment. SEA PACKA61N6 Packaging New Private Investment. KWAHUDAIRY FARMS Cattle ranching, NewPrivate Investment. diary products 6HAMOTTEXTILES Textiles NewPrivate Investment. SAVAFARMS Foodcrop farming NewPrivate Investment. t GHAMOTMOTOR ENGINEERING vehicle assemblingNew Private Investment. CO., LTD. SEAAND ACCESSORIES Import, export NewPrivate Investment. GIHOCMOSOUITO COIL Mosquitorepellent NewPrivate Investment. BIHDEVEDETABLE OIL Vegetableoil NewPrivate Investment. MILLSCO., LTD. SIHOCMOTORS AND MACHINE Fabrication of NewsPrivate Investment. SHOPLTD. machineparts SIHOCPAPER PRODUCTS Printing, paper NewPrivate Investsent. ANDPRINTING CO., LTD. products OVERSEASKNITWEAR FABRIC Textiles NewPrivate Investment. LTD. FAMEKWATRADING CO. LTD. Distributive trade NewPrivate Investment. METALLICOLIMITED Metal forming NewPrivate Investment. DL STEEL(IH) LTD. Steel structural NewPrivate Investment. f abrication LABADIPLEASURE BEACH Hotel, catering NewPrivate Investment. COMPLEX STATECOMPANIES IN THE Mining (gold, NewPrivate Investment. IINING SECTOR diamond,bauxite manganeseetc.) COMPLETED:6HANA SUGAR ESTATES,LTD. Agro-business Managementcontract/Private - A ManagementH Subscription Agreementwas signed wt NVAINTL, sale/Joint venture. (2) N.V. in 1970. 11) STATE60LDMINING CORP. Mining Managementcontract. Sales: Cd 113e (1902) - A Project ManagementAgreement equivalent to a ManagementContract OFGHANA was signed with CANADA-6HANAMINING GROUP (CGM) in 1985. (1) VOLTAALUMINUM COMPANY Aluminum Managementcontract. - Contract awardedto KAISERALUMINUM SERVICES (USA). (U) FUL6URITASBESTOS Asbestos - Governmentholds indirect minority shares. WESTERNCASTINGS Castings - S6verneentholds indirect minority 125T)shares. 6HACEMLTD. Cement Managementcontract. Sales: Cd 410w(1983) - Improvedmanagement exDerienced by signing of contract with NOREENof PRIVATIZATIONTECHNIGUES COUNTRY ENTERPRISE ACT!VITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

Norway. GHANANATIONAL TRADING GeneralTrade Managementcontract. Sales: Cd 1.7B (1984) - Managesentteam headedby a retired Unilever executive turned GNTC CORP.(GNTC) fror bankruptcy to modestprofitability in 1983.

(1) ManagesentContracts (op. cit.)

6RENADA

PLANNED: GRENLEC Electricity Private sale. (3) UNDERWAY:SRENADA BANK OF COMMERCE Commercial Bank Public offering. - Governmentis in process of valueing and preparing prospectus for its privatization, (3) NATIGNALCOMMERCIAL BANK Commercial Bank Public offering. - Governmentis in process of valueing and preparing prospectus for its privatization. (31 COMPLETED:GRENADA BEACH HOTEL Hotel Lease. - Only large hotel, it was leased to a private developer whoagreed to rehabilitate it at a cost of $6-14m (1) lease for 99 years. (2)

(1) Divestiture inDeveloping Countries (op. cit.) (2)Divestiture of SOEsin LDCs(op. cit.) (3) 6renadaPrivatization - Center for Privatization (2/87).

GUINEA

- Governments stated policy is to divest public sector entirely of the manufacturingSOEs. Its approachhas been to solicit bids from private (foreign and local) parties on the SOEsas going concernswithin a market economyas defined by,among others, the new investment code. - Objective of the governmentis not for the private sector to take over existing SOEs,but create new private-controlled companies. N

UNDERWAY:COMPLEXE TEXTILE SANOYA Textiles Private sale. Workforce: 532(1984) - To be taken over by UCO/SCHAEFFER(France/Belgium). Agreeaent calls for societe d'economiemixte although percentageof sharesnot yet determinedby Government. ENIPHARGUI Pharmaceuticals Private sale. Sales: Sy 35o (1984)- Interest wasexpressed by BERNARDTOOPIE group. S06UIREP Chemicals Private sale. Sales: Sy 3.2m (1984)- Offer wasreceived from VALERY(France). Secondoffer by RASAis being prepared. SOCIETEGUINEENNE DES Plastics Private sale. Sales: Sy 14.4s (19841- Technical assistance to be financed by EECwill be linked to PLASTIBUES(SOGUIPLAST) a possible take-over. USINEDE BOISSONSFOULAYA Private sale. - Interest wasexpressed by STELLAARTOIS (Belgiua). SALGUIDIA Joint venture, - No ofiers received and most likely cill stay in present form with interests shared by Governmentof Guineaand Libya. HUILERIEDE DABOLA Agri-business Sales: Sy O.RE(1984) USINEDE MEUBLESDE Manufacturing Sale of assets, Woriforce: 75 (1984)- Bids being received/offers made. SONFONIA COMPLETED:BONAGUI Soft Drinks Private sale. Sale Price: GFr85m - Takenover entirely by the private sector. 70Qwas purchasedby (1987) OVERSEAS/COCACOLA(Belgium/USA) and 30%by private Guineans. ENTAALLUMETTES Tobacco/Cigars Private sale, - Takenover by SOTROPOL(Ivory Coast). Newmonopoly rights granted. USINEDOBXYGENE ACETYLENE Oxygen/Acetylene Private sale. - Takenover by SHABANBROTHERS LTD (Lebanon). PRIOUETTERIEDEKANKAN Bricks Private sale, Sale Price: GFr25M - Takenover entirely by SIDAF(Guineal. (1987) SONACAGCARREAUX Building Materials Private sale. WArkforce: i! (1984! - Takenover by AUDEMARD/ESCEC(France), that has 51%equity share in the comnanv. TheGovernment retains a 30X share, and a private party a 19Xshare. GARIKINDIA Agri-business Sale of assets, PROJECTSMARAIS-SALANTS Agri-business Sale of assets. PROJECTSUCRERIE BANIAN Agri-business Sale of assets. PORTOF CONArRY Pnrt activities Pr.vate sale/Lease. - Run by four SOEs: PACresponsible for port handling operations; PRIVATIZATICNTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

ENTRAT,for custom clearing/noving of goods; SNl, forbrokerage services; and SOMIDRATfor dredging of port channels. - Approachwas to strip PACof its handling operations and along with responsibilities of three other SOEs,privatize these to establish private coapaniesto take over assets and responsibilites of SOEs. - In 1986Transport Ministry obtained consulting services to organize and institutionalize private interests to supply various services. AIRPORTOF CONAKRY Airport Managementcontract. - Operatedby a service companytechnically supported by AEROPORTSDE PARIS. Theservice companyhas taken over all debts of the airport although governmentis obligated to guaranteeloans to the service companyin case of deficit operations. ENTATABAC Cigarettes Private sale. Sale Price: 6Fr t86a - Takenover by CAITA/ROTHMANS(France/UK). Governeent retained 200 (1987) while 290went to private Suineaninvestors and 510to foreigners. USOA FarmImolements Private sale. Sale Price: GFr28m - Sold entirely to foreign {750) and local 12501investors. (1987) REEM-6UINEE Oxygen/Acetylene Private sale. Sale Price: 6Fr 420a - Sold entirely to foreign (809)and local (200) investors. (1987) SIPAG Dread Private sale. Sale Price: GFr31a - 51X taken over by UNIBRA(Belgium). 391 weresold to local (1987) investors while governmentretained 10. SOPAG Essential Oils Private sale. Sale Price: 6Fr 980w - 51Xsold to foreign investors and 39Xto local investors while the (1987) qovernmentretained 100. Was granted new monopolyrights. SOMIAB Stone Aggregates Private sale. Sale Price: 6Fr 682w - Governmentretained 30X while 51X went to foreign investors and 19X to (1987) local investors. IMPRIMERIEDE LA Printing Office Private sale. Sale Price: 6Fr 20e - Takenover entirely by IBRAHIMASORY TOURE N'FAMARA CAMARA REPUBLIQUE (1987) (Guinea). SIPECO Paints/Pesticides Private sale. Sale Price: GFr68m - 66Xof SIPECOwas ourchased by 506EREF(France), 240 by local (1987) investors and 10 was retained by government. Was granted new N monopolyrights. 0, SOPRAG Matches Private sale. Sale Price: GFr235e - 410was sold to foreign investors, 490 to private 6uineans and 100was (1987) retained by government, SOBRAGUI Brewery Private sale. Sale Price: GFr250w - 51X waspurchased by UNIBRA(Belgium) whosepurchase price wasreport- (Societe de Brasserie (19B7) edly 50X lower than a previous offer of B61 (France). de Guinee) - 340was purchasedby private Guineansand 15Xwas retained by government. USINEJUS DE FRUIT KANKAN Fruit Juice Private sale. Sale Price: 6Fr 23n - Takenover by VANGELATOS/ELH. MORIBA, 100I was sold to private (1987) Guineans. SCIERIEDE N'ZEREKBRE Lumber Private sale. Value/Transfer Price: - 49X waspurchased by a foreign investor while governmentretained GFr367r (1987) 510. GUITEX Cotton Textile Lease/Private sale. - Assets of 6UITEI mere leased from the government. 600 of equity was sold to foreign partner while governmentretained 400. NATIONALWATER OISTRI- Water distribution Lease - Bidding is taking place for a 'Contrat d'Afferwage' - BUTIONSYSTEM SOPROCIMENT Building saterialsPrivate sale. Sales: Sy 162h (1984) - Takenover by a Belgian companyin early 1988. CONSERVERIEMAMOU Agri-business Private sale. Workforce: 33 (1984) - Privatised in 1987. USINEDE THE(MACENTA) Tea Private Sale. Sales: Sy 2s (1985) - Privatised in 1987. SOPEC Chemicals Private sale. Sales: Sy 7a (1984) OUININERE SERDOU Agri-business Private sale. Sales: Sy 23a (1984) SOCIETEGUINEENNE DE Private sale. Sales: Sy 57e (19B4) FABRICATION(SOGUIFAB) BRIGUETERIEDEKOBAYA Sale of assets. CERAMIOUERE MATOTO Sale of assets. HUILERIEDE KASSA Agri-business Sale of assets. Workforce: 20(1984) SOMOVA Sale of assets. IGAT Sale of assets. USINESMODERNES DE Sale of assets. Sales: SY1.6a(19B4) CONAKRY PRIVATIZATIONTECHNI°UES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZEINDICATOR COHHENTS

SDFAB Sale of assets. USINEDE PANNEAUXDE Sale of assets. (SEREDOUR SUKOBA Agri-business Sale of assets. Sales: SY13.4m(1984) BARIFARANAH Agri-business Sale of assets. Workforce: 117(1984)

6ULFSTATES

PLANNED: 6ULFAIR Regional Airline. Private sale. Profits: $116e - Negotiated sale of 49X to nationals of owningcountries: Qatar, Oman,UAE and Bahrain,

HONDURAS

- In .198460verneent announced intentions to sell several loss-sakino subsidiaries of CONADI.In September1985, Legislative Assembly approvedlaw authorizing such sales.

PLANNED: CONADI Holding Company - In 1987, Governaentannounced the privatization of 30 state owned companiesengaged in tourist, metallurgy, agro-industry and food processing. This is the first step of a three year programto divest state of 61 firms run by CONARI.(1) Someof these are listed below. CONTROLLING: SISTEHASINTERNACIONALES Wall Panel Private sale. - Full privatization. DELA CONSTRUCCIONFabrication PACARSA Paper Hull Sale of assets. - I0OZof the assets for sale. AZUCARERAY0O3A Sugar hill Private sale. - 52X of the shares belonging to CONADIis for sale. MEJORESALIhENTOS FoodProcessing Sale of assets. - lO0%of the assets for sale. AGRICOLADEHONDURAS TomatoGrowers PLANTDE PRODUCTOS Dairy Products Private sale. - For sale is 921 of the shares ownedby CONARDIand BANADESA. LACTOSSULA INDUSTRIANACIONAL DEL Steel Hill Sale of assets. - 1002of the assets for sale. ACERO ACERDSINDUSTRIALES Steel Hill Sale of assets. - 1002of the assets forsale. HOTELDESATUR Hotel INDUSTRIACEHENTERO Cement Private sale, - CONADI's80X share holding for sale. RONDURENAS.A. DEC.V. AZUCARERACENTRAL Sugar Hill Private sale. CONADI's792 share holding for sale. FUNDICIONESCENTRO- AHERICANOS DESARROLLOSTURISTAS Hotel and Villas Private sale. - CONARDIs55X share holding for sale. DETELA S.A. HOTELERAYVOIA Hotel/Services Sale of assets. - For sale is 100Iof assets. RIDER: CRHDEFOR Holding coapny - Several companiesheld by COHDEFORare also to be privatised. COMPLETED:HETALES Y ALUHINOS Kitchen Utensils Private sale. Sale Price: $120,000- Sold through direct negotiation to private investors in November, S.A. (IETALSA) (1987) 1987. Allshares were sold (1002state participation). (2) FUNDICIONESCENTRO- Private sale. Sale Price: $ 1.0 - Sold to private USinvestor un January 1988.Funds are being obtained AHERICANDS,S.A. (1987) in a debt/equity swapwhich is not yet finalized. 1002reduction in state participation. (2)

(I) Divestiture of SUEsin LDCslop. cit.) 12) Center for Privatization, U.S.A.

ICELAND PRIVAII?ATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY !ETHOD/PROCEDURE SIZE INDICATOR COMMENTS …------COMPLETED.ICELANDAIR Airline fananaenentBuy-Out. - In 1905ICELANDAIR management bought back 20X of its equity held by the government.

INDONESIA

- The6overnment is undertaking a review of the financial performance of all public enterprises, to identify notential candidates for rehabilitation, mergeror divestiture.

PLANNED: PT DJAKARTALLOYD ShippingCompany 6ARUDA Airline - Is beinq considered for a partial sale bv Government.

COMPLETED: na. Mining Lease. - Governmententered into lease agreeaentswith: P.T.Intl. Nickel, Indonesia (Canadal:P.T.BrokenHill Proprietary, Indonesia (Austra- lia); Riotinto BethlehemService lUK); PT. Kennecctt, Indonesia (USA); PT. Tropic Endeavour,Indonesia (Australia); PT. Pacific Nickel (Australia), Indonesia Nickel DevelopmentCompany, Ltd. (Japan); & PT. Balies Valley Minerals (Australia) between 1968-1971. ! n.a. TelecomsunicationsLease. - Governmententered into lease agreementswith INTERNATIONALTELE- PHONEand TELEGRAPHCORP. (USA). (U) PT KRAKATAUSTEEL Steel Fragmentation. Profits: Rp 45.SB - Companybecame an autonomousentity. Steel was soun-off as a (1906) separate activity.

11) ManagementContracts (op-cit).

ISRAEL

- Two Americanfirms were appointed consultants to prepare proposals for privatization of various corporations including those mentionedbelow and wereasked to underwrite shares to be sold on international markets.

PLANNED: ISRAELCHEMICALS Chesicals Public offering. BEZEK TelecommunicationPublic offering. UNDERWAY:PAZ PETROLEUM CORP. Trading Private sale. - Sold in 19B0to Australian investors. COMPLETED:HAIFA CHEMICALS Chemicals Private sale. - Sold in 1986to U.S.investors. ZIONCABLES Cables Private sale. Proceeds:$12w - Sold in 1986to a South Americangroup and a leading Israeli (1986) conglomerate,CLAL INDUSTRIES.

IRAQ

- Governmenthas managedto sell off dozensof fairly small enterprises in the agricultural and service sector.

PLANNED: IRAQIAIRWAYS Airline Public offering. - Is being restructured prior to sale of about 50X of its shares. UNDERWAY: n.a. State farms COMPLETED: n.a. Supermarkets Private sale. n.a. Petrol stations Private sale. na. Car maintenance Private sale. Centers

ITALY

- Newregulations of CUNSOB,the Italian stock exchangecommission, deeandthat companiessell a einiaum of 25%of their shares to the FRIVAT:ZATIONTECHNIOUES COUNTRY ENTERPRISE ACTIVITY METHOD,PROCEDURE SI1E INDICATOR COMMENTS

oublic as a condition of stock exchange nuotation. Newly listed or would be listed stocks are expected to coanly while already quoted stocks havethree years to adjust. - Thefollowing privatization transactions are indicative only as EFIM and ENI havesold holdings in morecompanies than listed here.

- The table does not include entities other than companies. For instance, minority holdings in public entities such as certain public banking institutions are omitted. -Information on IRI group transactions can be found in Volume 11 of this report.

PLANNED: MEDIOBANCA(IRI) InvestwentBank Private sale. - Three commercialbanks controlling MEDIOBANCAare: BCI, CREDITO ITALIANOand BANCODl ROMA,all controlled by IRI. IRI owns56X of MEDIOBANCAand wants to reduce its stake to 25X. ENICHEMAUIGUSTA (ENI) Chemical Public offering - It is envisagedto offer 25X of the capital stock, Placesent to be effected through a consortiumof MEDIOBANCAand SOFID. UNDERWAY:SME ISOCIETA' MERIDIONALE Food Private sale/Public Sale Price: It. L 497B- Sale of SMEto Carlo De Benedetti's INDUSTRIEBUITONI PERUGINA FINANZIARIAIilRI) offering. (2) has not proceededdue to litigation. - Subsioiary of DRI, the state industrial holding company. - Underterws of sale to BUITONI,MEDIODBANCA and ISTITUTO MOBILIAREITALIANO 1IMI) would have paid IRI a further L lQOBfor minority equity shares on top of L 397B(S 201X) to be Daid by De Benedetti for SME and SIDALK,another IRI food subsidiary. - DRI'sshare has been decreasedfroa 72%to 64X in 19S5. (21 SIDALM(SOCIETA ITALIANA Food Private sale. Sale Price: It.L 497B- IRI agreed to sell this subsidiary along with SME to Be Benedetti's DOLCIARIOALIMENTARE BUITONIfor L 397B(S 201m)and a further L 1B for minority equity MILANO)(IRI) stakes to be paid by MEDIOBANCAand IMIl. ' SANBIORGI ELETTRO- Dowestic AppliancesPrivatesale. Sale Pricet It. L 12.4- Sale to OCEANGROUP. DOMESTICI(IRI) - SOFINsubsidiary privatized un 1964. (4) STETIPRI) TelecommunicationsPublic offering. Proceeds: It. L 9SOB - IRI's share has decreasedfrom 83X to 64XIn Decesber, 0995.12) 4.7X of shares were placed abroad. COMPLETED: IRI GROUP: BCI (BANCACOMMfERCIALE Bank Public offering. ProceedsIt. L 555B - &overnmentreduced itsstake further from 76X to bQXIn 0905.(2) ITALIANA) (1905) - 60 of PCIshares was Placed in the Eurowarketand a further 6X of shares wasthe placed in the dosestic aarket. - Banl. is proposing to extend privatization with sale of up to 171 of its equity. A further reduction of BCI'sholdings wouldhave the effect of privatizing MEDIUBANCAwhich is 20% ownedby DCI. CREDITOITALIANO Bank Public offering. - IRIs share has decreasedfrow 771 to 59X in 1986. (5) BANCODl SANTOSPIRITO Bank - Ownedby IRI, 32% is nowprivately held. BANCACENTRO SUD Bank Private sale. Sale Price: S 160m - In May, 1985 BANCODl ROMPsold its 740 share to CITIBANK. DALMINE Public offering. - IRI's share has decreasedfrom 550 to 520in December,1(85. (21 ALITALIA National Airline Public offering. Proceeds:It. L 590B - II's share has decreasedfrom 94X to 720in December,1995. (2) (19B51 - 50m preferred shares wereplaced abroad. Initially 100of its equity was sold to the public in the stock market as part of the programto place at least twice as muchin private hands. (t3) ALFAROMEO Car Manufacturer Private sale. Sales. N 1.20 - Sold to FlAT, S.p.A. ALFAROMEO was controlled by IRI-FINMECCANICA. !1905) - Two proposals consideredwere FORDMOTOR COMPANY's 1 9Qm cash for an initial 19.5X interest to be increased to 51XIn three years) and FIAT's(investment of N 3.57Bover five years to improveimage of ALFAand mergerof ALFAwith FIAT'sLancia division,. - FIATs winninq bid called for arouiring 100lof ALFAimsediately. Five trillion lire (I 3.7B) mere invested in the new companythat unites ALFAwith FIAT'sLancia luxury car division. PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY !EIHOD/PROCEDURE SIZE INDICATDR COIiMENTS

SIP (SOCIETAITALIANA Te1ecomaunicat;onPublic offering, AmountOffered: $ 75e - Offering of 35%of shares to Italian and foreign investors PERL'ESERCIZIO (1935) representing only partial privatisation. Governeentholds 86X and TELEFONICOI plans to reduce it to 51X.(1) - About$ 600e is expectedover 1986-89from sale. - Controlled by IRI-STETgroup. - 120e shareswill be offered at L2,700 ($1.42) eachwith an option to buy additional savings share at the sameorice. Of the shares, 70m will be reserved forpublic offering in Italy and 50s will be reserved for foreign institutional investors. An additional 30.will be offered by IIEDIOBANCA. - IRI's share has decreasedfrom 81X to 54X in December,1985. (2) CREDITOFONDIARIO Financial Service Public offering. AERITALIA Aerospace Public offerinq. - 35%of sharesoffered to the public. - Sharesoffered represent Governeent'sminority stake. SIRTI TelecommunicationPublic offering. Proceeds: It. L 200B - 40%of its shares wasoffered on the Milan bourse. 52. shareswere Installation soldin June, 1985. - State reducedits holdings from88% to 48%. - 95%owned by IRI-STET group, 3% is held by PIRELLIand 2% by CREAT TYREand CABLES. SELENIA Electronics Public offering. AIIOSTRADE RoadConstruction Public offering. ANSALDOTRASPORTI Electromechanics Public offering. ITALCABLE TelecommunicationPublic offering. - Governments stake in this intercontinental telecommunicationscarrier wasreduced to less than 51Xas of June, 1986. (4) CEMENTIR Building Materials Public offerinq/Private sale. - IRI's share has decreasedfrom 67% tc 50% in December,1985. (2) - Subsidiary of IRI-FINSIDERstate steel group. - In April 1987,the loss-makingFINSIDER asked PARIBAS (French merchant bank) to handle the disposal of its 51% shareholding in CEBENTIR. An offer has been madein June, 1987by a consortiumconsisting of the cementcompanies controlled by the AGNELLI,FERRUZZI and PESENTI groups. SEIAF High-tech Cospany Private sale/Joint venture. - Partnership involves 1BMand IRI subsidiary, ELSAG. PROMEDOSUD Workforce: 63 - Privatized in 1981. (4) ALFACAVI Workforce: 1,280 - Subsidiary of S11E,it was urivatized in 1981. (4) TERNOllECCANICA - Subsidiary of 1RI FINIIECCANICA,it was privatized in 1981. (4) FOND.nDNTORSO Workforce: 75 - Subsidiary of IR1 FINMECCANICA,it was privatized in 1981. (4) NAPOLGAS Workforce: 572 - SMEsubsidiary privatized in 1982. 14) UIBRA-CUSCINETTI Workforce: 160 - IRI FINMECCANICAsubsidiary privatized in 1983. (4) CBF Workforce: 65 - IRI FINBECCANICAsubsidiary privatized in 1983.(4) ITALSNACK Workforce: 197 - SOFINsubsidiary privatized in 1983. (41 SWEETMARK Workforce: 30 - SOFINsubsidiary privatized in 1983. (4) SAFOG Workforce: 169 - SOFINsubsidiary privatized in 1984. (4) DUCATI Workforce: 405 - IRI FINNECCANICAsubsidiary privatized in 1985. (4) ANSALDOMOTORI Workforce: 784 - IRI FINMECCANICAsubsidiary privatized in 1985. (4) SOFILE Workforce: 411 - SMEsubsidiary privatized in 1982. (4) ITRI6AS - IRI FINCANTIERIsubsidiary privatized in 1985. (4) SAIMP Workforce: 401 - STETsubsidiary privatized in 1986. (4) ACCIAIERIEDEL TIRRENO Workforce: 181 - IRI FINSIDERsubsidiary privatized in 1986. (4) RIVOIRA Oxygenand Gas Private sale. (4) NUI Employeebuy-out. /4) C06EA Steel Private sale. (4)

ENI GROUP: LANEROSSI Textile Private sale. Sale price : It. L 168-Owned by ENI, wassold to the 9ARZOTTOgroup. Purchaserwas required to makevarious undertakings on the future operations, employment,and managementof the enterprise. PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZEINDICATOR COMMENTS

SAIPEM Oil and6as Public offering/New Investment Proceeds:It. L 259B - Capital increase by successful sale issue on the bourse and the Eurosarket of 20l of government'sshare. IMEG Marsle Private sale. NCR Textile Private Sale. OTHER Textile CompaniesPrivate Sale, IMMOBILIAREMETANOPOLI Real Estate Private Sale.

NUOVOPISNONE IENI) EngineeringEqpt. Public offering. Proceeds: II 91.8B - ENI is to sell IEX of stake in PIGNONE,representing secondmajor recent act of partial privatization by ENI. EFlI 6ROUP:

TERMEDl RECOARO Private sale. (5) COLOIBANI-LUSUCO Private sale. 15) TNI-TRIMARIN Private sale. (5) ALCOT Private sale. (5) PANAFIN Private sale. (5) AGRIALCO Private sale. (5)

I1)Divestiture of SOEsin LDCs(op. cit.) 12) Financial Aspects of Privatisation of Public Enterorises: CaseStudy of Italy (58B6). (3)Privatization Worldwide- AdamSaith Institute f1986). (4!Italy CaseStudy (Volume11). (51 Privatization in Italy, The International Lawyer, 1988(F. Vigliano),

JAMAICA

- Jamaica's approachto privatization is to classify SOEsinto three w groups: Type A, which are clear candidates for divestiture in 3-5 years; Type B, which are strategic and will not be divested; and Type C for which there is no clear consensus, (1) - A special Secretariat has beenestablished within the NATIONAL INVESTMENTBANK of Jamaicato carry out valuation exercises and arrange for sale or lease of SOEs. 44 companieshave been listed and action has been taken on half of these, although these are not the mostsignificant enterprises. 6overnmentintends to transfer shares of SOEsto the NATIONALINVESTMENT BANK, which would hold shares in a subsidiary company. The Bankwould then offer shares to the public, thus effecting divestiture over a gradual period. - Furthermore, a tentative list of 47 enterprises to be divested has been compiled. If programis completed, 50Xof all public enterprises wouldhave been privatized by March, 1988.

PLANNED: NATIONALTOOL AND DIE Manufacturing Private sale. MERCHANTMARINE Shipping Private sale. - Companyowns two ships. PETROLEUMCOMPANY OF Petroleum Public offering. JAMAICA Marketino UNDERWAY:HIGHGATE FOODS, LTD. Food Private sale. ExpectedProceeds: - Sale was pendingCabinet decision. JS 0.7w (1987) BATHFOUNDATION HOTEL/ Hotels Lease. ExpectedRental: - Leaseis Pendingimproved offers through Hotel DivestimentCommittee. MILKRIVER BATH JS 0.2a (1988) Agreesentis anticipated after Marth 31, 1988. KINGSTONINDUSTRIAL Foundry Public offering. - Offering will take place after March31, 1988. WORKS,LTD. KIN65TONDRY DOCK Port Facilities Private sale. Proceeds: J$ le - Sale is pending authority to proceed. (1988) COMPLETED:JAMAICAN BROADCASTING Radio Broadcasting Lease/Sale of assets/ - Thelicense and ownership of one radio companyis to be sold, while COMPANY(JBC) Public offering. nationwide licensing is planned for others. Governsentwill continue PRIVATIZATIONTECHNIOUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

to operate somegovernment-controlled broadcasting companies. - Governmentwill also grant license for a commercial TV ooeration who will lease from it, TV transmitters. Public TV will resain sith the 6overnment. - A subsidiary of JBC, RADIOJAMAICA CORPORATION's 25Xstate ownership will be sold via public offering. No foreiqn ownership is being considered. - Although no final structure of the broadcast mediahas Yet beendeter- mined, in the longer ters, it is planned that the full TV service be leased to the private sector (3)with the 6overnmentexpected to retain a service for cultural and other programs. JAMAICAOMNIBUS SERVICE Bus Services Lease. - JOS still exists as a legal entity and retains someregulatory func- (JOS) tions, but it no longer operates buses. Primary routes were auctioned to private operators (1) who leased JOS buses. (4) N.C.B.GROUP LTD. Coesercial Bank Public offering. Amountof Offer: - Offer for 51X of the issued share capital. (GROUP) JS 90D (1986) - NCBwas incorporated under CompaniesAct. 26.7. ordinary shares at t2.95/sharewere offered to the public. (2) - 6ROUP'ssubsidiaries are: National CosmercialBank Ltd., National CommercialMortgage and Trust Ltd., West Indies Trust Co. Ltd., Carp Corp. Ltd., NCB(Investments) Ltd., and NCBData Co. Ltd. - Ordinary sharesnot included in offer for sale will not be elioible to be voted while they remain in government'shands. About 13Xof of shares are reserved under an EmployeeShare Scheme. (2) - Sharesto be acquired only by Jamaicans.(2) - Offering was2.7 times subscribed and 30,000 applications from ordinary Jamaicanswere received, (2) - Remaining49X to be sold subsequently. NATIONALHOTEL AND Hotels Lease/Private sale. Proceeds:J$ 49A - Governsentmanaged to turn over 6 of 14 hotels to private management PROPERTIES (for one hotel sold) in over a year, after which the privatization process slowed. (4) - Onehotel of 12 has beensold and twoare at an advancedstage of negotiation (7) with estimated proceedsof sale at Jt 32.5w. - Various factors explain the above: the world recession, poor condition of the properties and the terms under which properties are being sold (Government'semphasis on long-term leasing over purchase). (4) NATIONALSUGAR COMPANY Sugar Enterprises Managementcontract. Contract Cost: S 7.2w - As holding companyfor the public sugar industry, NSCnegotiated with (NSC) UK firm, TATEand LYLE(who formerly ran the industry) a ten year agreementin June, 1984 for the managementof the Froee, Monyouskand Bernard Lodgefactories and facilities. Theagreement calls for123 man-yearsof service in Jamaicabeginning October 1985. PORTAUTHORITY Ports Managementcontract. - Managementcontract of PORTAUTHORITY is being revised. CARIBBEANCEMENT COMPANY Cement Public offering. Proceeds:JN 140Q - Sale of 781 by public share offering. (1987) VERSAIR Catering Cospany Private sale. - In 1981,Government announced that a consortium of companieshad purchasedVERSAIR representing mix of local, regional and foreign capital: GRACE,KENNEDY AND COMPANY(Jamaica), GODDARDCOMPANY (Barbados),and MARRIOTCOMPANY (U.S.A.). (4) CORNWALLDAIRY DEVELOP- Dairy Products Lease. LeaseRental: JI 0.6. MENTCO., LTD. (1987) ZEROPROCESSING AND Cold Storage Private sale. Proceeds:JN 4w STORAGE,LTD. (1987) RURALICE ANDCOLD Cold Storage Private sale. Proceeds:JN V.5w STORAGE,LTD. (1987) HANOVERSPICES, LTD. Food Private sale. Proceeds: JS 0.1. (1987) JAMAICAOXYGEN AND ACETY- Chemicals Private sale. Proceeds:JN 2. LENE,LTD./JAMAICA (19B7) PRIVATIZATIONTECHNIQJES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIIE INDICATOR CDMMENTS

CARBONICS,LTD. JAMAICA6YPSUM AND Mining Private sale. Proceeds:JS 3a 9UARRIES,LTD. (1988) NATIONALHOTEL SUPPLIES, Trading Private sale. Proceeds:Js 2.3. LTD. (1987) WESTINDIES PULP AND Pulp and Paper Private sale. Proceeds:JS 3D.1e- Of the total proceeds, Governmentwill not derive anycash directly PAPER,LTD. (1988) from sale but will be relieved of debt repaymentstotalling JS 33.1m and willbe issued with convertible debenturesof JS 5. TRANS-JAMAICAAIRLINES, Airlines Private sale. Proceeds:JS 4. - Sold to foreign and local private investors. LTD. (1988) SERGEISLAND DAIRIES, Dairy Products Private sale. Proceeds:JS 1.98 LTD. (1987) JAMAICAFISHERIES, Fishing Lease. LeaseRentals: JS 0.3a LTD. (1980) HELLSHIREFISH FARM, Fishing Private sale/Lease. Proceedsand Lease: LTD. JS 0.3n 119871 BRAY'SINN PROPERTIES Tourist Lease. LeaseRentals: JS 0.4n (1987) COCOAINDUSTRY BOARD Marketing Board Private sale. COTTONPOLYESTER COMPANY Textile Hills Private sale. ARISUANABOMILLS Textile Hills Private sale. NATIONALCASSAVA Food Private sale. Proceeds:JS 2a PRODUCTS,LTD. (1988) PALISADOESBEACH COMPLEX Tourist Lease. LeaseRentals: JS .02a (1988) AGRICULTURALMECHANICAL Workshop Private sale. Proceeds:JS 7a SERVICES ( 1988)w FORTCLARENCE BEACH Tourism Lease. LeaseRentals: JS0.1s (1988) PORTANTONIO MARINA Tourism Lease. LeaseRentals: JS .041 (1987) JAMAICAFROZEN FOODS, Food Private sale. Proceeds:JS 9.5. LTD. (1988) MARTINS6ROUP/TRAVEL Tourism Private sale. Proceeds:JS 5.7. SERVICE (1988) BANANACOMPANY Boxing Plant Private sale. BANANAMARKETING COMPANY Marketing Fragmentation/Privatesale. - Theentire BananaMarketing Board has beenfrageented and seperate companiesare to be sold. Marketing would be put under joint venture with UNITEDBRANDS. JAMINTEL Telephoneand Private sale. Proceeds:JS 291.5m - Thetwo telephone cospanies in Jamaicaare JAMAICATELEPHONE CO. for Telecomunication (1987) domestic (941 state-owned)and JAMINTEL(51% state-owned and 49Xowned by CABLEand WIRELESS)for overseascommunications. - Sovernmentcreated a holding company(TELECOM COMPANY OF JAMAICA) with CABLEand WIRELESSowning 39X. CABLEand WIRELESSis to increase its capital investment in the newholding companyto increase ownership share to 51X. New issued capital is placed at JS 18. - For sale in the holding companyis a further 292 to CABLE.

(1)Divestiture in DevelopingCountries (op. cit.) (2) N.C.B. Group Ltd. 1986Offer for Sale/Prospecturs. (3) Internal sources (4) State Shrinking: A ComparativeInquiry into Privatization (W.Glade).

JAPAN

- Coemissionon Administrative Reformwhich sought to implement PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIIE INDICATOR CONMENTS

6overnment'sprivatization policy recommendedaerger/liquidation of sevenSOEs and privatization of 23 SOEs.(1) - Various measureshave beenplanned to rationalize public corporations. Corporations under the EconomicPlanning, Science and Technology,Environment and National Land Agencies, the Ministries of Foreign Affairs, Finance, Energy, Health and Welfare, Agriculture, Forestry and Fishes, International Trade and Industry, Transport, Post and Telecommunications,Labor, Construction, and HomeAffairs are to be restructured with someof its services reducedand transferred to the private sector. (Il

PLANNED: TEITORAPID TRANSIT SubwayOperator Capital: Y 5.8B - Scheduleand modalities for privatization havenot yet been AUTHORITY (1987) decided. UNDERWAY:JAPAN TOBACCO AND SALT Tobacco/Salt Fragmentation Revenues:Y 2,686B - Formationof a new private company,JAPAN TOBACCO, INC. IJTI). PUBLICCORP. (19B5) - Chanqeof status frompublic to private sector type of organization. JTI will remainunder Governmentjurisdiction. Operating plans mill be subject to approval by Ministry of Finance. JTI remains a monopoly on domestic leaf buying and processing but not on distribution of cigarettes. - 100Iof ownershipshares remain in the handsof 6overnmentwith no iinediate plans to sell to private sector. - Governmentis expected to retain two thirds holding of JTIeven alter privatization. - Reasonfor change of status was morepolitical than financial: foreign, particularly US companieswere urging Governmentto open up domesticcigarette market. OKINAWAELECTRIC POWER PowerCompany Private sale. Capital: Y 7.4B - lOOXstate owned. COMPANY (1987) - 6overnmenthas agreed to sell shares it holds after 1987. It was originally planned to be mergedinto KyushuElectric PowerCompany but as it eliminated its losses at end of 1906,Council has agreed to LO its privatization. J- COMPLETED:TOHOKU DISTRICT DEVELOP- Cement Private sale. Capital: Y 2.5B - Governmentsold all 3.tIshares as part of privatization efforts I MENTCOMPANY (1987) through competitive bidding in three stages in October, 1907. JAPANNATIONAL RAILWAYS Railways Fragmentation/Publicoffering/ Loss: Y 1,050B - JNRhas beendivided into six separate operating companiesand ons (JNRI Lease. (1905) freight company,major part of which has beensold to private sector. - Sharesof JNRare not to be sold to the public unless profits are made. - JNR'ssix operating companieswere split: I each forHokkaido, Shikoku and Kyushuand three for northern, central and southern regions of Honshu,the largest island. Since three Honshunetworks are expectedto be profitable, eachwill be asked to assumesome of JNR's debts. Since networkson other islands will operate at a loss, they are to be supportedby interest from a special fund. High-speedShin- kansenlines are to be leased to three companiesoperating on Honshu. Operationsof these companieshave started in April, 1907. NIPPONTELEGRAPH AND Telegraphand Fragmentation/Publicoffering. Revenues:Y 5,100B - Fragmentationhas beencompleted, public offering is still underway. TELEPHONE(NTT) Telephone (1985) - 6overnmentstill owns75X of shares. - NTTis now a private companyin legal terms.Government has created twokinds of companywhich can provide telecommunicationservices. Class I carriers INTT) own their owncircuit but not Class 2. - NTTis being converted by stages into a joint stock companywhose shares will eventually be quoted at TokyoStock Exchange. Government mill remainmajor shareholder even after privatisation, holding a third of NTT'sshares after flotation. It is expected to sell half its stake over five years. Foreigners will not be able to bid but ruling maybe amendedsoon. Further tranche would be floated in 1900. PRIVATIZATIONTECHNIOUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZEINDICATOR COMMENTS

- Thoughstill state-owned, its employeeshave the right to Strike and negotiate wages. - Since April 1985,it has gone into joint venture with IBI Japanin value addednetwor6 (VAN)services. JAPANAIR LINES Airlines Public offering. Revenues:Y 824.9B - Offering of 35%state's stake took place in December,1987. (JALI (1986) ELECTRICPOWER DEVELOP- Power Cospany Private sale. Capital: Y 70.6B - Governmentsold part of its 72Xshare to private electric companies MENTCOMPANY in February, 19B7. i1)Privatization (ADDConference).

JORDAN

PLANNED: ALIA, THEROYAL Industrial Holding Fragmentation/Publicoffering. Profitz JD 1D8m ownswholly or partly various subsidiaries which include: travel JORDANIANAIRLINE Company (1985) agency, airport hotel Aamanduty-free shops, an aviation training center, an aircraft maintenancefacility, an air cargo company,an air taxi charter service, air acrobatics team, a boutique, an airline consultancy firm and the Royal Jordanian Airline. - Underthe corporate reorganization plan, the Royal Jordanian will be spun off and privatized under the new nameROYAL JORDANIAN. - Governmentplans to sell its sharesgradually to private investors in the next fewyears. By the end of the year it plans to sell 301 of its shares to the public and 10 to employees. The next year another 20-30Qwill be sold to Jordanian and other Arab investors with governmentmaintaining 10-5I and the balance being offered to International investors. - ALIA is negotiating with several international cospanies to sell them and then lease back its fleet of 8 LockheedL 1011Tristars and 3 tn Boeing 727 aircraft. JORDANTELECONNUNICATIONS Telecowmunications Public offering. - Options for restructuring TCCentail setting up of TcEas a share CORPORATION(TCC) corporation (mioththe help of consultants, British Telconsult). 1000state owned, full privatization is foreseen but with a government right to veto certain types of decisions. PUBLICTRANSPORT CORP. Public Transport - 6overnment's objective in privatizing PTCinclude: exploit fully the (PTC) resources of privately-owned and commercially motivated operation, surrender one direct operating interest in public transport because involvesent in PTCinhibits effort to organize and bring effective control to the whole public transport sector, create impartial expertise In the demandfor public transpDrt and satisfy these demands,and end subsidization. - 6overnmentfelt it could not effectively use its investment in an exemiplarymanner and should withdraw fromcompetition in the public transport sector. PORTOF AGABA Port

KENYA

- In June, 183 a Task Force on Divestiture wascreated supervised by the Parastatal Advisory Committee. The Task Force drafted a newState Corporation Act to authorize the divestiture process, but Act wasnot submitted to Parliament. Since creation of the TaskForce, three SOEs havegone up for sale, but it is not clear whether they had direct linkages to the TaskForce. - Intended privatization had no effect so far. 6overnment'sultimate objective is less privatization than indigenisation of companies controlled by foreigners and local Asians and Europeans. PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

UNDERWAY:UPLANDS BACON FACTORY MeatProcessing Private sale. - UBFhas debts due to high operating expenses. Divestiture was (UBF) confirmed by govt. UBFwas advertised for sale in EECas one of investment opportunities available in Kenya. So far there has been no results with offers renortedly being rejected by government. COMPLETED: N/A Textile and Sugar Managesentcontract. KENYAMEAT CONMISSION neat Commission Managementcontract. - 6overnmenthas engagedexpatriate managementunder contract to restore profitability of the Commission.(1) - Takenover by the AGRICULTURALDEVELOPlPENT CORPORATION which will havea 40% share, and a group of livestock cooperative societies wihichwill own the remaining 601 share. Thecompany is renamedKENYA NEATCORPORATION.

(I) Public Enterprise Demandfor Management in Sub-SaharanAfrica - IFC (1986).

KOREA,REPUBLIC OF

- In 1980,6overnment adopted view that economiccentralization should be reduced through greater reliance on market mechanisms,In line with this, privatization of SOEbecame a major concern and SOEs wereclassified according to government'srationale forits ownership. SOEswere classified under basic motives (natural monopolies), developmentalmotives (where privatization is not necessary and can be decided on case by case basis), powerand control sotives (as in commercialbanks whereprivatization is required). (1) - To adopt a basic policy for the privatization of SOEs,the Public Enterprise Privatization Committeewas set up in April, 1987. It has I chosen11 SOEsfor total or partial divestiture and sevenothers for realignment of their functions. ON PLANNED: KOREAEXCHANGE BANK ConmercialBank Public offering/Private sale. NetworthzS 983.9m- To be privatized by end of 1989 for the samereason as the Korea (1987) Stock Exchange.It is to be privatized of Government's3% share. Also subject to disposal are S 520w(9BX) worth of KEBshares held by Bank of Korea. KOREANELECTRIC POWER PowerCompany Public offering. Networth: S 4.0B - KEPCOwill only be partially privatized (3MI) becauseof its import- COMPANY(KEPCO) (1987) ance to the national economy. Governmentwill keep control of resain- ing 7QXfor a considerable period. KOREANTELECOMMUNICATIONS Telecommunication Public offering. Networth: $ 2.6B - To be privatized up to 49%only due to importance to the national eco- AUTHORITY(KTA) (1987) nomy.Government will keepcontrol of remaining 51X forconsiderable period. NATIONALTEXTBOOK COMPANY Textbook Supply Public offering/Private sale. Networth: N 22.9s - Governeent's50% share to be fully privatized. 1987) KOREAAPPRAISAL BOARD GovernmentAgency Public offering/Private sale. Networth: N 9.6m - 6overnment's50% share to be fully privatized. (1987) KOREATECHNOLOY DEVELOP- Research and Public offering/Private sale. Networth: S 48.4w - 6overnment's25% share to be fully privatized. MENTCORPORATION Development (1987) KOREAMONOPOLY CORP. 6overnmentAgency Public offering. Networth: $ 2.1B - To be partially privatized up to 49X of Government'sIOOX share. (19B7) INDUSTRIALBANK OF KOREACoamercial Bank Public offering. Networth: S 32B.6n - To be partially privatized up to 49% of Government's1007 share. (SMALLAND MEDIUM (19B7) INDUSTRYBANK) CITIZENSNATIONAL BANK CommercialBank Public offeringlPrivate sale. Networth: S 144.3e- To be partially privatized up to 22% of Government's73% share. (1987) COMPLETED:Several comuercialbanks CommercialBanks Private sale/Joint venture. - Between19B2-83, Government divested itself of all nationwide commercialbanks. To prevent ownershipcontrol by single group, restrictions were placed on maximusequity holding and votings rights. PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

Twonew joint venture bankshave been authorized and established in 1982. 11) KOREAOIL COMPANY Oil Company Private sale. - Sold to SUNKYONGGROUP in 1982. KOREAHEAVY INDUSTRY HeavyIndustry Private sale. (1) KOREANAIR LINES Airline Private sale. - Sold to HANJINGROUP in 1980. DAE-WOOHEAVY INDUSTRIES Heavy Industry KOREASTOCK EXCHANGE Stock Exchange Public offering/Private sale Networth: S 27.1. - Selected furprivatization becauseits original objectives have been (1987) already fulfilled, becauseit has lost itsreason to remainas an SOE as a result of changesin the economicenvironsent and becauseits business competesdirectly with the private sector. It is to be fully privatized of its 68X governmentshare by end of 1989. POHANGIRON AND STEEL Iron and Steel Public oftering. Networth: $ 2.1B - To be privatized up to 13Xonly due to importanceto the national eco- COMPANY(POSED) 11987) nomy. Governmentwill keencontrol of its remaining 30Xshare for consideraole period. Also subject to disposal are $ 128nof POSED shares held by Korea DevelopmentBank. - Throughpartial divestiture, $ 206mworth of stocks of the Government and the KoreanDevelopment Bank will be sold, distributed amongits employees,lower incomegroup and the general public on a 20:75:5 ratio.

(1)ADB Conference Paner (1/R5y.

LIBERIA

- Objective of privatization of SOEsis to improve their operational efficiency and productive competence,as well as reduce their depend- ence upongovernment subsidy. - Governmenthas established a nine-memberprivatization commission. Bureauof State Enterprise is the Secretariat of the comoissionand shall receive all applications frominterested parties. - In cases whereprivatization is not feasible, Governeenthas established institutional arrangementsto oversee managementof these enterprises.

PLANNED: MONROVIATRANSIT Public Transport - Full privatization is planned. AUTHORITY AIR LIBERIA Airline Private sale. - Full privatization is planned. HOTELAFRICA Hotel Private sale. - Full privatization is planned. DUCORPALACE HOTEL Hotel Private sale. - Full privatization us planned. LIBERIANELECTRICITY Electricity - Partial privatization is planned. CORPORATION HATERAND SEWER CORP. Utilities - Partial privatization is planned, TELECOMMUNICATIONSCORP.Telecommunication - Partial privatization is planned. NATIONALPORT AUTHORITY Port - Partial privatization is planned. LIBERIAPRODUCE MARKET- Produce Marketing Private sale. - Partial privatization is planned. INGCORPORATION MESURADOGROUP OF Private sale. - Partial privatization is planned. COMPANIES UNDERWAY:LIBERIAN PETROLEUM PetroleumRefining Private sale/Joint venture/ Sale price: 9e - Contract signed with LINKOILINTERNATIONAL INC. (UScompany based REFININGCOMPANY Managenentcontract. 1987) in Dallas) in September1987. - LINKOILwill take over managementand operation of the companyon a joint venture basis; Liberian Governmentholds a 40X stake and LINKOIL60X. Thenew operation will be knownas LIBERIA-LINKOIL JOINTVENTURE CORPORATION. COMPLETED:NATIONAL IRON ORE Mining Managementcontract - A Managementand Technical Services Agreementequivalent to a Manage- COMPANY,LTD. ment Contract wan signed withMET-CHEM CANADA, INC. in 1982. 1) PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

LIBERIANIRON AND STEEL Iron and Steel Managementcontract. - Contract awardedto a Japaneseconsortia, AMAXLIBERIA CORP. (1) CORPORATION

(1)Managesent Contracts (op. cit.)

MALAWI

UNDERWAY: - Several SOEsin agro industry, textiles sector reportedly being processed. MALAWIDEVELOPMENT Holding Company Fragmentation. - Share swappingand sale of subsidiaries. CORPORATION COMPLETED:AIR MALAWI Airlines Managementcontract.

MALAYSIA

PLANNED: KERETAPITANAH MELAYU Railways Private sale. Sale Price: Mn lOi - 6overnaentis preparedto parcel out parts of network for private sector. - So farno private buyer has indicated any serious interest. SELANGORWATER Utility - Distribution will remain under governmentof Selangor. PRODUCTIONFACILITIES - Privatization is delayed. CARGOPORT OF PENANG Port Facilities PETRONAS Oil Company - Partial privati:ation being considered. (2) HICOM HeavyIndustries NATIONALELECTRICITY Electric Power BOARD PERMADOLANBUMIPUTRA InvestmentCompany SABAH SABAHRUBBER FUND BOARD Rubber Board SABAHLAND DEVELOPMENT Land Board I BOARD SARBAHPLANTATIONS Estate Managementcontract. - Governmentis considering putting up 6 palm oil mills under private management. KORPORASIPEMBAN6UNAN Rural Development DESI Corporation NIPPONPAINT (SABAH) Paints Private sale. - Companyis 51% ownedby publicly-owned SABAHECONOMIC DEVELOPMENT CORPORATION(SEDCO). SABAHFLOUR MILLS Flour and Feed Private sale. - Companyis 44Uowned by publicly-owned SEDCO. n.a. Tiles Private sale. Sale Price: MH 27m - Govt.intends to sell 49% portion of its joint venture share with US INTERKILNCORPORATION. CEMENTMANUFACTURERS Cement Private sale. - Governmentto go on S0-50 joint venture. SARAlWAK TOWNAND HOUSING DEVELOP- Housing Authority Private sale. - Governmentto go on 50-50 joint venture. MENTAUTHORITY SABAHURBAN DEVELOPMENT Private sale, - Governmentto go on 50-50 joint venture. CORPORATION SABAHGAS MELAKAPORT Port Facilities SECURITYPRINTING DEPT. Printing Office NORTH-SOUTHEXPRESS ROAD Highways Private sale. - Construction and operation of the remaining portions of the road by a private consortiumhas been criticized by the majoropposition party, which has engagedlitigation for the proposedaward of the contract to an.UMNO-engineering firs. Partly as a result of this, privatization proposal has becomeincreasingly unattractive to local fire's overseas partners, UNDERWAY:PORT PENANG Container Terminal Sale Price: Mn 350w - North container terminal at Butterworth to be sold. JABATANTELEKOU NE6ARA Telephone,Telex Public offerincg Assets: N MS6.2B - A transfer of staff, assets and liabilities of JTN to a new public PRIVATIZATIONTECHNIOUES COUNTRY ENTERPRISE ACTIVITY METHODIPROCEDURE SIZE INDICATOR COMMENTS

(JTN) and communication linited companyis underway. facilities - Employeesnew status maycause someproblems. Governmentthinks of funnelinQ part of equity to a 'DBuiputra TelecossTrust'. - Privatisation of JTN involved several stages: formation of a wholly- ownedgovernment cospany to take over JTN's assets with divestiture to the public likely to take place after a five year period of track record. 6overnwentwill seek control of equity distribution so that no single interest will hold majority. - Various issues involved in privatising JTN: valuation of JTN's assets, change in its financial accounting systess, future status of its 28,000 workers, subsidies and telephonecharges. - First phaseof privatization consisted of the creation in 1986of a new company,SYARIKAT TELECOM MALAYSIA, a wholly ownedgovernment companywhich will receive a license to run the telecommunications network. Thenext step is to offer shares to the private sector. (5) - Reasonfor privatizing is not only to reduce public sector burdenbut also avoid having the telecommunicationsystem be overtaken by private telecommunicationsattelite development. COMPLETED.MALAYSIAN INTL. SHIPPINSShipping Public offering. (4) - SeeVolume 11 for details. CORPORATION(MISC) PORTVELAN6 CONTAINER Container Services Fragmentation/Privatesale/ Sale Price: MS 700m - See Volume11 for details. SERVICESIPK) Lease. (4' MALAYSIANAIRLINE SYSTEM Airline Public offering. (4) Profit: $ 44.8e - See Volume11 for details. (MASI (19851 [GENERALHOSPITAL) Hospital Private sale. - Sold to a consortiumof private doctors. AEROSPACEINDUSTRIAL Aircraft Mainte- Private sale/Joint venture/ - AIM'sthree partners are: the government,MAS and United Motor Works, MALAYSIA(AIM)/ nanceand Repair Managementcontract. a public engineering group. The privatization schemecalled for the RMAFAIRCRAFT OVER- formation of a partly private company,51X to be ownedby AIM and HAULINGDEPOT 4YXby LOCKHEEDSERVICES INTERNATIONAL. - Agreementalso called for a contract managementwith the Americanfirm who will also maintain planes of the MalaysianAirforce. NORTHKELANG STRAITS Private Toll Road Private sale (1)/Management - Roadbetween Port Kelang. Toll charges were introduced for users BYPASS contract. and is operated, managedand maintained by SHAPADUSDN OHD., a private company.13) K.L. KEPON6INTERCHANGE Private Toll Road Managementcontract. - Newroad developedby a private contractor who has beengiven the right to collect toll. SPORTSTOTD Lottery Private sale. - Divested to the private sector. RECREATIONALFACILITIES Park Facilities Lease. AT THENATIONAL PARK LARBUANWATER SUPPLY Water Supply Managementcontract. - Construction and operation of the municipal water supplY sYstemat Labuangiven to a private contractor.

(!) Divestiture of SOEsin LDCs(op. cit.) (2) Privatization Worldwide- AdamSmith Institute (1986). (3) Privatization - Methods,Policies and Procedures(ADBO. (4) Halaysia CaseStudy (Volume11).

MALI

PLANNED: SEPOM VegetableOil Private sale. - Already a joint venture with private shareholders. It has beenmerged with HUICOMAas a first step in its rationalization. (2) SENA Equipment Private sale/Joint venture. Sales: CFAF86a - Already a joint venture with private shareholders. (2) EMAMA MaintenanceCo. Private sale/Joint venture. Sales: CFAF18r - Already a joint venture with private shareholders. (2) MALIANTEXTILE COMPANY Textiles Private sale/Joint venture. Sales: CFAF2.7B - Diagnostic studies to be completedbefore governmentdecision. ( COMATEX) SOCIMA Cement Workforce: 426 (1984) - Diagnostic studies to be completedbefore governmentdecision. (2) PRIVATIlATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

SEPAMA Groundnut Sales; CFAF2.9P - Diagnostic studies to be completedbefore governmentdecision. 2) - A joint venture with HOBUJAFRIKA (W. Germany). (2) UNDERWAY: SOMIEX Tradinq Private sale. Sales: CFAF41.2B - Retail outlets weresold to private entreprenuers and sonopolies on imports and trade were reducedfrom seven to three items.(2) COMPLETED:TEXTILE INDUSTRY OF MALI Textiles Private sale/Joint Profits: $350,000i - Previous joint venture. It is now further privatized with Malian (ITEMA) venture. (1) (1902) shareholders.

AIR MALI Airline Lease. Sales; CFAF3.5B - Governsentdissolved AIRMALI and leased route to other airlines. Airplane leased to Argentina and currently asking for bids for local and regional routes via joint venture with private partners. GRANDHOTEL Hotel Managementcontract. Sales: CFAF443a - In 1903government contracted the services of SOCIETED'AMENA6EMENT TOURISTIOUEINTERNATIONALE (SODATI) under a five year management contact in return for annual paymentsof 3Y of sales revenue. (2! MALIANTANNING COMPANY Tannery Private sale/Management Sales: CFAF70a - Governmentreached agreement with a Chinese companyin 1984 for (IA1ALI) Contract, managementin exchangefor a guaranteedoff-take of hides. (2)

UCEMA Ceramics Managementcontract

1) Divestiture in DevelopingCountries lop.cit.) 12) Public Enterprise Demandfor Managementin Sub-SaharanAfrica - IFC (6186).

MAURITANIA

UNDERWAY:SNTH Hotel Sale of assets/Liquidation. (2) SNC Textiles Sale of assets/Liquidation. (2) M'POURIESTATE FARM State Farm Private sale. - Being sold to peasantorganizations over a five year period starting in 1985. (31 COMPLETED:ONC Cinema Private sale. Soldin 1984.(3) na. Food/Sugar Managementcontract - Contract with LANGEN61NEERING (U.S.A.) since 1973. (1) PROJECTSUCRE Sugar Sale of assets. - Refining unit closed and processing plants are to be privatized. (2)

PHARMARIM Pharmaceutical Liquidation/Sale of assets/ distribution. Employeebuy out.

SOMIR Petroleumrefinery Sale of assets - Joint venture with Algerian private interests with domestic marketing arrangements.

11) ManagementContracts (op.cit.) (2) Divestiture in DevelopingCountries (op. cit.)

MEDICO

- TheMexican Government has announcedthat it intends to reduce the numberof its parastatals from 1,155 in December1982 to 200 by the end of 1988. So far, the nueberapparently hasbeen reducedto between600 and 700. Not all have been privatized; the methodsof reduction have included selling them, closing them, mergingthem and transferring thee to state and local governments. - Not included in the list are small SOEsincluding shipyard and sugar refineries acquired by Mexicanprivate investors.

PLANNED: CONASUPO Staple Foods FERTIMEX Fertilizer SICARTSA Steel Works PIPSA Newsprint PRIVATIZATIONTECHNIOUES COUNTRY ENTERPRiSE ACTIVITY METHOD!PROCEDURE SIZE INDICATOR COMMENTS

60B: for bids UNDERWAY:NEXICANA DE AVIACION Airline Private sale. - Governmrentis to sell its na)or.tv stake of the deadline wasJune 30, 1987, DIESELNACIONAL Truck Mailng Private sale. - Sale of controlling interest to CHRYSLERand NAVISTARauthorized. SIDERMEX Steel Private sale. - Japan's KOBESTEEL acquiring control of this joint venture in which it had been the Sovernrent's minority partner. PRESIDENTEHOTEL Hotel Chain Private sale. - Progress of sale of this flaoship of governaent's tourism interests hasbeen slow. AEROMEXICO Airline Sale of assets. - AEROMEXICO'suneconomic routes are to be cancelled and 28 jets are to be Put up for sale. In April 1988,its employees went on strike and wereterminated. Three days later the Government declared AEROMEXICObankrupt. for and 17Xfor CODPLETED:BANCO NACIONAL DE MEXICOCommercial Bank Public offering/Private sale. Proceeds: S 40m - 341 was sold in February 1987,12X reserved employees (BANAMEX! 11987) a select list of major banks customers. BANCODE COMERCIG CommercialBank Public offering/Private sale, Proceeds: $ 39m - 231 stake was sold in February 1987. (BANCOMERI (1987) BANCASERFIN Commercialbank Public offeringqPrivate sale, Proceeds: S 25.4m - 340stake was sold un March 1987 alaost solely amongemployees and 19YB7) clients. NACIONALHOTELERA Hotel Chain Private sale. Sale Price: Mr 27.28 - Chain sold in October 1985 (i)to a private Mexican investment group backed by two state banks as minority partners. 12) RENAULTDE nEXICO Car Manufacture Private sale. - Sold to RENAULTof France. l1) VEHICULOSDEAUTDMDTIVOS Car Manufacture Private sale. - Sold to RENAULTof France. Il) MEXICANES TELEPHONECOMPANY OF Telephone - Privatized in March 1984.(2) MEXICO GARCI-CRESPO Soft Drinks n.a. Bicycle Factory 4. CDMPANIAMINERA DE Copper Private sale, - Sale of a majority stake to 6RUPOPROTExA via debt equity swap. PRO- CANANEA TEXAbought $ 910a of government foreign debt at a discount on the secondary marketat a cost of about S 450m. It then used the $ 9'iOc asset it owned to buy CANANEA,Mexico's biggest and one of the 10( largest copper mines. Purchaser obtained commercial bank financing fo its investment.

(l) Some Recent Experience with Privatization (IMF), (2) Privatization Worldwide- AdamSmith Institute (1986).

MOROCCO

- N.M.Hassan II's address of April 8, 1988to Legislature announces proposals for future orivatizations; a negative list will indicate sectors not to be divested.

OFFICE COMPLETED:Several Hotels Hotels Lease/Managementcontract. - Managementof several hotels belonging to the MOROCCANTOURIST were awarded to professionals of Moroccanhotel trade. SONAMER Fisheries Private sale. - Subsidiary of ONP. ASMAK Fisheries Private sale, - Subsidiary of ONP. INTERPORT Fisheries Private sale. - Subsidiary of ONP. NATIONALFISHERIES Fisheries Lease. - Boats belonging to ONP subsidiary THONAPECHEwere leased to a Spanish OFFICE(ONP) company; two other boats were leased to private Moroccanconcerns. BENIMELLAL SUGAR COMPANY Sugar Private sale. - Beet producers participated in capital. NATIONALSUGAR COMPANY Sugar Private sale. - Beet producers participated in capital. OF BEHT SUGARCOMPANY OF DOUKNALA Sugar Private sale. - Beet producers and other investors participated in capital. COSUMAR Sugar Private sale. SOCIETENOUVELLE DES Civil Works Private sale. CONDUlTESD'EAU (SNEE) PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

na. UrbanTransport

MOZAMBIQUE

UNDERWAY: n.a. Agricultural Lease/Concessionarrangement/ Project Cost: $ 16.- Privatization of several failed estates by rehabilitating fares under Estates Private sale/Joint venture. newstructure and managesentwith financing from IFC. - Takenover by LOMACO,a new joint venture company,majority-owned by LONRHO(multinational company)and minority Governmentownership to growcotton, vegetable and maize for the local market. - Thegranting of fares to LOMACOwas under a concessionagreement; Governmentcontributed the land valued at $ 3.5 to the project.

NEPAL

PLANNED: ROYALNEPAL AIR Airline - Plin to sell off 20Xof sharcs of airline after changing its legal framework. BALAJUTEXTILE Textile Private sale. - Plan to sell off 100I. HETUNDALEATHER Leather Private sale. - Plan to sell off 100I. HIMALCEMENT Cement Private sale. - 49Xof HIMALto be sold with a 61 cap on individual share purchase. NEPALTEA DEVELOPMENT Tea Production Private sale. - 49Xof NTDCto be sold with a 6X cap on individual share purchase CORPORATION(NTDC) and Distribution after breaking up NTDCinto four smaller firms. HERRISIDIHBRICK AND Tiles Private sale. - 49Xof the companyto be sold. TILE FACTORY

NETHERLANDS I

PLANNED: H00G0VENS Steel Public offering. Proceeds:Dfi. 10.8 - In 1987Government retained 142of the shares, nominal worth Dfl E. 11985) 54 million. Moreshares are considered to be sold. Private sale. Sales: Dfl 164 (1986) VREDESTEIN Car Tires Private sale. Sales: Dfl. 43.B(1986)- State still owns491 of the shares. Moreshares are considered to be sold. STAATSDRUKKERIJEN State Printing - 6overnmentdepartment to be transformed in enterprise with UIT6EVERIJ government'snarticipation. PTT Postal and Tele- - Governmentdepartment to be transformed in enterprise with communicationsery. government'sparticipation. RIJKSINKOOPBUREAU (RID) ProcurementAgent - Governmentdepartment to be transformed in enterprise with povernment'sparticipation. DUTCHSTATE MINES (DSM) Chemicals - Fully ownedby State, nominal worth end 1987Dfl. 700 million. Decision for sale of shares is under consideration. SCHIPHOLAIRPORT - In study for privatization or sale of (part of) governmentholdings. EUROMETAAL - In study for privatization or sale of (part of) governmentholdings. SUBSIDIARIESOFDUTCH - In study for privatization or sale of (part of) governmentholdings. RAILWAY VUILAFVOERMAATSCHAPPIJ - In study for privatization or sale of (part of) governmentholdings. (VAM) POSTRANK - In study for privatization or sale of (part of) governmentholdings.

COMPLETED:KLM Airline Private Sale, Sales: Dfl.77.7(1983)- Last issue reducedgovernment holdings from 55 to 39X. In March Public Offering. Proceeds:Dfl. 154.7 1986,12 million new shareswere offered. Governmentretained (1986) positions in supervisory Board and has an option to buy back 18 million preferential shares. GERD Cutlery Private Sale. Sales: Dfl. 5.624 - Governmentowned originally 76t. (1986) STICHTINGINDUSTRIEEL Financial Trust Private Sale. Sales in 1987 6ARANTIEFONDS Proceedsnot published PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PRZCEDURE SIZE INDICATOR COMhENTS

NIB Bank Public Offering, Floalproceeds not yet available. - Governmentholdinqs gradually reducedfrom 35X to 7X,

(I)ABN Economic Review. (2)Offering Prospectusof 1986.

NEW ZEALAND

PLANNED: NEW ZEALANDAIRPORTS Airports Franmentation - Privatization arrangementwhich will replace present systemof joint venture betweenlocal bodies and government,will begin with the creation of limited liability companies. UNDERWAY:AIR NEWZEALAND Airline Public offering - Governmentwants to sell 25X7of the group. DEVELOPMtENTFINANCE Financ;al group Public offering. - 6vernment wants to sell 20X4of the group. CORPORATION COMPLETED:BANK OF NEW ZEALAND Bank Private sale. - 13.of equitywas sold to private investors in earlylY97, - Governmentreduced its role in the Bank by forcing ;t to resort to the private sector for a capital injection. PETROLEUMCORPORATION Oil Company Public offering/Private sale. - Governmentplans to reduce its stake to 41X. 157have already been OF NEW ZEALAND sold to a private investor and 15Xto the public. (PETROCORP) - Governmenthas agreed to sell remaining shares to BRITISHGAS. NEW ZEALANDSTEEL Steel Private sale. - Total private sale by tender. It was sold to a privateNew Zealand firm,EQUITY CORPORATION,

NIGER .

- 6overnmenthas formally decioed to maintain only 25 SOEsand to privatize partially or fully 22 SOEand to liquidate any of latter for which divestiture proves impossible. Governeenthas preparedaction programsthat defines specific steps and timetable forimplementation of rehabilitation, privatization, and liquidation programsfor individual SOEs.(3) - Privatization of selected SOEsstarted in January, 1985.(3)

PLANNED: VETOPHAR(PROJECT DE Veterinary Drug Private sale. Net Loss: FCFA18 - Evaluation teamsuggested informally that private ownermight be found PHARMACIEVETERINAIRE) Distribution (1983) only if firm is restructured. Full privatization is planned. (I) - Governmentintends to integrate operations with Ministry of Animal Resourcesor mergewith a new EPIC. SONOCI(SOC. NIGERIENNE Construction Private sale, Net Income:FCFA 4w - To be sold partially to a semi-public buyer, LEYMA(insurance company) D'URB4NISMEET DE (1983) or to private parties. CONSTRUCTIONIMO1ILIERE) SONIEN(SOC. 416ERIENNE Solar Energy Private sale. - Consultants recoreendedjoint venture with Nigerian government,turn- POURLES ENERGIES ing over managementto private handsor privatisation of ownershin but Nouvellesl with no results to date. UAR (USINED'ALIMENTS Animal Feed Private sale. Workforce: 40 DURETAIL) (1982) SNC(SOC. N16ERIENNE Cement Private sale, Net Loss: FCFA470a DE CIMENTERIE) (1903) - Partial privatization is Planned. (1 - ID has recommendedliQuidation since SNCis not viable even if restructured. SNT(SOC. NATIONALE DE TV Installation/ Private sale. Net Profit: FCFA7e - Full privatization possible only if buyers receive guaranty of payment TELEVISION) Repair (1903) (via contract or subsidy) for public service fund. LABOCEL AIR NIGER Airline Managesentcontract/Sale of Net Loss: FCFA324h - Stoppedoperations in early 1985 to May 1986, whenit reopenedscaled- PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

assets. !1983) downoperations under a ManagementContract. - Government to decide on a viable long-term solution, including liquidation as a condition for IDA tranched loan. CNCA(CAISSE NATIONALE Agriculture Credit Sale of assets. Net Profit: FCFA259m DECREDIT AGRICOLE) (19B3) UNDERWAY:UNCC (UNION NATIONALE DE FinanceCompany Sale of assets. COOPERATIONET DE CREDIT) SONIFAME(SOCIETE NIGER- Metals Sale of assets. (41 IENNEDE FABRICATION METALLIQUE) SICONIGER(SCC. INDUST- GroundnutOil Private sale. Net Income:FCFA 2; - Currently under majority private ownership. In 0983,SICONI5ER became RIELLEEl COMMERCIALE) 11983) lindigenized mith 31X of govt. stocks sold to Nigeriens. - IOOXstate divestiture is underway.(41 CENTRALEAPPROVISION Input Supply Private sale. - Full privatization is underwayeither viasale or liquidation. SNTN(SOC. NATIONALE DE UrbanTransport Private sale. Net Profit: FCFA425m - 6overnmentintends to seek foreigninvestors after giving priority to TRANSPORTDU N16ER) (1983) nationals. Partial privatization is underway. - Largest enterprise on the government'sprivatization list. (4) OLANI(OFFICE DU LAIT Milk Processing Private sale. Net Income:FCFA 37i - Outsiders are urging full privatisation while governmentwants partial DOUNIGERI (1963) privatization. SONARA(COMMERCIALISA- Groundnut/Niebe Private sale. Net Income:FCFA 67w - Governmentintends a partial privatization and to seek foreign TIONDE L'ARACHIDE) MarketinglReal (19B3) investors after giving priority to nationals. Estate. SONICERAM(SOC. NIGER- Bricks Private sale. Net Loss: FEFAlBOm - options openedto the Governmentare outright sale or leasing. Firm IENNEDE CERAMIQUE) (1983) is not functioning. SONERAN(SOCIETE NATIO- AnimalResearch - Full privatization is underway. NALED'EXPLOITATION ET RECHERCHESANIMALE) 4 SONIPRIM Sale of assets. (41 COMPLETED:CMAN (CENTRE DES METIERS Arts and Crafts Private sale. Net Loss: FCFA30a - Transformedinto a cooperative. D'ARTDU MIGERI (19031 - As of September1986, ChANwas fully privatized via sale to UNC(Union Nationale des Cooperatives). SOPAC(SOC. BE PAPEIRS Paper Private sale. Net Loss:FCFA 65m - Existing partners bought out SOPAC. ET CAHIERA) (1983) SONIDEP(DISTRIBUTION PetroleumDistri- Fragmentation/Privatesale/ Net Profit: FEFA709m - Soaeof the gas stations leased to private operators have been sold. DESPRODUITS bution Lease/Managementcontract. (1831 - Distribution armhas beenspun-off & fully orivatised. PETROLIERS) - SONIDEPperforms three functions: procuresent, distribution and storage of reserves of petroleum. Procurementfunction has been liberali- zed allowing traders to procure oil products, retailing was privatized in 19B6throuqh leasinq and the governmenthas expresseda desire to sign a managementcontract for its storage of supply function. (4) SOTRAMIL Millet Processing Private sale. Net Loss:FCFA 36m - Thenoodlesibiscuit operation were sold to private parties. (1) (1983) - As of September1986, SOTRAMIL has been fully privatised. SONITEXTIL(SOC. NIGER- Textiles Private sale. Net Profit: FCFA520m - As of December1986 governaent's minority shareholding (39X) have been IENNEDE TEXTILES) (1983) bought by partners. (1) - SONITEOTILhas beenpartially privatised as of September1986. LEYMA Insurance Private sale/Joint venture Net Profit: FCFA139. - Acquired by joint venture of DEvELOPMENTBANK OF NIGERIA and Nigerien (19B3) interests. LEYMAwas partly privatised as of Septewber1986. RINI (RIZ DUNIGER) Rice Milling Private sale. Net Loss: FCFAl50a - Spuninto twocompanies: operating (facility holding company)and (1983) managementwith effect of retaining ownershipof three rice mills to governmentbut marketing to be placed in private hands. - RINIwas partially privatised as of September1986. NITRA(NIGER TRANSIT) Freight ForwardingPrivate sale. Net Lossn FCFA2Qnm - Sale of re;aining government'sTOX share to existing Nigerien (1983) partners. NITRAwas fully privatised as of September1986. SNCP(SOC. NATIONALE DES Hides and Skins Private sale, Net Loss: FCFA120r - Sold to private sauority partners. Private party wanteda sonopoly CUIRSET PEAUY) (1983) but governmentrejected it. (1) 100%state divestiture. (4) PRIVATIZATITONTECHNIQUES SIIE INDICATODR COMMENTS COUNTRY ENTERPRISE ACTIVITY HETHOD/PROCEDURE sale and Loss: FCFA34h - Of the five hotels it owns,some were already privatised via SONHOTEL(SQC. NATIONALE Hotel Holding Private sale/Management Net (1983) shifting to eanagesentcontracts forothers. Theyhave agreed to sell D'HOTELLERIE) Coapany Contract/Lease. AgadezAir property to a private Nigerien. - Govt.has decided to turnover sanagementof other unprivatised hotels to private hotel fireson lease arrangements. Loss: FCFA93m - Existing partners bought out governmentshare. INN(IMPRIMERIE NATIO- Printing Office Private sale. Net (1983) NALEDU NIGER) private Loss: FCFA42 - Problemwith aanagement.Hotel is currently being managedby SPEGH(SOC. PROPRIETAIRE Hotel Managesentcontract. Net hotel fire lUTH). (1) ET EXPLOITANTEDE (1983) - As of December1986, 6overnmenthas decided to retain ownership but L'HOTELGAWEYE) contract out managementor lease assets to private businessmen. - Governmentliquidated SN6TNand sold its assets or part of it to SN6TN Civil Works Fragmentation/Saleof assets. private parties. (2) Income:FCFA Ge - Full privatloatlon is completed. (4) SONITAN Tannery Private sale. Net (1983)

(1)Privatization in Niger (E. Berg). (2)Legal FrameworkGoverning Public Enterprises in DevelopingCountries (C. Vuylsteke). (3) Divestiture of SOEsin LICs (op. cit.) (4) Public Enterprise Demandfor Managementin Sub-SaharanAfrica - IFC (1986J.

NIGERIA

- Privatization announcedin budget speeches. - Privati:ation planned at both federal and state levels. - Pnssible candidates include a large numberof individual and financial SOEs. - The planned privatization listed below are extracted from Decree No.25 of July5, 1988which sets out the nodalities of orivatization J and contains in schedulethe targetted enterprises. - Presently 1000Federal Governmentowned; at least 3(0 to be PLANNED: FEDERALMORTGAGE Banking privatized. DANKOF NIGERIA - Presently 100IFederal Governmentowned; at least 30Xto be NIGERIANINDUSTRIAL DEV. Ranking privatizen. BANKLIMITED - Presently 100IFederal Governmentowned; at least 30X to be NIGERIANBANK FOR Banking privatized. COMMERCEAND INDUSTRY LTD. - Presently 100IFederal Governmentowned; at least 30l to be FEDERALSAVINGS BANK Banking Drivatized. - Presently 100IFederal Governmentowned; at least 600 to be UNIPETROL OilMarketing Co. oruvatized. - Presently 60QFederai Governoentowred; at least 60Xt. be Privatized. NATIONALOIL ANDCHEMICAL Oil MarketingCo. CO., LTD. - Presently B0Qceoeral 60vern,ent .wned; at least 400to be privatized. AFRICANPETROLEUM LTD. Oil Marketing Co. - 100IFederal Governmentowned; at least 600 to be privatized. JOsSTEEL ROLLING MILL Steel Rolling Mill - 100IFederal 6overneentowned; at least 60Xto be pr:vatized, KATSINASTEEL ROLLING Steel Rolling Mill MILL - 100IFederal Governmentnened; at least 60S to be privatized. OSOGP8STEEL ROLLING Steel Rolling Mill HILL - Presently 100IFed. 6overnoentowned; at least 60/. to be Privatized. NG:ERIAiRWiAYS LTD. Airline - Presently 100lFed. Governmentowned; at least 600 to be privatized. NIGERIANATIONAL SHIPPING Airline LINELTD. - Presently 1001Fed. Governmentowned; at least 50% to be pr:vatzed. NIGERIANSUPER PHOSPHATE Fertilizer FERTILIZERCO., LTD. - Presently 70/ Federal Governrentcwned; at least 600.to be orivatized. NATIONALFERTILIZER Fertilizer CO. NIGERIALTD. - Presertly 64.0.3Federal Governmentowned; at least 60Q to be NIGERIANATIONAL PAPER Paper fill PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

MANUFACTURINGCO., LTD. privatized. NIGERIANEWS PRINI Paper M"i - Presently 100%Federal Governmentowned. MaximumFederal Government MANUFACTURINGCO., LTD. participation after privatizaticn - 40%. N16ERIAPAPER MILLS LTD. PaperMill - Presently 100%Federal Governnentowned. MaximumFederal Governsent participation after privatization - 40%. SAVANNAHSUGAR CO., LTD. SugarCompany - Presently 75.47 Federal Governmentowned; at least 60% to be privatized. SUNTISUGAR CO., LTD. SugarComoany LAHAJISUGAR CO., LID. SugarCompany ASHAKACEMENT CO., LTD. CementCompany BENUECEMENT CO., LTD. CementCompany CALABARCEMENT CO., LTD. CementCompany CEMENTCO. OFNORTHERN Cement Company NIGERIALIMITED NIGERIACEMENT CO. LTD. CementComDany NKALA6U ANAhBRAMOTOR Automobileand MANUFACTURINGCO., LTD. truck company - Presently 100%Federal Governmentowned. To be fullyprivatized. LEYLANDNIGERIA LIMITED Automobileand - Presently IOOXFederal Governmentowned. To be fully privatized. truck company NIGERIATRUCK Automobileand - Presently 100%Federal Governmentowned. To be fullyprivatized. MANUFACTURINGCO., LTD. truck company PEUGEOTAUTOMOBILE OF Automobileand - Presently l10yFederal Governmentowned. To ye fully privatized. NIGERIALIMITED truck company VOLKSWAGENOF NIGERIA LTD.Automobile and - Presently IOQXFederal Governmentowned. To be fullyprivatized. truck company STEYRN16ERIA LTD. Automobileand - Presently 100%Federal Governmentowned. To be fully privatized. truck company -_ NIGERIA LIMITED HOTELS Tourism - Presently 000%Federal Governmentowned. To be fully privatized. 0 OURBARHOTEL LIMITED Tourism - Presently lOOTFederal Governmentowned. To be fully privatizeo. ADATEXTILE MILLS Textile - Presently 100%Federal Governmentowned. To be fully privatized. CENTRALWATER TRANSP. Transport - Presently 100IFederal Governmentowned. To be fully privatized. CO., LIMITED NATIONALCARGO HANDLING Transport - Presently 000%Federal Governmentowned. To be fully privatized, LIMITED N16ERIANDAIRIES CO.. LTD.Agriculture - Presently 100%Federal Governmentowned. To be fully privatized.

NIGERIANNATIONAL FISH Fishery - Presently 1000Federal Governmentowned. To be fully privatized. CO.,L1IITED NIGERIANFOOD CO,, LTD. Food - Presently 100%Federal Governmentowned. To be fully privatized. NATIONAL6RAINS PROD. Agriculture - Presently 100%Federal Governmentowned. To be fully privatized. CO., LIMITED NATIONALPOULTRY PROD. Agriculture - Presently 100%Federal 6overnmentowned. To be fully privatized. CO., LIMITED NATIONALROOT CROPS PROD. Agri-business - Presently 100%Federal Governmentowned. To be fully privatized. CO.LTD AND OTHER SUCH FOODPROD. COMPANIES NIGERIANNATIONAL SHRIMPS Fishery - Presently 100%Federal Governmentowned. To be fully privatized. CO., LIMITED NEWNIGERIAN SALT CO., Agriculture - Presently 100%Federal Governmentowned. To be fully privatized. LIMITED NATIONALFRUIT CO., LTD. Agriculture - Presently 100%Federal 6overnmentowned. To be fully privatized. NATIONALSALT CO., LTD. Agriculture - Presently 100%Federal Governmentowned. To be fully privatized. IJOKO SPECOIMILLNIGERIA LTD. Agriculture - Presently 100%Federal Governmentowned. To be fully privatized. SOUTH-EASTRUMANIAN WOOD Forestry - Presently 100%Federal Governmentowned. To be fully privatized. PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

INDUSTRIESLTD. CALABAR SOUTH-EASTRUMANIAN WOOD Forestry - Presently 1OOX.Federal Governmentowned. To be fullyprivatized. INDUSTRIESLTD. ONDO NIGERIANYEAST AND Brewery - Presently 100XFederal Governmentowned. To be fully privatized. ALCOHOLCO.. LTD. BACITA N16ERIANFILM CORPORATION File distribution - Presently IOOXFederal Governmentowned. To be fullyprivatized, NATIONALFREIGHT CO., LTD.Transport - Presently 100IFederal 6overnmentowned. To be fully privatized. NATIONALANIMAL FOOD CO. Food - Presently IOOXFederal Governmentowned. To be fully privatized. LTD. PORT-HARCOURT OPOBOBOAT YARD - Presently 100IFederal Governnentowned. To be fullyprivatized. MADARADAIRY CO., LTD. Agricultural - Presently 100IFederal Governmentowned. To be fully privatized. YDM. ORE/IROLEOIL PALMCO. Agricultural - Presently 100IFederal Governmentowned. To be fully privatized. LTD. ONDO OKOMOOIL PALMCO., LTD. Agricultural - Presently 100IFederal Governmentowned. To be fully privatized. BENDEL NATIONALLIVESTOCK Agricultural - Presently 1000Federal Governmentowned. To be fully privatized. PRODUCTIONLTD. ROADCONSTRUCTION CO.OF Public works - Presently 1000Federal 6overnmentowned, To be fully privatized, NIGERIALTD. NATIONALFILM DIST. FilmDistribution - Presently 1000Federal 6overnmentowned. To be fully privato:ed. CO., LTD. NIGERIANRANCHES CO., LTD. - Presently 1000Federal Governmentowned. To be tully privatized. KADUNA IMPRESSITBAKOLDRl - Presently I0OXFederal Governmentowned, To be fully privatized, NIGERIALIMITED NORTHBREWERIES LTD. RANOBrewery - Presently 1000Federal Governmentowned. To be fullyprivatized. NIGERIANBEVERAGES PROD. Brewery - Presently 1000Federal Governmentowned. To be fully privatized. CO., LIMITED WESTAFRICAN DISTILLERIES - Presently 0000Federal Governmentowned. To be fully Privatized. LIMITED NIGERIAENGINEERING Engineering - Presently 1000Federal Governmentowned. To be fully privatized. CONST.CO., LTD. TOURISTCO. OF NIGERIA Tourism - Presently 1000Federal 6Gvernmentowned. To be fullyprivatized. LTD.(ONNERSOF FEDERAL PALACEHOTELS) ELECTRICITYMETERS CO., Manufacturing - Presently 100%Federal 6overnimentowned, To be fullyprivatized. LTD. ZARIA AMERICANINT'L INSURANCEFinance - Presently 1000Federal Governmentowned. To be fully privatized. CO., LIMITED GUINEAINSURANCE CO., LTD.Finance - Presently 100IFederal Governmentowned. To be fully privatized. SUNINSURANCE CO., LTD. Finance - Presently 1007Federal Governmentowned. To be fully Privatized. UNITEDNIGERIA INSURANCE Finance - Presently 100%Federal Governmentowned. To be fullyprivatized. CO., LIMITED UNITEDN16ERIA LIFE Finance - Presently 1000Federal 6overnmentowned. To be fully privatized, INSURANCELIMITED NIGERINSURANCE CO., LTD. Finance - Presently 100IFederal Governmentowned. To be fully privatized. MERCURYASSURANCE CO., Finance - Presently 1001Federal Governmentowned. To be fullyprivatized. LIMITED CRUSADERINSURANCE CO. Finance - Presently 1000Federal Governmentowned. To be fully privatized. LIMITED ROYALEXCHANGE CO. LTD. Finance - Presently 1000Federal Governmentowned. To be fullyprivatized. NEM INSURANCECO. LTD. Finance - Presently 100IFederal Governeentowned. To be fully privatized. LANUNION AND ROCK Finance - Presently 1000Federal Governmentowned. TD be fully privatized. INSURANCECO., LTD. PREST16EASSURANCE CO. Finance - Presently 100IFederal Governmentowned. To be fully privatized. PRIVATIZATIONTECHNIGUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

LIMITED BRITISHAMERICAN Finance - Presently 100IFederal 6overnnentowned, To be fully privatized. INSURANCECO., LTD. WESTAFRICAN INSURANCE Finance - Presently 1007.Federal Governmentowned. To be fully privatized. PROVINCIALCO. LTD. MANCHOKCATILE RANCH Aariculture - Presently 100%Federal 6overnmentowned. To be fully privatized. MOKWACATTLE RANCH Agriculture - Presently 100IFederal Governmentowned. To be fully privatized. POULTRYPROD. UNITA IN Agriculture - Presently 100lFederal Governmentowned. To be fully privatized. JOS, LLORINAND KADUNA KADUNAABATTOIR AND Food - Presently 100IFederal Governmentowned. To be fully privatized. KADUNACOLD MEAT MARKET BAUCHIMEAT FACTORY Food - Presently 100IFederal Governmentowned. To be fuIIy privatized. ANDGALAMBI CATTLE RANCH MINNAP16 FARM Food - Presently 1007Federal Governmentowned. To be fully privatized. KANOABATTOIR CO., LTD. Food - Presently 100IFederal Governmentowned. To be fully privatized. UMOAHIAP16 FARM Food - Presently 100IFederal 6overnmentowned. To be fully privatized. GIANTCOLD STORE, KANO Cold storge - Presently 1007Federal Governmentowned. To be fully privatized. AYIP-EKUOIL PALMCO. LTD.Agriculture - Presently 100IFederal Governmentowned. To be fully privatized. HIECHIOWAOIL PALMCO. Agriculture - Presently IOOXFederal Governmentowned. To be fully privatized. LIMITED SOKOTOINTEGRATED LIVE- Agriculture - Presently 100IFederal Governmentowned. To be fully privatized. STOCKCO., LTD. MOTORENGINEERING SERVICESEngineering - Presently 1000Federal Governmentowned. To be fully privatized. CO., LIMITED FLOURMILLS OF NIGERIA Food - Presently IAOO.Federal Governmentowned. To be fully privatLied, LIMITED NIGERIANYEAST ALCOHOL Brewery - Presently 1001.Federal Governmentowned. To be fully privatized. 4 MFP.CO., LTD. NICHEMTEXINDUSTRIES LTD. - Presently 100IFederal Governmentowned. To be fully privatized. COMPLETED: - [Divestiture action kith respect to twoFederal Governmentowned andsole State Governmentowned companies.]

OMAN

COMPLETED:OMAN FLOUR MILLS Flour Mill Public offering. OMANCEMENT COMPANY Cesent Public offering. OMANREFINERY COMPANY Oil Refinery Public offering. n.a. Copper Public offering.

PAKISTAN

- Thedecision to start with disinvestment was first announcedin the 1905/1906Budget speech. - Governmentannounced SOEs would be privatized gradually and in part through stock market offerings. Governmentwill not relinquish control,. (I

PLANNED: PAKISTANAUTOMOBILE AutomobilePlants Assets: Rs 2.710 CORPORATION (19B3) BANNLSUGAR MILLS LTD. Sugar Hills PAK-SAUDIFERTILIZER CO. Fertilizer Public offering.

UNDERWAY:PAKISTAN INTERNATIONAL Airline Public offering. - IFC's Capital Markets Groupis currently involved in the privatization AIRWAYS(PIA) of PTA as underwriter for the sale of the PlA's capital, (2) Sui Northern Gas Gas Sui Gas TransmissionCo. Gas PRIVATIZATION'ECHNIOUES COUNTOY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

BELLAEN61NEERIN6 - PACOunits. Havebeen listed on the Karachi Stock Exchangeas presently 100 percent governmentowned. PAK SUZUi.lMOTORS AND MILLATTRACTORS HARNAIWOOLEN - PIDCunit. Listed on the Karachi Stcck Erchangeas presertiv 109 percent governmentowned. ZEALPAK CEMENT - State CenentCorporation unit. Listed on the Karachi Stock Exchange as presently 100 percent governmentowned, METROPOLITANSTEEL AND - SECunit. Listed on the Karachi Stock Exchangeas presently 100 PAKISTANENGINEERING percent governmentowned. NATIONALREFINERY - State Petroleum Refininq and PetroleumChemical. Listed on the Karachi Stock Exchangeas presently 100 percent governaentowned, PAKISTANTELEPHONES - Listed on Karachi Stock Exchangeas presently 100 percent goverrnment owned.

COMPLETED:REPUBLIC MOTORS Autoaobile plants - Paistan AutomobileCorporation has disinvested. Republic Motors which not reports under the nameHino-Pak.

(I) Divestiture of SOEsin LDCstop. cit.) (21 TheRestructuring of Large SOEs(Booz Allen and Haeilton Inc.).

PANAMA

PLANNED: CITRICOSDE CHIRIOUI Fruit plantation Private sale. EL ALANJESU6AR MILL Sugarsill Sale of assets/Management contract FELIPILLOSUsAR MILL Sale of assets - Governmentannounced privatization of the mill whosefacilities were 4_ closed downin 1983. UNDERWAY:HOTEL PANAMA Hotel/Real estate Private sale. - Closed 1986;assets offered for sale in 1987.

COMPLETED:AERORPERLAS AIRLINE Airline Private sale. LASCABRAS SUGAR MILL SugarHill Private sale, - Governmentplaced SOEin the market in August 1986. ENDEMA Equipmentrental - Governmentplaced SOEin the market in August 1980. ENASEM Seedproducer Sale of assets. - 6overnmentclosed SOEin August 1986. CONTADORARESORT S.A. Tourist Complex Private sale (1) Sale Price 34m - Sold to Japaneseinvestors; complexcost the governmentS 54m.(2)

(11 Divestiture in DevelopingCountries (op. cit.) (21 Divestiture of SOEsin LDCs(op. cit.)

PAPUANEW GUINEA

- The Governmentencourages the private sector to participate actively in the privatization programby taking up equity holdings and management positions as SOEscome up forsale. The programis seen as important in providing moreaccess to the private sector to grow as well as allowing 6overnmentto concentrate on doing better, things which are sore traditionally Government'srole. - TheNational Executive Council in 1987endorsed a general policy of privatization which over comingyears will see a large numberof the 6overnsent's 40 or so SOEsprivatized. A step by step phasedapproach is being taken and currently eight SOEsare in the advancedstages of of being privatized. - Major studies will be impleaentedin 1986to finalize next round of SOEsplanned for privatization. PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZEINDICATOR COMMENTS

PLANNED: PAPUANEW GUINEABANKING Banking CORPORATION NAMOAWANFINANCE COMPANY Finance INVESTMENTCORP. OF PNG Finance NATIONALHOUSING HousingAgency COlMISSlON MOTORVEHICLES INSURANCE Insurance TRUST UNDERWAY; NIU61NIINSURANCE CORP. Insurance NEWGUINEA MARINE Fishing PRODUCTSPTY, LTD. PNGFOREST PRODUCTS, LTD. Agriculture STETTINBAY LUMBER CO. LumberProducts PN6SHIPPING CORP. Shipping - Privatization has beenfinalized in principie. NATIONALPLANTATION Agriculture MANAGEMENTAGENCY NATIONALFOREST PRODUCTS Agriculture KAGAMU6ANATIONAL Agriculture PRODUCTSPTY, LTD. COMPLEIED:AIR NIU61NI Airline Public offering. - 6overnnenthas sold shares to the public while retaining sajority control.

PERU

- Peru's ProgramaTrienal' outlines the proposeddivestiture program. It states that about a third of the SOEsare to be sold or transferred 'because of their nature and objectives' to the private sector while another third are to be eerged or liquidated becausethey are no L longer viable. Manyof these SOEs,according to the program, will needrestructuring prior to sale. - CONADEhas the task of implementingGovernment's privatization program. - About 22 SGEs in the gas distribution, Agro-industry, cement, paper, chemical, steel, textiles, metalwork, and engineering, are considered for privatization. Mostly private sales; new investment sought in Aeroperu(airline), i.e.capital increase through public placementof shares. - In May, 1980a new Governmenttook over in Peru and uncertain information is available cn program.

PHILIPPINES

- The institutional frameworkfor handling privatization consisting principally of the Comeitteeon Privatization (COP)and the Asset Privatization Trust (APT),is described in VolumeI of the report. Portfolio of privatization includes on the one hand, multibillion peso Non-PerformingAssets (NPAsl acquired by state-owneddevelopment banks, being offered for re-privatizations, including numerouscompa- nies and individual assets, APTcatalogues of NPAsare published. Theseare not SUEsin the terns of this report, and are essentially reprivatizations. Another portfolio of SUEsto be privatized includes somefinancial and mostly non-financial governments corporations (6Cs) created by the State and by State holdings. In the aggregate, they represent 134 SOEs,with total assets in excess of PP 1ZiB, total liabilities of about PP 111 B and employmentof about 51,500. PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTiVITY METHODIPROCEDURE SIZEINDICATOR COMMENTS

PLANNEDAND [About 134 SDEs' rSectors include [fostlypublic offerings and Total assets - Action initiated or advancedon serveral SODEs. 'fNDERWAY: financial inter- private sales.; approximatelyPP 12b B sediation, agriculture, agri- business, tourism, ground and air transport, urban masstransit, port activeties, chemicals, equip., manufacturing, fibers, oil and gas, earine, electricity and water, etc.]

COMPLETED:[In excess of 50 NPAs [Including [Private sales] weresold] financial companies (bank and holding corporation) and hotel]

[5 SOEs] [include small size[Private sales] SOEs] PORTUGAL

- Most undustries and financial institutions nationalized after 1974 will be gradually sold to private companiesand individual investors.

PLANNED: SETENAVE ShipbuzldingYard Private sale. - To be restructured prior to privatization. n.a. Post Office n.a. TelephoneCompany n.a. Transport n.a. Rail Transport AIR PORTUGAL Airline ELECTRICIDADEDEPORTUBAL Electric Utility - Classified as a problemcompany and will undergofinancial restructuring prior to privatization. OLUHISAL Fertilizer - Classified as a problemcompany and will undergofinancial restructuring prior to privatization. SIDERURGIANACIONAL Steel - Classified as a problemcompany and will undergofinancial restructuring prior to privatization. n.a. Brewery - Initially, to be partially privatized without further restructuring. n.a. Tobacco - Initially, to be partially privatized without further restructuring. n.a. Cement - Initially, to be partially privatized without further restructuring. n.a. Pulp and Paper - Initially, to be partially privatized without further restructuring. UNDERWAY:UBP Bank - Conversionof UBPand three more state banks into public limited companiesis regardedas discreet movetowards privatization.

RWANDA

COMPLETED:USINE DOALLUMETTES Matches Sale of assets. - Sold to Swedishcompany, SWEDISH HATCH, in which Rwandesegovernment becameshareholder. PRIVATIATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SllE INDICATOR COMMENTS

SAoTOME E PRINCIPE

COMPLETED:BELA VISTA ESTATE CocoaPlantation Managementcontract. - Contract awardedto FRANCISCOMANTERO of Portugal. UBABUDO ESTATE CocoaPlantation Managementcontract, - Contract awardedto SOCFINCOof France.

SENEGAL

- Governmenthas categorized the public enterprises which results in some30 companiesin 7 sectors being targetted for full or partial privatization: state will divest itself totally from 17 firms and partially from 13 others. An additional S are being liquidated. - An implementationprogram has beenproposed by the Rovernment's working group in order to value shares of these companiesand to issue shares to the general public using the banking systemas intermediary. - A iaw lists SOEs(mostly societes d'EconomieMixte) to be privatized fully and those to be privatized partially.

PLANNED: SEGI Sale of assets. BSK Bank Private sale. - Full privatization is olanned. (3) SAFCOP Fishery Private sale. (31 - Full privatization is planned. SOTEXKA(SOCIETE TEXTILE Textile Private sale. (3) - Full privatization is planned. DEKAOLACK) SISAC(SOCIETE INDUSTRI- Sack Manufacture Private sale. (3) Revenues: 0.Q3 - Full privatization is planned. ELLEDU SAC) (1984) BERLIET-SGL(SOCIETE Autwombiles Private sale. Revenues:CFA 2.5B - Full privatization is planned. Berliet France owns70X of the SENERALAISEDES AUTOS) (19831 company.(3) n SAFAL Machines Private sale. (31 - Full privatization is planned. HAMO Construction Private sale. (3) - Full privatization is planned. SENHOTEL Hotel Private sale. (3) - Full privatization is planned. SPHUTERANRA Hotel Private sale. (3) Revenues:CFA 1.9B - Full privatization is planned. (1984) VACAP(VACANCES CAP Hotel Private sale. (3) Revenues:S 4.0a - Full privatization is planned. SKIRRIN6) (1984) SAIHN6OR Hotel Private sale. (31 Revenues:$ 6.0w - Full privatization is planned. (1904) SBHCV Hotel Private sale. (3) - Full privatization is planned. SPT Services Private sale. (3) Revenues:CFA 380m - Full privatization is planned. (19E4) SODEHME Services Private sale. (3) Revenues:CFA 170w - Full privatization is planned. (1984) SIDEC Cinema/Films Private sale. (3) - Full privatization is planned. SNPC Services Private sale. 13) - Full privatization is planned. SOSEPRA Handicrafts Private sale. (3) Revenues:CFA 131w - Full privatization is planned. (1984) BICIS (BANOUEINTERNATIO- Bank Private sale/Joint venture. (3) Revenues:CFA 9.2B - Partial privatization is planned. NALEPOUR LE COMMERCE) (1984) BlAT-SENEGAL Bank Private sale/Joint venture. (3) - Partial privatization is planned. USB(UNION SENEGALAISE Bank Private sale/Joint venture. (3) Revenues:CFA B,7B - Partial privatization is planned. DE BANDUES) (1984) BNDS(BANOUE NATIONALE DE Bank Private sale/Joint venture. (3) Revenues:CFA 11.2B - Partial privatization is planned. DEVELOPPEMENT) (19084) SONA6A(SDCIETE NATIONALE Bank Private sale/Joint venture. (3) Revenues:CFA l.0B - Partial privatization is planned. DEGARANTIE) (1984) SERAS Hides and Skins Revenues:N 4.7w - Formerly ownedby the French trading company,CFAO. (3) Distribution (1984) PRIVATIZATIONTECHNIOUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

SALINSDU S.S. (SOCIETE Marine Salt - Fartial privatization is planned. NOUVELLEDESALINS) DAKAR-MARINE Ship Repair Private sale/Joint venture. (3) Revenues:S 7.5 - Partial privatization is planned. (1984) SINAESDAGUERR Construction Private sale/Joint venture. (3) - Partial orivatization is planned. SAPCO Hotel Private sale/Joint venture. (3I Revenues:CFA 86e - Partial orivatization is Planned. (1984) SICAP(SOCIETE IMROEI- Housing Private sale/Joint venture. 13)Revenues: CFA 2.98 - Partial privatization is planned. LIEREDU CAP VERT) (19841 SONED Services Private sale/Joint venture. (3) Revenues:CFA 349e - Partial privatization is planned. (1984) SODIDA Services Private sale/Joint venture. (3) Revenues:CFA 32e - Partial Privatization is planned. (1984) BUD MarketGardening Sale of assets/Liquidation. SNPT Tourist Sale of assets/Liquidation. UNDERWAY:ONCAD Marketing Agency Sale of assets/Liquidation. SSE Printing Sale of assets. COMPLETED:SIV Textiles Private sale. - Transferred to private owners.(2) SISCOMA Fare lplesents Private sale. - Transferred to private owners. (2) SNCDS Fish Processing Private sale. (2) n.a. Agri-business. Managementcontract. (I) - Contract with COMPA6NIESUCRIERE SENEGALAISE (France) in 1980. (1) n.a. Housing Manageeentcontract. (1) - Contract with MODERNHOUSING PANOMO in 1972. (1) COMPAGNIESENEGALAISE DE Shipping Private sale. - Governeent sold some38% share in COSENAMin February to a local NAVIGATIONMARITIME shippinq company,EXPRESS NAVI1ATION which now becomesCOSENAM's 72% ICOSENAN) largest shareholder. Soverneentreduced its stake from to 34X.

(I) ManagementContracts (op. cit.) u-s (2) Divestiture in DevelopingCountries (op. cit.) . !3) Public Enterprise Demandfor Managementin Sub-SaharanAfrica (op. cot.)

SIERRALEONE

5% (Rankof Sierra COMPLETED:NATIONAL PALM OIL LTD. Palm Oil Public offering/Private sale. - Ownershipafter privatization: 32.51 (Government), Leone), 2.51 (SIERRALEONE PRODUCE MARKETINB GROUP), 45% (GREENFIELDS AGRICULTURALAND INDUSTRIALDEVELOPMENT CORPORATION LTD), 15% (general public of Sierra Leone). n.a. Hotel Lease. (I)

(I) Divestiture in DevelopingCountries (op. cit.)

SIN6APORE

- In January, 1986, the Governmentappointed a Public Sector Divestment Coamittee to look into the divestment of companieswhich cameunder TEMASEKHOLDINGS, LTD., SHENG-LIHOLDING COMPANY and the statutory bocards.(2) Information on governmentdecisions on disposition not available. PLANNED: SINGAPORESHIPBUILDING Shipbuilding and ANDENGINEERING Repair HOTELPREMIER Hotel D0S LAND Real Estate Public offering. Paid Capital: SS56m - Potential for listing but may haveto waituntil it has financially (1986) recovered. Subsidiary of TEMASEK,49% to be divested. (2) 10%. ACMAELECTRICAL Appliances Public offering. Paid Capital: SN 24n - TEMASEKowns 12% and the POSTOFFICE SAVINGS BANK, Bnth stakes INDUSTRIES,LTD. (1986) are to be divested. (2) 9 23% (2) CHEICALSINDCSTRIES, Chemicals Public offering. Paid Capital: SS 15m- TEMASEKsubsidiary, it is willing to sell its entire stake; LTD. (1986) CHEMICAL'sstock is already quoted in the Exchange. PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

SEMBAWANGSHIPYARD, LTD. Shiprepair and Public offering. Paid Capital; SS150n - TEMASEKis to reduce its stake from74% to 30%, divesting of 44%of Shipbuilding (1986) its share. (2) TELECOMMUNICATION TelecommunicationPublic offering. Total Assets: S$ 3.6B - Divestsent of 25.of shares is planned. AUTHORITY(TELECOMS) (1986) - Oneof seven statutory boardsconsidered for partial privatization. Apart from privatizing omnership, the board oay offer scope for privatization of production and liberalization. 12) PUBLICUTILITIES BOARD Water, Gasand Fragmentation, Total Assets: SS 4.9B - Divestmentof 25Xof shares is planned. (PUB} Electricity (1986) - Oneof seven statutory boards considered for partial privatization. Distribution Apart from privatizing ownership, the board mayoffer scope for privatization of production and liberalization. (2) - Major issues before privatization are whether electricity and gas should be privatized separately, whether there should be three seperate regulating authorities and how overheadscan be kept lowwhen the three departaents function independently. (21 SINGAPOREBROADCASTINS Radio and TV Total Assets: SS221a - On of seven statutory boards considered for partial privatization. CORPORATION(SBC) Broadcasting (1986) Privatization of SBCis one of the nost sensitive with attractiveness being doubtful so long as SOC has to give awaytime slots for public service. (2) SINGAPOREOFFSHORE Servicing and Public offering. Paid Capital: SS l - TEMASEK's33X holdings will be completely sold. PETROLEUMSERVICES OilExplDration (1986) - Has good record of earnings and has paid dividends consistently. (2) JURONGSHIPYARD LTD Shipping and Public offering. Paid Capital: SS 9ba - Ownedby TEMASEK(43X), a majorJapanese investor (IH) and a small Engineering (1986) group of shareholders (4%). TEMASEK'sholdings to be sold. (2) CHANGIINTERNATIONAL Airport Terminal Public offering. Paid Capital; SS50e - PSAis to reduce its stake from 49Xto 21X. (2) AIRPORTSERVICES PTE Services i198b) - PSA owns70% of CIAS,the remaining 30X is ownedby six airlines. It (CIASI provides ground services in direct competition with SingaporeAirport TerminalServices. (2) SINGAPOREPOOLS PTE Gaming Public offering. Paid Capital; SN lo - 100Iowned by TEMASEK,total privatization is foreseen, (1986) v, YAOHANSINGAPORE PTE Retail Store Public offering. Paid Capital: SS18D - Ownedby TEMASEK(15%), UB5 (13X), others (9%) and b2%by YAOHAN (198b) JAPAN.TEMASEK's shares mill be sold. (2) MM6UINSURANCE PTE, Insurance Public offering. Paid Canital: SS15e - Indirectly held by TEMASEK,through 60%ownership by KEPPEL,49% to LTD. (1986) be divested. (2) - Potential for listing but way have to wait until it has recovered from the recession. (2) SEMBAWANGTOWING COMPANY Towing Service Public offering. Paid Capital: SN Sm - Indirectly held by TEMASEKthrough SEMBAWANGand PSA, 49X is to be (PTE), LTD. (1986) divested. Potential for listing but mayhave to wait until it has recovered from the recession. (2) SINGAPOREAIRPORT Airport Terminal Public offering. Paid Capital: SN 10A - Indirectly held by TEMASEKthrough SIA, 49X to be divested. (2) TERMINALSERvICES FTE Services (1906) - Potential for listing but may have to wait until it has recovered from the recession. (2) SHIN6LOONG FINANCE LTD Financial Service Public offering. Paid Capital: SS Ib - Indirectly held by TEMASEKthrough KEPPEL,49X to be divested. (2) (1986) - Potential for listing but may have to wait until it has recovered from the recession. (2) SINGAPOREAVIATION AND Insurance Public offering. Paid Capital: SS 7w - Indirectly held by TEMASEKthrough SIA, 49% to be divested. (2) GENERALINSURANCE (1986) - Potential for listing but may have to wait until it has recovered COMPANY(PTE), LTD. froa the recession. (2) CONTAINERWAREHOUSING Warehousing Public offering. Paid Capital: SS6b - Potential for listing but mayhave to wait until it has recovered AND TRANSPORTATION (1986) from the recession. 497.of the companyto be divested. (2) INTERNATIONALDEVELOPMENT Engineering Management/Employeebuy-out. Paid Capital: SN 1.5. - Has experiencein planning and building airports and hospitals. Plan AND CONSULTANCYCORP. Consultancy (1986) is to partially divest MND HOLDINGSto managementand staff. MND is to divest 49Xof its stake bringing state holdings to 51X. (2) SBCENTERPRISES MediaServices Public offering Paid Capital: 9S 0.2n - 100%subsidiary of SBC,performing commercialoperations of SBC.49% (1986) of SBCis to be divested bringing its holdings to 51%. (2) SPECSCONSULTANTS Engineering Management/Employeebuy-out. Equity: SN 7.4h - Subsidiary of PSA, its main role is to sell PSA's port expertise. 49% Consultancy (1986) of SPECSis to be divested reducing PSA's holdings to 51%. (2) HITACHIELECTRONIC TV Manufacturing Public offering. Paid Capital: SS30w - TEMASEKand the ECONOMICDEVELOPMENT BOARD each owns 15% with both PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

DEVICES(HEDS) (1986) intending to sell all its shares. (2) GATXTERMINALS, LTD. Bulk Liquid Public offering. Paid Capital: SS lle - Share to be initially offered for sale to existing shareholders. 50X Handling (1986i of SATXto be divested. (2) SHENG-LIGrouD Defense Public offering. Paid Capital: SS 187. - Someof SHENG-LI'ssubsidiaries appearattractive candidates for Industries (1986) privatization but the isplications of their flotation need to be exaa- ined to ensure that sensitive operations are not comprosised. (2) - Amongthe SHEN6-LIcompanies recommended for further study prior to privatization are: Allied Ordnance,SAFE Enterprises, SingaooreAir- Craft Industries, SingaporeFood Industries, SingaporeShipbuilding and Engineering and SingaporeTechnology Corporation. (2) COKMERCIALANDINDUSTRIAL Security Service Total Assets: SS49. - Oneof seven statutory boards considered for partial privatization. SECURITYCORP. (CISCO) (1986' Provides security services and is the largest auxiliary police force working closely with the SingaporePolice Force. Privatization of CISCOis not being pursuedat the moment.(2) DOSFINANCE, LTD. Financial Service Public offering. Paid Capital: SS36n - Potential tor listing but mayhave to wait until it has recovered (1986) from the recession. Subsidiary of TEMASEK,49X to be divested. (2) SINGAPOREAIRPORT BUS Taxi Service Public offering. Paid Capital: SS Sa - Share to be initially offered for sale to existing shareholders. 31X. SERVICE,LTD. (1986) is to be divested. (2) SEMBAWANOSALVAGE COMPANY Ocean Towage and Pubilic offering. Paid Capital: SS 19 - Subsidiary of TEMASEK,its share is to be initially offered for sale Salvage (1°8t) to existing shareholders. The plan is to sell entire 597Xslage.(2) VANOMMEREN TERMINAL Liquid Storage Public offering. Paid Capital: SS2.2a - Subsidiary of TEMASEK,its share is to be initially offered for sale (1986) to existing shareholders. The plan is to divest TEMASEKand other Governeentholdings (PSA,INTRACO and D85) of 34X. (2) SUZUE-PSACOLD STORAGE Cold Storage Public offering. Paid Capital: SN Se - Share to be initially offered for sale to existing shareholders. 51i (1986) share of PSAto be divested. (2) CONSTRUCTIONTECHNOLOGY, Construction Private sale/Management Paid Capital: SS 5S - Foundedto set the pace for private contractors handling HD8construc- LTD. (CONTECH) buy-out. (1986) tion jobs. Since Construction Board is now responsible for promotion of new buildingtechnology CONTECH is no longer essential. Plan is to Ln sellCONTECH to notherconstruction companies or itsmanagement. CON- TECHis a subsidiary of MNIIDHOLDINGS, Entire 1002to be divested. (2) JURONGENVIRONMENTAL Environmental Paid Capital: SS in - Set up by JURONGTOWN CORP., providing consultancy in clean-room EN61NEERING,LTD. Engineering (1986) construction and energy auditing. Total sale is planned. (2) URBANREDEVELOPMENT Carpark Management AUTHORITY JURONGTORN CORPORATION Industrial Fragmentation. Total Assets: SS2.08 - Oneof seven statutory boards considered for partial privatization. (JTC) Management (1986) - JTC's core activities are leasing industrial sites, construction, sale and lease of factory buildings, provision of port and bulk handling facilites and provision of engineering and logistics back-up for the offshore oil industry. (2) - JTC has already farmed out manyactivities to the private sector like construction, maintenance,cleaning and security of industrial estates. It is further preparedto dispose of its warehouseswhen the property market recovers. The container handling activity is not privatizable unless it can competewith PSA. Privatization Committee recommendsthat JTC privatization not be pursuedfor the moment.(2) CIVIL AVIATIONAUTHORITY Airport Service Fragmentation/Publicoffering. Total Assets: SS3.38 - Oneof seven statutory boards considered for partial privatization, OFSIN6APORE (CAAS) (1986) Main functions are air traffic control, regulation of air safety, air traffic rights negotiation, airport fire service and airport management, In its managementoperation, cAAShas already privatized all commercialacitivities: ground services and flight catering to SATS CIAS,oil companiesprovide aviation fuel to airlines and private companiesoperate shops and restaurants. The other functions are regulatory and administrative and are deemedunsuitable for privatization. Plan is to further privatize CAASby selling shares of CHANGI AIRPORTto the public. Without reorganization, it is unlikely that CAASwill attract investors. (2) PRIVATIZATIONTECHNIUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

- Divestmentof 25X of shares planned. UNDERWAY:YULIACO LTD MITSUBISHISINGAPORE Ship/Rig Building Private sale. - MITSUBISHIHEAVY INDUSTRIES of Japanhas reachedtentative agreement HEAVYINDUSTRIES to buy 44Ishares held by governmentand 5X state-ownedDBS. MASSRAPID TRANSIT Transport Public offering/Sale of assets/ Capital: * 125n - In June, 1986Government announced its decision to haveMRTC work CORPORATION Managementcontract. (19B6) towards formation of a private companyto run the transit system. (2) Singaporeansand foreigners mill be invited to buy shares in a new company,the SINGAPOREMASS RAPID TRANSIT LTD (SMRT), which Nill own and operate the urban undergroundrailway (starting in December1987). Privatization will take place in 1992 wher rail systemwill be fully operational. - MRTCwould transfer managementand the railway assets to SMRTbut the 6overnmentwould keep a golden share. - Thepublic woill be allowed to participate in MRTCs ownershipthrough the use of Central Provident Fund savings and listing the the Stock Exchange. Even after the privatization, construction of new MRT lines will continue to be the responsibility of the MRTCwith its operations being kept distinct from construction of future lines. (2) COMPLETED:RANK HOVIS MCDOUGALL FoodPro-essing - TEMASEKsold 45% of its share. (1) NEPTUNEORIENT LINES Shipping Public offering. - TEMASEKsold shares in 1981(ii and will still reduce its stake (NOL) from 621 to 30X. t2) - NOLis treated as a national carrier in one country and as such cannot changetariffs as expeditiously as others not classified as national carriers, thereby NOLis competingat a disadvantage. Oneof the conditions for removingthe national carrier label is the reduction of Government'sstake to 300or less. SINGAPOREINTERNATIONAL Airline Public offering. Paid Capital: SS 620m- TEMASEKowns 63X and foreigners own20X of SIA. Since SIAwould have Ln AIR (SIA) (19B61 no problemwith landing rights so long as citizens and Governeentown 0" no less than 51X, foreign ownershipcan be allowed to increase so long as it does not exceed49X. TEMASEKis to sell 33Xof its stake. (2) - Several public offerings via international equity issues have been nade. TEMASEK'sstake is presently 63X to be reducedto 300. (2) - When6overnment disposed of shares of SIA,it wasdone in tranches and gave shareholders an undertaking that there will be a minimuminterval betweentranches. It was announcedthat for one year TEMASEKwould not sell moreSIA shares. (2) DEVELOPMENTBANK OF Banking Public offering. Paid Capital: SS291n - TEMASEKsold shares of DBSin the 1970s , retaining 480of shares, SINGAPORE(DBS) (1986) but wants to reduce it to 30X. (2) - DBSis a leading local bankthat is not dominatedby family or special interests groups. Plan is to divest 180of TEMASEKshares through public offerings or dilution through issue of newshares. (2) KEPPELCORPORATION, LTD. Shiprepair, Rig Public offering. Paid Capital: SS235e - TEMASEKsold shares of this SOEin the 1970sbut wants to reduce Building, etc. (1986) its stake from 68% to 30%. 381 is to be divested. (2) INTRACOLIMITED Trading Fire Public offering. Paid Capital: SS75e - A TEMASEKsubsidiary, it sold shares of INTRACOin the 1970's. TEMASEK (1986) is willing to sell all of its 27% stake. (2) - Recently, a public companymade an open bid for majority control of INTRACObut did not succeed. INTRACOis undergoingreorganization and consolidation Drior to sale. (2) UNITEDINDUSTRIAL CORPO- Detergent and Public offering. Paid Capital: SS159i - TEMASEKsubsidiary, governmentsold its 16.50 stake; UIC stock had RATION,LTD. (UIC) Property Company (1986) market listing prior to sale. Sold as blocks in the Londonmarket. - Objective was for UIC to withdraw from commercialactivities which no longer neededto be undertakenby the public sector. (2) NATIONALIRON AND STEEL Iron and Steel Public offering. Paid Capital: SS64B - TEMASEKsubsidiary, it sold its 19.7X stake; NISMstock had MILLS(NISMH (1986) market listing prior to sale. Sold as blocks in the Londonmarket. - Divestmentwas so arranged that DBSBANK succeeded TEMASEK as the dominantshareholder in NISM. (2) PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHDD/PRDCEDURE SIIE INDICATOR COMMENTS

DONTYAVIATION SERVICES Aircraft Paid Capital: Si 4e - TEMASEKsold its 6X shareholdino in the company.(2) Maintenance (19861 SINGAPORENATIONAL Printing and Public offering Paid Capital: Si 6e - IQOXowned by TEMASEK,it was listed in February, 1987,with TEMASEK PRINTERS,LTD. Publishing (1986) retaininr a 63Xstake. Recommendationwas to allow public to ownup to 49X in the first phaseof privatization and I10Xin the long run. (2) RESOURCESDEVELOPMENT Quarrying and Public offering. Paid Capital: St 9e - NNDHOLDINGS to reduce its stake to 302. CORPORATION(RDC) Construction (1986) - Listing of RDCin the exchangein January, 1987,with MNDHOLDINGS retaining a 302 stake only served to widen the Singaporestock warket through the secondarydistribution of government-ownedshares. (2J - RDC'sconstruction business has long beensubject of private sector criticism. (2) EDUCATIONALPUBLICATION Publishing Public offering. (2) Paid Capital: Si 1.6w - Entire 1002share of the Ministry of Education have beensold. (2) BUREAU,LTD. (1986) SETSCOSERVICES, LTD. Engineering Public offering. (2) Paid Capital: Si Im - 1002stake of JTChave been divested. (2) Consultancy (1986) SINGAPOREAIRPORT DUTY- Duty-free EwporiumPublic offering. Paid Capital: SN l.5m - Joint owners of SADEare SIA (802)and TEMASEK(202). On recomwenda- FREEEMPORIUM (SADE) (1986) tion of Privatization Coamittee, TEMASEKsold its stake to SIA. (2) PORTOF SINGAPORE GovernmentAgency Fragmentation/Lease. Total Assets: Si 3.48 - PSA is a steady money-earnerand evenmanaged to thrive the 1982 AUTHORITY(PS4) (1986) world-wide recession. It dowinates the Southeast's container trade. - Divestwentof 25Xof shares. - Oneof seven statutory boards considered for partial privatization. Apart fromprivatizing ownership, the board wayoffer scope for privatization of production and liberalization. (2) - PSAis inyolved in regulatory activities, infrastructure development, cargo handling and ancillary support activities. PSAhas already privatized parts of cargo handling and support activities. About half of its conventional berth are leased to shipping agents and will lease morewhen demand exists. PSAdoes not intend to privatize crucial L services as pilotage, water supply and port security but is prepared to privatize tug towage, bunkering, slop reception, ferry services and exhibition facilities under its ancillary services. (2)

(1) Divestiture of SOEsin LDCslop. cit.) (2) Report of the Public Sector DivestmentCommittee (2/87).

SOMALIA

COMIPLETED: n.a. State Farms Lease. - Fares are being leased to private farmers. n.a. Fishing Private sale/Joint venture. - Joint industrial fishing ventures were set up in 1994in response to privatization orogramof Sovernment.

Source: Divestiture of SOEsin LDCs(on. cit.)

SPAIN

- SeeVol. Il for a case study on Spain. PLANNED: IBERIAAIR Airline Private sale. 12) REPSOL EnergyHolding Public offering. Sales: Ptas 1,309B - Governeentplans to haveINH incorporated as a public limited Company (1985) cowoanyto offer the public up to 50Xof its share in several tranches HYTASA Textiles IMEPIEL ShoeManufacturing MERCORSA Agri-business TRANSMEDITERRANEA Shipping Public offering. - Selling 492 of equity at Stock Exchange. ALDEASA Retailing Public offering. - To be sold at Stock Exchangeand sell 49Xof equity. (1) COMPLETED:[GESA] Electricity/6as Public offering. - 382 of 6ESA'sshares is being offered for sale at the Madrid Stock Exchange,reducing state participation to 56X. PRIVATIZATIONTECHNIQUES COUNhRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

- 6ESAis controlled by INI(INSTITUTO NACIONAL DE INDUSTRIA).the state industrial holding company. RUMASAGROUP: nct ail incluslve! - See VolumeII. (3) HOTASA Hotel Chain Private sale. - See Volume11. (3) GALERIASPRECIADOS S.A. DepartmentStore Private sale. - See Volume11. (3) NANTEGUERIASLEONESAS FoodRetailing Private sale. Sale Price:; 4.2, - See VolumeII. (3) LOEWE FashionLeather Private sale. - See Voluee II. (3) Sherry Companies Sherry Producer Private sale. - See Volume11. (3) HispanoAlemana Const. Bldg. and Const, CoPrivatesale. - See VolumeII. BancoAtlantico Group Banks Private sale. - See VolumeII. Fenix Penangular Insurance Private sale. - See Volume11. Garvey Sherry Producer Private sale. - See Volume11. Ibernaves Shipping Private sale. - See VolumeII. INI GROUP: ENASA Trucks Private sale. - Sea VolumeII. (3) POSTASASDE NAVARRA Sale of assets. CSB Ball Bearings Sale of assets. - See Voluse 11. (3) TEXTILETARAZONA Textiles Private sale. - See Volume11. (3) MARSAN Touriss Private sale. - See volume11. (3) ENTURSA Catering Private sale. - See Volume11. (3) CESGUISA Pharsaceuticals Private sale. - SeeVolume 11. (3) INGENASA Biotechnology Private sale. - See VolumeII. (3) LA LUZ MeatProcessinq Private sale. - See Volume11. (3) I1FISA Frozen Food Private sale. - See VolumeII. (3) FRISA FoodDistribution Private sale. - See Voluse 11. (3) INDUGASA I INISA SECOINSA Coaputers Asset swap/Privatesale. - SeeVolume 11. (3) ( TELEFONICA TelecommunicationsPrivate sale. - SeeVolume 11. (3) Co SKF Ball Bearings Private sale. - Lack of technology and economiesof sCale madeINI decide tD sell 1D00 I equity to SKFAKTIEBOLA6ET (Sweden), the parent company.(I) SEAT(SOCIEDAD ESPANOLA Car Manufacturing Private sale. Assets: S 2.2B - See Voluae 11. (3) DEAUTOMOVILES TURISIO) (19B4) EIIPRESANACIONAL DE Electric Utility Public offering. - Offering of 20.4/ stake of INI. ELECTRICIDAD(ENDESA) [ENSERSA] Fertilizers Public offering. - Minority shares mere offered with objective to reducestate ownership to DUO. (I) [ENCE] Pulp and Paper Public offering. - Minority shares were offered with objective to reduce state ownership to 51D. (1I [INISEL] High Technology Public offering. - Minority shares mere offered with objective to reduce state ownership to 51x. (l) (SANCARLOS) 6oods Private sale. - Sold in 1VB7to a Danish group. PATRIMONIDGROUP: (TORRESDE JEREZ] Real estate Private sale. Sale Price: S 75.Om - Sold to HERONINTERNATIONAL (UK). (1) (BANCOATLANTICO GROUP] Bank Private sale. Sale Price: S 35.Om - Sold to ARABBANKING CORP. (Libya), BANCOEXTERIOR and BANCRARABE ESPANOL. (1) [FENIXPENINGULAR] Insurance Private sale. Sale Price: $ I.Om - Sold to ASSURANCESDEFRANCE. (I) [GARVEY] Sherry Wines Private sale. Sale Price: $ 5.Qn - Sold to COOPGROUP AG (Germany).(1) [IBERNAVES] Shipping Private sale. Sale Price: S 2.0r - Sold to NORDICINTERNATIONAL NAVIGATION. (1) (HISPANOALEMANA] Construction Private sale. Sale Price: S 6.Qe - Sold to TRANSWORLDCONSTRUCTION (6ermanyl. (1) (HILATURASGOSSYPIUM] Textiles

[WATERDISTRIBUTION Waterdistribution Managementcontract lease. - Water distribution systemsin several municipalities are handled SYSTEMS by private companiesunder managementcontracts and 'contrats d PRIVATIZATIONTECHNIOUES COMMENTS COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR affermage (and concessions).

(1) Privatization in Europe,Case of Spain )G.De La Dehesa). (2)Privatization W4orldwide- AdamSmith Institute 11986). (3)Case Study Voluse It.

SRI LANKA

- A case study on Sri Lanka is included in Vol. 11. - Draft legislation is underwayfor conversion of public corporations and 6OBUsi6overnment-Owned Business Undertakings) into jointstock comoanies. Leqislation has beenpassed on firstreading.

PLANNED: SRI LANKANTELECOMMUNI- Telecoamunications Private sale/Joint venture/ Revenues:Rs 1.12B CATIONSDEPARTMENT ManagementContract. i1964) (SLTD)

BRITISHCEYLON CORP. CoconutOil Mill Lease. STATETRADING 6ENERAL, TRACTORS, TEXTILES and CONSOLIDATED STATETRADING CORPORATION Trading Private sale. - Includes EXPORTS.Committee on Privatization proposedthat these corporations be converted into export-import trading houses. 14) - Privatization exercise classified it as profitable and can then be partly or wholly sold. 14) - Companiesorlginated frombilateral trading arrangements.(4) up LANKACHEMICALS from operations of PARANTHANCHEMICALS Cheeicals Private sale. - onvernmentintendsto set of SALTPARANTHAN and PAPERCORPORATIONS. CORPORATION PARANTHANto be madeup Equity basewould be private 1497) andgoverneents's (511). (5) in its institutional Strategy Studv to address LANKAELECTRICITY COMPANY Electric Power - ADBis a55unting LECO in noierdistribution and the desirability, (LECO) the role of government benefits and disadvantagesof private sector involvement. (6) II. STATERUBBER Rubber Sale of shares, - SeeVolume MANUFACTURINGCORPORATION SeeVolume II. NATIONALMILK BOARD Milkand Dairy Lease/Saleof shares. Workforce(1986) 1,60C- - Convertedinto a joint stock companywith equity participation to be CCMPLETED:AIR LANKA Airlu.,e Managementcontract. PRIVATIZATIONTECHNIQUES .OUliTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

openedto private and foreign ;nvestors. (2) - AIR LANKA(formerly AIR CEYLON)is aandgedby SINGAPOREAIRLINES. - Preliminary negotiations havebeen initiated by the governmentwith SASto reorganize AIR LANKA. SASis reported to have recommendedthat governsentshareholdings should be reducedto 40%. If SAS is to undertake a recovery operation, it is expectedto insist on nominating NATIONALTEXTILE CORP. - Thulhiriya Textiles Managementcontract. Workforce3,700 - See Volume11. - Pugoda Textiles Managementcontract. Workforce2,600 - See Volume11. - Veyangoda Textiles Managementcontract. Workforce1,9B2 - See Volume11. 60BUTILE FACTORIES - Vijaya Tile Works Tiles Private sale of assets. - See Voluse II. - ShamIndustries Tiles Private sale of assets. - SeeVolume 11. Noorani Tile Works Tiles Private sale ot assets. NorHiorce500 - SeeVolume 11. CWEHOLDING COMPANY - ComputerServices Computerservices Joint-venture/Nex private Workforce45 - See Voluae 11. investeent - CIE Printers Ltd. Printing Joint-venture/Sale of shares Workforce170 - See VolumeII. - LankaMilk Foods Dry milk packagingJoint-venture/Private sale Workforce380 - See Volume11. Of shares. CEMENTCORPORATION (CCC) Cement Managementcontract. Revenues:Rs 749.5a - LANKACEMENT, a subsidiary jointlyowned by CCC167%) and by public (1985) and private shareholders (f3%)has been created. - CCChas a profit sharing managementagreement with BLUECIRCLE. LANKACEMENT LTD. Cement Managementcontract. - Formedby CCCand external shareholders, it is trading at a loss even before depreciation and expensiveloans. It has a Profit Sharing ManagementSupport Contract with BLUECIRCLE. (3)

(1 Divestiture in DevelopingCountries (op. cit.) 0 12) Privatization (ADBConference). (3)Sri LankaCase Study - Volume11. (41 Sri LankaReport an Privatization (D. Heald). (5)Interview withMr. De Mel, President, ParanthanChemicals (1l/86). 161 ADDProposed Projects and Operations(1987).

SWEDEN

PLANNED: SWEDISHSTEEL AR Steel Public offering.

UNDERWAY:PROCORDIA Holding Company Public offering/New investment/ Profit: N 113a - Controls companiesoperating in pharmaceuticals, chesicals, catering Private sale. (19851 and tobacco industries. - Is to raise S 165oin nem eauity, reducing State's shareholding to 31%:40% is to be subscribed by four Swedishinstitutions, 20% is reserved forworkforce and 40% forprivate investors. KADIVITRUMAD OF Pharmaceuticals Private sale/Joint venture. STOCKHOLM - Cooperationventure have beenanproved by boards of KABIVITRUMand FERMENTAAB of STANSNAS(Swedish fine chemicalscoepany). - PROCORDIAcontrols KABIVITRUM. - Transaction includes sale of KABIVITRUM'ssubsidiary, KABIGENAB (genetic engineeringl} COMPLETED:LUXOR Electronics Private sale. - Sale to NOKIAof FPnland. PKBANKEN Bank Public offering. - 15%of PK BANKENwas placed in the stock market in 1984.

TAIWAN

- Land-to-the-Tiller iLTTT) Act of 1953mentioned four SUEdivested: T PRIVATI7A!ON TECCHNIUES CDUNTRY ENTERPP!SE ACTIVITY tETHDD/PRDCEDURE SIZE INDICATOR COMMENTS

THAILAND

oort facilities of PLANNED: PORTAUTHORITY OF Port Managementcontract/Private - Presently conducting a study for privatizing: THAILAND sale/Lease. Sattahip, deep-seaports at Lae* Chabangand Map Ta Put ports, Song- kkla and Phuket ports and other domesticports. (2) - Options being considered include managesentcontract, private sale via tenders from port facility users, granting of private treaty grants for exclusive users and leasing. - No single approachcould apply to all ports becauseof their differ- ingcharacteristics and degreesof development. A pilot privatization schesefor Sattahip on a modified turnkey basis has been proposed.(21

BANGKOKBUS COMPANY Bus Operation BANGKOKMASS TRANSIT Public Transport AUTHORITY ELECTRICITY6ENERATIN6 Power Public offering. AUTHORITYOF THAILAND to privatized. KRUNGTHAI BANK Commercialbank - The third largest commercialbank seemslikely be investment iv wmrtTmore than UNDERWAY:TELEPHONE ORGANIZATION Telephone Private sale. - BELLCANDADA. INTL.'s (SCI) proposed individuals. OFTHAILAND §4nDm. Majorcty holdirg mouldbe withThai companiesand - Jo;nt venture is for izeratior and expansionof Bangknk'stelephone nysteo. - SOEis lo be sold to DCIwith the newconpary to be formed via joint venture to be called TELESTAR. either lease ERANANHOTEL Hotel Lease/Private sale!Joitt - AMARINPLAZA, the Private developer has proposedto venture. hotel from governmentor to set up a new companyin joint venture with 0" government. TheINDUSTRIAL DANK OF JAPAN has also madean offer for renovations of the hotel. (2) - Finance ministry (major shareholder) does not intend more renovations and has suggestedthat AMARIN'soffer be considered. (2) operate plant. (2) COMPLETED:SOE ALUM FACTORY AlumFactory Lease/Private sale/Joint - PHAISARNwas given leased rights to venture. - Joint venture mith THAI ACIDINDUSTRY CO. and PHAISARMINDUSTRY in 1976. )l THAIINTL. AIRLiNES Airline Public offering.

(I) Divestiture in DevelopingCountries (op. cit.) (2)AEB. Privatization in DevelopingCountries: Experienceof Thailand (P. Pakkasee).

T060

- See VolumeII for a case study on Togo.

debt of state. Still active. PLANNED: PROJECTANANAS DE NOTSE Pineapple - Assets of TODDFRUIT. No relating CENTREARTISANAL D'AGAU- Art and Crafts - CAANis to be further analyzedregarding proposedaction. NYDOBOICAAN) Center IDTO. OFFICEDES PRODUITS Export Board Fragmentation. - Someactivities to be spun-off are HUILERIESTD60LAISE and of ADRICOLESDUTOGO As part of its reorganization and restructuring plans, soae its (OPAT) operations will be spun offfor privatization. - Most of OPATis to resain a state enterprise. HUILERIESTOOLAISES GroundnutMill Managementcontract. - Asset of OPAT. It has no state debts. - Governmenthas received proposal from an experiencedEuropean comnany to aerge and operate HUILERIESand IOTO. SOCIETENRATIONALE DES Pale Oil Mill - To be restructured prior to privatisation. HUILERIESET DE PALMERAIES(SONAPH) PRIVATIZATIONTECHNIGUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS ------_------_ ------NATIONALPRINTING COMPANY Printing Fragmentation/Saleof assets, Revenues:CFAF B57c - Press reporting activities will be seperated fromprinting activi- (EDIT060) (19B5) ties prior to sale. Printing wouldbe soldor subcontracted. SONATA CAISSED'EPAR6NE NATIONALSHIPPING COMPANY Shipping - SOEto be analyzedfor further specificaction. (SOTONAM) DA6UIDAPOULTRY FARM Poultry - SOEto be analyzedfor further specificaction. (FAD) 1060DEVELOPMENI COMPANY Services - SOEto be analyzedfor further specificaction. (SOTED) NATIONALDATA PROCESSING Data Processing - SOEto be analyzedfor further specific action. (CENETI)I TOO CONSTRUCTIONCOMPANY Construction - SOEto be analyzedfor further specificaction. (SITO) A6RICULTUREIMPLEMENTS Fare Isolecents Private sale. - UFROlMAvill be converted into a wixed enterprise with private share- COMPANY(UPROMA) holders and state management. FRUITPRODUCTION COMPANY Fruit Production Sale of assets. - Previously closed, it is to be reclassified for privatization. T3060- jTOOFRUIT) FRUITis still being operated. LE IOTEUR Engines Sale of assets. - Previously closed, it is to be reclassified for privatization. LE MOTEURis a possible restructuring candidate. NATIONALFOREST DEVELOP- Timber Development Management contract. - Governmentwill consider favorably proposal to combiningexperienced MENTCOMPANY (ODEF) canagementand eventual privatization. NATIONALCOLD STORES Cold Storage Managementcontract. - Governmentwill consider favorably proposal to combiningexperienced (ONAF) managementand eventual privatization. NATIONALINVESTMENT Finance Managementcontract. COMPANY(SNI) T060 DEVELOPMENTBANK Bank Managementcontract. (BTD) NATIONALLOTTERY (LONATO) Lottery Managementcontract. ) NATIONALFISHING COMPANY Fishing Managementcontract. UNDERWAY:T060 RECORD COMPANY RecordingStudio Sale of assets/Liquidation/ - T"ocompanies made a bid for OTODI. (OTODI) Lease. TOGOSALT MINING COMPANY Salt Mining Sale of assets. Revenues:CFAF 10c - SOEto be analyzedfor further specific action. SALINTO'smanagement (SALINTO) (1980) is under PROiOTEC,a orivate companywho also owns347.. - SALINTOreceived offers for purchase from BONELEC(Togolese/Beninese/ Nigerian) and ALBERCONSULTANTS 16erman). SOCIETENATIONALE DE Busoperation Private sale. Revenues:CFA 495c - Four interested parties have indicated their interests in acquiring TRANSPORTSROUTIERS 11985) T0SOVOUTEand their offers are being reviewed: Two initial offers were also received froma Swiss company and a local investor, TOGOTRANS. - Currently governmentis negotiating sale with a Danish company. - 6overnment'sinitial capital was 60%with remaining shareholders divided as: 1I% localentrepreneurs and 30% foreign (25%CAT, a RENAULT subsidiary and S% SAGA). SOCIETETOGOLAISE DE Iran sheets Private sale, Revenues:CFA 1.7B - No official proposals forpurchase have beenrecieved although a 6ALVANISATIONDETOLES (1985) numberof foreign and local potential investors haveexpressed (SOTOTOLES) interest. - Government'sinitial share capital was 50%. Remaining50% is ownedby SOCINVESTand other foreign private shareholders. (1l COMPLETED:SOCIETE TOGOLAISE DE Marble New Investment Revenues:CFAF 194 - SeeVolume II. MARBRESET MEATERIAUX (19831 (SOTOnA) INDUSTRIESDES OLEA- Cottonseed/Palm Sale of assets. Revenues:CFAF 742c - SeeVolume II. LINEUXDU TOGO (IOTO) (1982) TOGOTEXTILE INDUSTRY Textiles Sale of assets. Initial Equity: - SeeVolume 11. (DATCHA)(ITT) CFAF540c PRIVATIIATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

T060TEXTILE COMPANY Textiles Sale of assets. Initial Equity: - See Volume11. (KARA)(TOGOTEX) CFAF1.9B SOCIETEDETER6ENTS DU Oil Refining Sale of assets/NewInvestment. Revenues:$ 2.0c - See Volume11. T060 (SODETO) (1903) DAIRYPRODUCTS COMPANY Dairy Lease. Revenues:CFAF 174en - SeeVolume 11. (SOPROLAIT) (18921 SOCIETERATIONALE DE Steel Mill Lease. US$Turnover: $ 4.BA - See Volumeil. SIDERURGIE(SNS( 11905) ABRICULTUREEQUIPMENT Fare Equipment Lease. Revenues:CFAF 290m - SeeVolume 11. COMPANY(SOTEXMA) (1985) T060 OIL REFINERY(STH) Oil Refinery Lease. Revenues:CFAF 20.80 - SeeVolume 11. (1905) T060PLASTICS INDUSTRY Plastics Newinvestment. USSRevenues: l.5m - SeeVolume 11. (liP) (19803 [SOCIETET060LAISE DE Clothes/Apparel Lease/Saleof assets. - Assetsof SOTCONhave been leased temporarily to an expatriate African CONFECTION(SOTCON)I entreoreneurpending liquidation of the original companyand divestiture on a more enduring basis. Sale in the subject of negotiations with an American-basedclothing retailer with no previous African operational experience. Other offeres to acquire SOTCONwere received fromseveral Topolese and foreign parties. [HOTELDE LA PAIX] Hotel Managementcontract. [2 FEVRIERHOTEL] Hotel Managementcontract. Revenues:CFAF bS7c (1905) [SARAKAVAHOTEL] Hotel Managementcontract. [BENINHOTEL] Hotel Managementcontract. [TROPICANAHOTEL] Hotel Managementcontract.

TRINIDADAND TOBAGO c3

PLANNED: NATIONALFISHERIES Fishery Private sale/Lease. US$Loss: N 3.3Il?B51) TRINIDADAND TOBA60 Printing/Packaging Private sale, US$Loss: $ 1.7m(1905) PRINTINGAND PACKA6IN6 'RINIDADCEMENT COMPANY Cement Private sale. - SOEin a mature industry. Governmentto sell ownership (40U)and eventually to offerremaining 51X. TRINIDADAND TOBAGO Communications Private sale, - Governmentto sell off 49S to an appropriate foreign technical TELEPHONECOMPANY participant.

TUNISIA

COMPLETED:SITER Textile Newinvestment. - Subsidiary of SOITEX(state holding). - Assistance of IFC through GRIP(6uarranteed Recovery of Investment principal). SITEX Textile New investment. - Subsidiary of SO0ITEXtstate holding). - See Voluae I fordescription of transaction concluded with IFC assistance. Caoital increase to be followed by private sale and public offering of existing S061TEXholdings. HOTELULYSSE RE DJERBA Hotel Private sale. - Sold to a Tunisian-Germangroup. HOTELHANNIBAL Hotel Private sale. Proceeds:TDN 12c - Sale viapublic tender. It wassold to a localgroup. - Subsidiary of SOTIMACO MARBRERIEDETHALA Marble Subsidiary Sale of assets. - Sold to a private group supportedby a Tunisian-Saudi Arabian bank. FLUoBAR Mining Newinvestment/Private sale . - After write downof losses and capital increase, final shareholding is: 45X (Government:reduction of ownership from 951),391 (ARMICO Arab Mining Company),IlX (IFC). This is a first step to privatization and Governeentintends to go further in divestiture whensufficient levels of profitability and efficiency will possibly attract private PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

localinvestors. HOTELMIRAMAR Hotel Private sale. Proceeds: S T3.3 - Sold to a local bank (BTKD). SRT Transport Fragmentation - Freight operations have been hived off and partially privatized.

TURKEY

- 6overneenthas created a Public Housing and Public ParticiDation Administration (PPA) as instrument for privatization measures,under LamNo. 3291 of 1986. - A lawpassed on February, 1904encompasses provisions relative to: Issuing REVENUESHARING CERTIFICATES (to enable real and judicial persons to share revenuesof infrastructure facilities) for all types of infrastructure facilities ownedby public sector agencies, by organizations (Public EconomicOrganizations [PED]and SEEs)and by PEW'scospanies, plants and affiliated partnerships; Issuinq STOCK CERTIFICATESof PEOs and SEEs(to enable real and juducial persons to hold shares in abovefacilities); ASSIGNMENTOFTHEIR OPERATING LICENSES(right to operate facilites to real or judicial persons for specific periods and transfer right to market and distribute goods). - Several transactions are considered planned or underway,in respect of about 3V SOEsin sectors as diverse as tourism, telecommunications, tea processing, electricity, textiles, pulp and paper, motors, engineering, electronics, tiles, cement, mining, petro-chemicals, iron and steel, etc. - Reportedly being actively considered are: UNDERNAY:TURKISH AIRLINES (THY) Airline Fragmentation Assets: 411w - It was decided to create new companiesto embodydistinct activities (1985) or functions of THYand to privatize these entities prior to THY, c Separateactivities include USAS(already in existence) and BHT (see below) as mell as HAVAS. - Provides ground services, catering and busing at Turkish airports. UCAKSERVISI AS (USAS) Airline services - USAShas already been transferred to PPFAfor privatization. ODGAZICIAIR TRANSPOR- Air freight TATION(BHT) IGSAS Fertilizer PETKIH Petrochemicals Public offering. Profits: N 16.4m - Hasbeen transferred to the PPFAfor privatization. (1986) SUMERBANK Bankingand Public offering. Norkforce: 42,177 - Hasbeen transferred to the PPFAfor privatization. Textiles (1987) - SUMERBANKoperates more than 400 retail stores; also producescement, steel, shoes, paper, carpets and ceramics. It also consist of a banking network of 44 branches. TURKIYECIMENTO SANAYI Cement Workforce: 7,000 - Operates20 cementfactories, five factories are to be privatized: T.A.S. (1987) Afyon, Ankara, Balikesir, Pinarhisar, and Soke. Thesecement factories havealready been transferred to PPFA.

COMPLETED:NETAS TelecommunicationPublic offering. - Successful offering of minority shareholdings. TELETAS Telecom.equipeent Public offering. Sales TL 176b - Successful offering of minority shareholdings. 40X of the TL 14 billion paid in capital of TELETASwas held by an SUE,PTT (Turkish Post Office) and transferred to the PPA(see above). The PPAdecided to sell approximately 22%of the company'scapital. - Sale wasunderwritten. Offering mas over suscribed. Extensive distribution and publicity efforts mere deployed.

UGANDA

- Governmentis considering to further fully divest 15 comeercially- oriented non-industrial public enterprises and some03 industrial PRIVATIZATIONTECHNIOUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZEINDICATOR COMMENTS

Dublic enterprises. UGANDADEVELOPMENT CORP. is considerinq to fully divest or clcse some10 enterprises and to reduce itsmajority ownershipto a minority Position in 17 enterprises.

PLANNED: UGANDAMEAT PACKERS MeatPacking Private sale. - Governmentstrategy is to sell 100I.of SOEto Ugandannationals. UGANDABAGS AND HESSIAN Bags Private sale. ASSOCIATEDMATCH COMPANY Matches Private sale. CHILLIN6TONTOOL COMPANY Machine Tools Private sale. STEELCORPORATION OF Steel Private sale. EASTAFRICA COMPLETED:NATIONAL TEXTILE BOARD Textile Sale of assets. MEHTA6ROUP Re-privatizations/ - Governmenthanded back to the MEHTAGROUP on a joint venture basis Private sale/Joint venture, 49%of its holdings in: SUGARCORPORATION OF UGANDA, UGANDA ENGINEERINGCORPORATION, CABLE CORPORATION, UGANDA TEA CORPORATION. MADHVANIDROUP Re-privatizationlJoint venture. - Governmenthanded back 49%of STEELCORPORATION OF EAST AFRICA (operated by the Grouounder a joint venture with the Governnent), 84% of MUKOTEPTILE LTD, 75Tof ASSOCIATEDMATCH COMPANY, and 100%cf EhCD OIL REFINERY,MAHODANI SOAP INDUSTRIES, MULBOX LTD, EASTAFRICAN GLASS WORKS,EAST AFRICAN STEEL PRODUCTS, UGANDA METAL INDUSTRIES, IlLTYRES LTD,EMCO STEEL AND METAL COFPORATIDN. LONHROUGANDA LIMITED Re-privatization. - Sovernmertretornec 100%ownership of all LONRHOcompanies to the Group: CONSOLIDATEDPRINTERS, MOTOR MART UGANDA, EXPRESS UGANDA, JSANDACHIBUKU and PRINTPACKLTD. BRITISHAMERICAN TOBACCO Tobacco Re-privatication. - Governeentreturned 70Xof its holdings in BAT to the company, retaining 30%.Government receives a monthly renenuefroe BAT. DATASHOES LTD Shoes Re-privatization. - 6overnmentreturned 100Iof its holdings. MITCHELLCOTTS LTD Re-privatization/Joint venture. - Governmentretained 51X of the share capital.

U.K.

- TheUK privatizations are widely publicised. The reader is referred to 'Privatization in the United Kingdom- BackgroundBriefing,' H.M Treasury, for progress report and statesents of objectives.

PLANNED: ELECTRICITY Powerdistribution - Plans set out in 'Privatising Electricity- (Cmnd322) for England and Wales, and 'Privatisation of the Scottish Electricity Industry' (Cmnd3271. 12 Area boards in England - Area Boards to be privatised as separate companieswith obligation to and Wales supply control of the national grid, regulation and isposed standards of service (with compensationfor failure to meet them). 2 generating companiesin Powergeneration - Existing Central Electricity Generating Board to be split into two Englandand Wales generating companies. 2 Scottish boards Powerdistribution - Easier access to the grid expectedfor newprivate generators and generation providing coePetitior, in 80% of the costs of the industry; several powerschemes - eg ThamesPower - already announced'. BRITISHSTEEL CORPORATION Integrated Steel Assets: S 5.2B - Sharp improvementin its profits and financial position. Government (BSC) Maker 119841 has announcedintention of selling BSC as a whole to the private sector as soon as possible. Significant individual elementsof RSC already sold as joint ventures with the private sector. WATERCOMPANIES OF Water Distri- Public offering. - Firstof 10 water authorities could be listed on the stock market EN6LANDAND WALES bution around 1990. - Restructuring of the industry envisaged. National River Authority is to take over environmental service, pollution control, flood defense, water conservation, resource planning, fisheries and navigation. - Remainingauthorities will first be wade uiblic companies,then sold as entities, licensed to tarry out utility functions. PRIVATIZATIONTECHNIOUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

- 6overnmentnow has legislation to give authorities the necessary powers to prepare for privatization, CROWNSUPPLIERS Furniture and - 6overnmenthas announcedintention to privatise. transDort. - Someparts of organisation withsecurity isplications will remain in public sector. SamuelMontagu appointed to advise on eethod of sale, GENERALPRACTICE FINANCE Mortgage lending - 6overnmenthas introduced bill to turn corporation into Companies FINANCECORPORATION to doctors. Actcompany prior to sale. ROVER6ROUP Vehicle manu- - Conditional sale price St.150m. iacturer - British Aerosoacehave agreed to purchaseRover Group IRG), subject to EuropeanCommission and shareholdersapproval. - Termsof sale include GovernmentSt.800e. cash iniection to reduce RG's indebtedness,carry forward of tax losses reduced froa St. 1.6b. to St.500n., Governmentguarantees of RG's bankdebts (St. 1.6bh) withdrawnover period and BAe's agreementnet to relinquish either Austin Rover or LandRoverwithin 5 years. PROFESSIONALAND Recruitment Private Sale/Managementbuy-out. - Lloyds Bankare advising Governmenton feasibility and methodof sale. EIECUTIVEREGISTER consulting SCOTTISHBUS GROUP Fragmentation - Intention announcedof seeking early legislation to enable privatisation of SBGin about 10 units. LONDONBUS ENGINEERING Private sale. - Sale of BusEngineering Ltd., which provides aaintenanceto the bus fileet of LondonRegional Transport, is expected to be completedin 1980-89. Its main property holding is being sold separately. NATIONALGIROBANK Tradesale. - Girobank, the banking subsidiary of the Post Office, is to be privatised this autumn.Increased competition in banking sector I being one objective, sale to one of majorUK dealers not likely. Schroders advising Post Office, and Hasbrosadvising Government. ON NATIONALEN61NEERING Researchand - Organisations with experience in research and development,including ON LABORATORY Development the laboratory's staff, havebeen invited to submit proposals by 22 July. UNDERWAY: BRITISHRAIL ENGINEER- Railway Equipment Private sale. - Heavymaintenance and new build works not forsed into 'BREL08", which IN6 LTD. (BREL) Manufacturing will be offered for sale in 1900.Routine maintenancewill continue to be done by BR,

COMPLETED:BRITISH TRANSPORT Advertising Private sale. ADVERTISINGLTD. UK PLANTBREEDING Plant Breeding Private sale. - Sold to Unilever. INSTITUTE- NATIONAL - Governmentsold the units to a companyalready involved in agri- SEEDDEVELOPMENT culture supply industry and interested in building up its presence ORGANIZATION in seeds. ROYALNAVAL DOCKYARDS Dockyards Managementcontract - Manageris a private coopanyespecially formed for the purpose. ROVERGROUP: LEYLANDBUS Buses Esployeebuy-out. 0) Sale Price: St.40Om - Managementand employeeconsortium composed of 16Xemployees, 721 (1987) BankersTrust and Royal Bankof Scotland and 10 LancashireEnter- prises purchasedLEYLAND BUS. (7) Subsequentlysold by management and employeeconsortium to Volvo of Sweden. UNIPART Motor Parts Employeebuy-out. (1) Sale Price: St.30Om - Buy-out by U6CLTD. in 1987, a consortium formed by managersand (1987) employees.(6) BRITISHLEYLAND TRUCKS Trucks Private sale/Merger. Total Debts: St.750w - Mergerwith DAFtrucks (ownedby the Dutch group DAF)with ROVER group retaining 40Xo1 the new company,DAF BV. 08) DAB Buses Employeebuy-out. (0) Sale Price: St.7.Oa (1987) ISTEL CosputerServices Employeebuy-out. Sale Price: St.26Om - Managementbuy-out by ISTELGROUP LTD. with ROVERholding on to (1907) 25X. (1) SEALINK Harbor and Ferry Private sale. Sale Price: St.66.Oa - SEALINKhad 37 ships, on 24 routes, 10 harbor facilities, 10,000 Operation (1984) employeesand turnover ot 2bSmsterling. PRIVATIIArlONTECHNIDUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

- Interested purchasers wereEuropean Ferries, P & 0, Sea Containers, Trafalgar Houseand a consortium led by Charterhouseand including directors of SEALINK. - Purchasedin July 19B4by BRITISHFERRIES, a subsidiary of SEA CONTAINERS.Government retained a golden share with required ships to retain under the British flag.

ROLLS-ROYCEAERO AerospaceEngines Public offering. Proceeds:St. 1.40 - First stage of its privatization programwas to re-register ROLLS- EN6INECOMPANY (1987) ROYCEas a public limited companyand application to the court for confirmation of capital reduction. - Individual workers of ROLLS-ROYCEwere offered shares worth around St. 600 under the privatization program. - 0OIwshares were offered representing all of issued share capital of which 635wwere owned by the governmentand 166wwere newly issued shares. Governmentretained a special share. 18) BRITISHAIRPORTS Airports Public offerirg. Turnover: St. 294.0w - Privatization programbegan with creation of a single entity but AUTHORITY(B.A.A.I (1983) with each airport (seven subsidiaries) to run as a seperate company under the single holding cospany. - The next step of the programwas to makeB.A.A. a public limited companyprior to flotation of 550 sterling worth of shares and eventual privatization. - BAAowns and operates airports in Englandand Scotland: Heathrow, Gatwick, Stansted, Glasgow,Edinburgh, Prestwick and Aberdeen.(8) - 500Oshares representing all of the issued share capital were offered for sale. Up to 115wwere offered by way of tender and the balance at fixed price. 1B) - A special share was introduced in view of national interest. BRITISHAIRWAYS (BA) Airline Public offering. Proceeds:St. 900m - BA's privatization has demonstratedthat waiting for new management (1987) to improve its nerformancecan enhanceits market value. BA wassub- stantially restructured and profit earnings record improved Prior to privatization. - BA reducedits workforce from59,000 to 39,000 by the time it went to to the private sector in February 1987. They were not fired but attractive voluntary retiresent packageswere offered. (11) BRITISHAIRWAYS Helicopter Fleet Private sale. Sale Price: St. 13.5w - Purchasedby SDRHELICOPTERS which is jointly ownedby Robert Maxwell, HELICOPTERS (1980) the Scottish Daily Recordand the SundayMail. (8) ROYALORDNANCE Armsand Munition Private sale. - Two sales weremade: first on July 1986 to vICKERSwho purchasedthe (RC) Leedstank factory for St. 15.O (proceedsretained by R0) and the secondIn April 1907to BRITISHAEROSPACE wiho purchased the rest of RD forSt. 170.04. (Dl NATIONALBUS COMPANY BusOperation Employeebuy-out/Fragmentationf Sale Price: LSt.200m.- In November1986, governmentapproved 1907 incentive schemeto 560 (NBC) Private sale. (19871 staff which includes a share of profit or equity in line with government's privatization effort. - Last of 70 NBCoperating bus companiessold in March1988, eight monthsahead of statutory deadline. Mainaim of promoting competition has been achieved. Outof 70 sales, 40 went to management/employee buy-outs, including National Express, country's largest operator of express coach services. CABLEAND WIRELESS Telecomaunication Public offering. GrossProceeds: - Consisted of various issues: First issue in 1981for 1734 shares St. 830a (Since 1901) 149X); secondissue in 1983for lOOnshares (22X) and the third issue in 1985for 159mshares (31X). (8) BRITISHSUGAR PLC Sugar Refinery Private sale. Sale Price: St. 425w - Winning bid to GRUPPOFERRUZZI (GF), an Italian food & farms group (BS-PLC) (1906) who bought 70Xof BS-PLC. - Final sale represents end of long battle betweenGF and TATEAND LYLE,PLC to win control of BS-PLCwith both acquiring stakes in S & WBERISFORD, PLC (coumodity trading and processing group that owns PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY nETHOD/PROCEDURE SIZE INDICATOR COMMENTS

BS-PLCI. 6F acouired 241 whileTATE & LYLE,11, BRITISHTELECOM TelecommunicationPublic offering. Proceeds:St. 3.9B - BRITISHTELECOM is competingwith MERCURYCOMMUNICATIONS in a 11984) nuaber of sarket sectors. (2) - Special schemesin marketing and advertising Here used to entice telephone subscribers as part ot government'sstategy to prevent re- nationalization, e.g., telephone subscribers received vouchersoffer- ing a discount on telephone service if they bought sharesof BRITISH TELECOMand paymentof shares werespread over a period of time. (2) - Governmentgranted only one fire license to competewith BRITISHTELE- COM-- to MERCURYand announcedthat both would be protected from further competition for at least six years. 12) - First privatization of an entire statutory corporation. (3/41 - The telecommunicationsAct was passedin 1984. It provides for a new licencing systes and sets up the required regulatory office. The license granted to BRITISHTELECOM is for 25 years subject to revision on 10 years notice. 50.2Xof shares mereoffered on November 1984with 6B ordinary shares to the public and one golden share held by government. Over200,000 employeeshave taken up sharesand were granted special terms. (3/4) - BRITISHTELECOM is olaced under regulatory and other controls to complywith safeguards imposedby Act so as to ensure that it operates a public service in the public interest amongwhich no shareholder is to be allowed to have an interest in more than 151 of BRITISHTELE- COM'sshares; the governmentcan block changesto certain articles through the goldenshare. - 6overnnenthas statutory powersto license operator. (3/4) - Sale Df BRITISHTELECOM was not only the largest ever (until BRITISH csy GAS)and most successful public flotation in the world, it also lead O to a revolution in the developmentof telecommunicationsin U.Y, 010) - Most interesting changesare in the managementstructure and attitudes I of BRITISHTELECOM itself. (9) BRITISHGAS CORPORATION Gas Public offering. Equity: St. 5.4B - As part of restructuring in view of privatization, governmenthas B6G) (19B6) injected into the comnanya debentureof St. 2.5b, to be paid in stages by 1992. - 4B shares were issued representing 970 with remaining 30 reserved for eaployeesand share bonus. Governeentretained a special share and sufficient ordinary shares for loyalty bonusentitlements. (8) - GasAct 1986has been passed. A 'Director General of 6as Supply' has beennominated and a Gas ConsumersCouncil established. The Acthas provisions or authorizations to be given to 'public gas suppliers' and sets out their rights and obligations. A new British Gas public limited companywas incorporated under CompaniesAct 1985before 6as Actwas passed. (3/4) - British Gas' license sets regulatory regime for gas for a period of 25 years under the responsibility of the Director 6eneral. BG's interest in ONSHOREOn-shore oil Private sale. Sale Price: St. 82.0w- Sale agreewentprovided for further 130e sterling to be paid when OIL (WytchFarm) (1904) production reaches 20,000 Wd.Part of proceeds retained by B6 (5) tomeet costs and for liabilities. - Sold to DORSETBIDDIN6 ROUPcomposed of Tricentrol ¶17,50), Presier Oil (12.5X), Carless (7.5X), Clyde Petroleum (7.50) and British Coal (5X). NATIONALFREIGHT RoadHaulage Management/employeebuy-out. Sale Price: St. 6.5w - 4/5 of equity were bought in February1982 by companymanagers and COMPANY (187) workers who formeda managementconsortium (NATIONALFREIGHT CONSOR- TIUMplc). (8) - St. 7.0e net proceeds wererealized; St. 54.0.paid by purchaserless St. 47,0a paid via underfundedpension schemeby the governsent. (8) - 69 -

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_ I

0 1 PRIVATIZATIONTECHNIOUES COUNTRY ENTERPRISE ACTIVITY IETHOD/PROCEDURE SIZE INDICATOR COMMENTS

St. 998n (Since 1982) 511 of shares weresold at 2.15 sterling/share ($3) in November1982. Governsentsold 49% in August1985 on a fixed price offer retains soecial share to prevent unacceptablechanges in control. (5) - In the secondstage of privat4zation, 48.9%was offered at a fixed price On July 1985 for St. 450e. BRITISHRAIL HOTELS Hotels Fragmentation/Saleof assets/ Total Sale Price: - 10 hotels were sold under tender arrangementsfor 2Bm sterling; eight Private sale. St. 45.0Q(1983) of the remainderwere sold immediatelyby private treaty arising out of tender for4.6a sterling (including twosold on short leases); two of the remaining three mere sold for a total of 5.2csterling. Remaininghotel wasdisposed under separate arrangementswhich were not disclosed. - Total proceedsof sale were in excessof pre-tender valuation. BRITISHRAIL HOVER- Hovercraft Employeebuy-out/Give-away. - Mergerof BRHLwith a major competitor and significant efficiency CRAFTLTD. (BRHL) Service gains; managecenthas beenallowed to buy out mergedcompany. - Forierly ownedjointly by BRITISHRAIL and a Swedishfirm, each half transferred its share to a consortiuo for the sumof one poundster- ling in February1984, thus giving awaya state operation to its employees. Newlyprivatized firm called HOVERSPEEDis a privately- ownedfirm running on a commercialbasis. (10) ASSOCIATEDBRITISH PORTS Ports Public offering. - Gross proceedsfrom sale amountedto St. 22w in the first offering in 1983and St. 52c in the secondoffering in 1984. (8} - 51.5%of governmentstake wasoffered in 1983and 48.5 in 1984. ENTERPRISEOIL North SeaOil Public offering. Proceeds: St. 392m - 212c shares were offered representing all of issued share capital. (8) (1984) - Governmentretained special share, which is redeemedat the end of 1988 except in special circumstances. (5) INTERNATIONALAERADID Communication Private sale. Sale Price: St. 60,Ow- Private sale to STANDARDTELEPHONE AND CABLE in March1983 with (1983) proceedsretained by British Airways. (5) - AERADIDis a subsidiary of BRITISHAIRWAYS. 38 freeway service stations weresold off. (10) ° North SeaOil Licences Oil Licenses Private sale. - Sale of special licensing rounds. Governmentholds auction for license blocks. Wherethis happenscash premia fromauction are treated as privatization receipts. (5) 3AGUAR LuxuryCars Public offering. Proceeds:St. 294n - 17i ordinary shares representing 99%of issued share capital was (1984) offered with remaining shares reserved forpurchase by trustees of JAGUAREmployee Share Scheme. Governmenthad a special share. (8) JABUARis a subsidiary of BL. (5) BRITISHTECHNOLOGY 6ROUP HOLDINGS (BTG): INTERNATIONALCOMPUTERS Computers Private sale. - 25Xholding by BT6sold to institutional investors in Decenber LTD. 1979. (5) PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHODIPROCEDURE SIZE INDICATOR COMMENTS

FAIREY Specialized Engi- Private sale. - 100Iholding sold to DOULTON,a subsidiary of S Pearsonand Company neering in June 1980. (5) FERRANTI Electric!Electro- PrIvate sale. - In 1978FERRANTI was introduced to the stock exchangeand National nic Engineering Enterprise Board offered 2.71 of its ordinary stock to stockholders reducing holding from 63Xto 50X. In 1980 remaining 50Xwas sold to institutional investors. 18) INMOS Silicon Chip Private sale. Sale Price: St. 95.Om 75X B16holding sold to THORMEMI in August 1984. (5) (1984) BRITISHSHIPBUILDERS: BROOKEMARINE LTD. Shipbuilding Managesentbuy-out. (8) Sale Price: St. 0.lm (1986) YARROWSHIPBUILOERS LTD. Shipbuilding Private sale. Sale Price: St. 34.0m- Purchasedby 6EC. (8) (1985) vOSPERTHORNYCROFT LTD. Shipbuilding Managementbuy-out. (8) Sale Price: St. 18.5r (1985) SWANHUNTER SHIPBUILDERS Shipbuilding Managementbuy-out. (B) Sale Price: St. 5.0m LTD. (1986) HALLRUSSELL LTD. Shipbuilding Private sale. Assets: St. 3.0a - Purchasedby ABERDEENSHIPBUILDERS LTD. which was formed for the (1984) purchaseof HALLRUSSELL. (1) VICKERSSHIPBUILDING AND Shipbuilding Managementbuy-out. Assets: St. 42.0, - Sale included CAMMELLLAIRD yard. 18) EN61NEERIN6LTD. (1985) - Purchasedby VSELCONSORTIUM plc, a managementconsortium of which 202 is employeecapital, 80X is Lloyds Bank and institutional shareholders' capital and a further St. 40a unsecuredloan placed by Hoare 6ovett. (8) - Gross proceedsis St. 6Qaplus deferred paymentsof St. 40s related to future profits. (8) - Sale of VICKERSin 1986was interesting becauseit xas awardedto the secondhighest bidder. Trafalgar Houseput in the top bid, but a -I- consortiumheaded by managementand participation of workforce, local F banks and membersof the coacunities were the ships were built, won I the award. (10) SCOTT-LITHSON Shipbuilding Private sale. - Sold this biggest loss-makeryard to TRAFALGARHOUSE. (10) BRITISHSHIPYARD Shipyard Employeebuy-out. Sold to employeesand included newmethods of purchase, including REDHEAD special loars and extended paymentsales. (6)

(;) Public Money. (2) ABNEconoeic Review. (3) Privatization British Telecom(W. Jenkins). (4) Privatization of British Telecon (J. Kay), (5)Privatisation in the UK. H.M. Treasury, BackgroundBriefing. (6) Privatization Worldwide- AdamSmith Institute (1986). (7) TheFuture of Privatization (M.Pirie and P. Young). U8)Privatization TheFacts - Price Waterhouse(1987). (9) Privatization (A.Walters). :10) l'.K. Exper;encein Privatization (M. Pirie).

- Mixedenterprises occupya political and econamicno-man's land in the US. 12 corporations affiliated with federal governmentare private- non-profit corporations (Corp. for Public Broadcasting, Legal Services Corp., National Park Foundation, National HomeOwnership Foundation, Securities Investor Protection Corp. and the USRailway Ass.) and private for-profit corporations (Fannie Mae, Conrail, Comsat,Amtrak, Sallie Mae, and National Corporation for HousingPartnerships). (1) - Administration's privatization campaignis part of the president's PRIVATIZATIONTECHNIQUES COUNTRY ENTERPRISE ACTIVITY METHODIPROCEDURE SIZEINDICATOR COMMENTS

'EconomicBill of Rights' which calls for Congress'to prune judi- ciously from the gcvernment what which goes beyond the proper real. of the state.' - President Reagan created in September 1987 the President's Cosmission on Privatization (12 members) to identify federal functions that would be carried out by private business. The Commissionhas received a broad mandate to explore areas where services could be more efficient- ly offered by the private sector. A particular attention to the social implications as well as the financial rewards will be given. Public housing, prisons and sedical insurance are amongthe areas where a transfer or responsibility from Government to the private sector are considered by the Commission, amongothers.

PLANNED: HELIUIlEXTRACTION AND - Discussion occuring for transfer to private ownershin of the helium STORAGE extraction activities. (3) URANIUMENRICHMENT Uranium - The creation of a governmentcorporation with private sector financing ASSOCIATES and managementor creation of a wixed government/private sector corporation is being decided upon. SIGNALCOMPANY Public Service STUIDENTLOAN MARKETING Finance ASSOCIATION (SALLIEMAE) FEDERALNATIONAL MortgageFinance - FANNIEMAE's stock is traded in New-York. MORTGAGEASSOCIATION - Priveleges given to Fannie Mae (no effective compet;tion, federal (FANNIEMAE) economicsupport and exemptionfrom state taxes and SECrequirements) permit it to borrow funds at lower than private corporations with AAA rating thereby increasing its profits. (1) - Federal Governmentappoints several of the board membersand there are restrictions on loans allowed to buy. - Governmentstill retains a N 2.25B line of credit in FANNIEMAE, - The Departmentof Housing& UrbanDevelopment has called for FANNIE MAE'scomplete privatization but officials at FANNIEMAE think Congressis unlikely to privatize soona systemwhich is working well GOVERNMENTNATIONAL MortgageFinance MORTGAGEASSOCIATION (GINNIEMAE) FEDERALHOME LOAN MortgageFinance - Purposeof privatization is to reducegovernment activity in the MORTGAGECORPORATION industry. Task force created to study FREDDIEMAC concludedthat (FREDDIEMAC) conversion of companywithout reducing role of FANNIEMAE wouldnot help primary lenders and might hurt the value of FREDDIEMAC's share. - FREDDIEMAC woaschartered in 1970and its stock is ownedby 12 Federal HomeLoan banks; membersare federally insured loan institutions. - Plan is to split FREDDIEMAC into a smaller governmentoperation and makeit into a fully privately-run entity FEDERALHOUSING Housing Private sale. - A task force advised the White Housein January 1907against selling ADMINISTRATION(FHA) FHAbecause it is unlikely that the private sector could fill the gap created by the absenceof FHA. NATIONALRAILROAD City Transport Public offering. AverageLosses: - Not a private corporation in the sense of private ownership for pro- PASSENGERCORPORATION S 200.Omper year fit. It is a quasi public corporation and the major question that (AMTRAK) faces it is what level of deficits are acceptable to maintain its service. (I) - Administration wants to sell profitable portions of AMTRAKpending its ability to operate in the black. LANDSAT Land Sattelite Federal Lands Lands Private sale. - Land in western states, including 86%of NEVADAand 47%of CALIFORNIA have been proposed(2) but governmenthas only been selling small PR!VATIZATIONTECHNIQUES COUNTRY ENTERPRISE PCTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

portions thus far. (3) NAVALPETROLEJr RESERVE Petroleum Reserve Private sale. TENNESSEEVALLEY Private sale. AUTHORITY USPOSTAL SERVICE Postal System Private sale. - Portions of the Post Office systemis being considered for sale. (2) BONNEWILLEPOWER PowerDistribution RDMINISTRATION FEDERALPOWER MARVETINE Power Distribution ADMINISTRATION SREATPLAINS COAL GASIFICATIONPROJECT UNDERWAY:NATIONAL COOPERATIVE Bank - Originally created ir 1978, it is in the process of makur,ta transi- B4NK tion from a governmentagency to private sector status. CONTINENTALILLINOIS CommercialRank Public offering. Assets: $ 3V.0R - FDICwould sell 50n nhares of CONTINENTALbut would retain IUm, (1901) shares. Sale represents first step in returning ownershipof the bank to the private sector. - First step toward returning control back to the Private sector. FDIC still controls 107.5mshares and has a lien on 40mshares ownedby old shareholders. COMPLETED:COMMUNICATIONS SATTELITE Communication Fragmentatior/Saleof assets! Loss: N 04.0Q(1905) - COMSATis being restructured that willleave it with mainly its CORPORATION(COMSAT! Sattelite Private sale!Lease. regulated business which markets access to the International Telecom- municationsSattelite Organization (INTELSAT)to US companies. Restructuring calls for shutting downor selling COMSAT'sunregulated business that werenot profitable. It will begin by selling off the remaining manufacturingbusiness. - COMSATsold several small, unprofitable telecommunicationequipment manufacturingsubsidiaries. It has also negotiated a sale with CONTEL of an international telephone and data communicationssubsidiary, and a subsidiary makingearth stations for private data networks. - Private sale of shares of equipmentof the defence electronics industry to TRIAXCORP. I - 5-7 years leasing contract to AT A T (satellite circuit). CONSOLIDATEDRAIL Freight Transport Public offering. Proceeds:N 2.0B - Initial public stock offering of 58.75mis the largest in US CORPORATION(CONRAIL) (1987) history with 25 companiessubmitting proposals to participate in underwriting. - Therewas a previous proposal to sell CONRAILto Norfolk Southern Corporation for N 1.2B, later raised to N l.9M, was approvedby Senatebut stalled in Housewhere it was criticized for being anti competitive. Bid wasalso opposedby management.Offer was with- drawnin late August. - Northeast Rail Service Act of 1901provided forsale of Conrail's commonstock (previously ownedby governmentas settlement for assets of bankrupt railroads), links profitability status withtiming and form of sale and assures profitability by repealing labor-protection agreements,relieving Conrail of inter city passengerservice, exeopt- tion from taxes and allowing Conrail to abandonmarginal lines. (1) - Sale of shares of CONRAILrepresents 05X governmentownership with remain:ng05Z to be ownedby employees. Various Airport Landing Public Service Private sale. (31) Rights

(1)Uncle Sam'sProfit SeekingCorporations (L. Musol'). (2)Divestiture of SUEsin LDCs'op. cit.' (') Interview with Mr. R. Nelson, U.S. Presidential Commissionon Privatization (I10. PRIVATIZATION7ECHNI!6JE^ COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATOR COMMENTS

VENEZUELA

- By 1987, the state owned367 SOEs.The state also holds various levels of shares in other companiesand entities. In addition, there are companieswhich should theoritically comeunder the public sector given their dependenceon state credits.

PLANNED: CORPORACIONVENEZOLANA Holding Company - Six cozpanies are for sale (sugar sills). DEFOMENTO (CVF) CONAHOTUCHAIN Hotels - 14 hotels are possibly for sale. n.a. Cement CEMENTOSANDINOS Cesent UNDERWAY:PUERTO ORDAZ PLANT Direct Reduction Lease. - Theplant wasestablished in the early 1970s,but its plant technology Iron Plant wasimpractical then. It was losing soney and was eventually closed in 1980. KOBESTEEL LTD. and MIDREXCORPORATION entered into an agreementto torm the leasing company,OPCO to lease the plant froe the Government for 11 years. OPCOwill refurbish, rehabilitate and managethe olant befnre turning it back to its present owners.

WESTERNSAMOA

PLANNED: WESTERNSAMOA TRUST Estate ManagementPrivate sale/Joint venture, - Governmentin 1984undertook a major study for reorganization of ESTATESCORPORATION WESTEC.Purpose of study is to iaDroveWESTEC's managerial and (WESTEC) financial performance. 8ROADCASTINGDEPARTMENT Public Service PUBLICWORKS DEPARTMENT Public Works - Activities for nossible Privatization are: mechanicalworkshop, building section, transport pool, rubbish collection and joinery section, '- POSTOFFICE AND TELECOM- Public Service - Activities for possible privatization are: Post Office Savings MUNICATIONSDEPARTMENT Dank, telecoeaunications and philatelic. AGRICULTUREDEPARTMENT Government Office - Possible activity for privatization is food processing laboratory. TREASURYDEPARTMENT GovernmentOffice - Activities for possible privatization are: printing, boatcraft, the TanumalaPlantation and numismatic. SPECIALPROJECTS DevelopmentCompany DEVELOPMENTCORPORATION HANDICRAFTCORPORATION Handicrafts ELECTRICPOWER Power CORPORATION SAMOAFOREST PRODUCTS Forest Products SAMOAVENEER PRODUCTS Forest Products NEW SAMOAINDUSTRY Manufacturing WESTERNSAMOA SHIPPING Shipping CORPORATION SAMOASHIPPING Shipping SERVICES,LTD.

ZAIRE

PLANNED: PETROZAIRE Oil Company COMPLETED:AIR ZAIRE Airline Managementcontract, - Managedunder contract by a French airline. (2) COMPAGNIEMARITIME Shipping Managementcontract. - Managementcontract signed with a Belgius specialist comPany. ZAIROISE(CMZ) Restructured wwith help of a foreign company.(2) n.a, Palmoil Managementcontract. (1) naI Coccoa Managementcontract. (I) na, TeaOperation Managementcontract. (0) 6HELL-ZAIRE GasDistribution Private sale. - 20/ of shares sold in 1905 reducing government'sshare to 40f.(2) PRIVATIATIONTECHNIOUES COUNTRY ENTERPRISE ACTIVITY METHOD/PROCEDURE SIZE INDICATDP CDMMENTS C---C------s - - - -- Mana_--ent beentur_ed- over-to-t_i-b- _anage-ent _otract------_ A--roup _a- CACAEZA Agri-business Managementcontract. - Managementhas been turned-over to the BEhBAgroup. PALHEZA Aqri-business Managesent contract. -Mlanagesenthas been turned-over to the BEI5BAgroup. SODIMIZA CopperMining Managementcontract. - Managementcontract signed with a Canadianspecialist company.

(1 Divestiture in DevelopingCountries (op. cit.) (2)Divestiture of SOEsir LOCs(op. cit.!

ZAMBIA

- Several SDEsreportedly to be olaced under managesentcontract. UnderDresent governmertpolicies, not expected to lead to privatization of ownership.

COMPLETED.ZAMBIA BREWERIES Lager Beer Managementcontract!New Revenues;Kw 42,b - Managementcontract signed with HEINEKEN,who has invested fresh investsent. (1984) equity to rehabilitate ZAMBIABREWERIES. (31 NITROBENCHEMICALS Fertilizers Managementcontract. Revenues:Km 64.7e - Managementcontract signed with SNAMPROGETTI(Italy) in 19B6for the OFZAMBIA (1984) rehabilitation of NITROGENCHEMICALF. (3) - Part of the INDECOgroup, it has beensteadily unprofitable. (3) UNITEDMILLING COMPANY Flour Milling Managementcontract. Revenues:Kw D.lm - Contract signed with PREMIERMILLING COMPANY of South Africa. (19184) - Part of the INHECOgrcup, it has beensteadily unprofitable. (1) CHILANSACEMENT, LTD. Cement Managementcontract. Revenues:Kw 32.7m - Contract signed with IRISH CEMENTin 1978. (I) li9B4) - Havebeen outinto voluntary liquidation becauseof large recurring losses. INDENIPETROLEUM OilRefinery Managementcontract, Revenues:KW IQ.Ds - Contract signed with ASIP PETROLI,spa (Italy) in 1978. (1) REFINERYCOMPANY, LTD. (1984) ZAMBIAAIRWAYS Airlines Managesentcontract. (2) Revenues:Kw 98.;s (1984)

(I) ManagementContracts fop. cit.) (1)Legal FraseworkGoverning Public Enterprise in DevelopingCountries (C. Vuylsteke). (3)Public Enterprise Desandfor Managementin Sub-SaharanAfrica (1986). - 76 -

PART II

REFERENCE MATERIALS

Part II of this volume contains a systematic listing of some of the reference materials used in the preparation of Volume I. The listing of particular materials does not imply acceptance of analysis or recommendations made therein. It does indicate that useful elements with respect to various techniques were found in them.

A. General

- Asian Development Bank. Conference on Privatization: Policies. Methods and Procedures. Papers presented, and Summary of the Proceedings, at a conference organized by the Asian Development Bank, January 31 - February 1, 1985, in Manila, Philippines. Manila: Asian Development Bank, 1985. - Austin, James E.; Wortzel, Lawrence; and Coburn, John F. "Privatizing State-Owned Enterprises: Hopes and Realities". Columbia Journal of World Business. Fall 1986, pp. 51-60. - Aylen, Jonathan. "Privatization in Developing Countries". Lloyds Bank Review, No. 163, January 1987, pp. 15-30. - Belassa, Bela. Public Enterprise in Developing Countries: Issue of Privatization. Development Research Department. Discussion Paper, No. 292. Washington, D.C.: World Bank, May 1987. - Berg, Elliot, and Shirley, Mary. Divestiture in Developing Countries. Washington, D.C.: World Bank, 1985. - Brick El Hannachi, Salah. "Report of the Privatization Conference." Summary of proceedings of the Tunisia Conference on Privatization held at Gammarth on April 20-25, 1987. Institut Superieur de Gestion, Universite de Tunis, 1987. (Manuscript). - Croisset, Charles de; Prot, Baudouin; and Rosen, Michel de. D6nationa- lisations: les lecons de l'4tranger. Paris: Economica, 1986. - Diner, A., and Tricou, J. "Les procedures de privatisation". Bacngue, No. 467, D6cembre 1986. - Financial Times Survey, September 16, 1987. Eight pages on several privatizations in U.K., France, Spain. - Fariborz, Ghadar; Hensley, Matthew L.; and White, Thomas H., editors. Privatization for DeveloDment: Strategies and Techniques. Washington, D.C.: International Management Center, International Law Institute, Georgetown University, International Negotiation and Development Sourcebooks on Policy and Practice, 1987. Series of articles dealing with privatization in theory and practice. - 77 -

Graham, Cosmo, and Prosser, Tony. "Privatising Nationalised Indus- tries: Constitutional Issues and New Legal Techniques". The Modern Law Review, Vol. 50, No. 1, January 1987, pp. 16-50. Hamid, Naved, and Ijaz, Nabi. "Privatizing the Financial Sector in LDC's: Lessons of an Experiment". The Lahore Business School and the World Bank, December 1986. Hanke, Steve H., ed. Privatization and Development. San Francisco: International Center for Economic Growth, 1987. Series of articles on various aspects of privatization by Steve Hanke; Gray Cowan; Peter McPhearson; Elliot Berg; Robert Poole; Manuel Tanoira; Lance Marston; Peter Thomas; Ted Ohashi; Pedro-Pablo Kuczynski; Roserdo Castillo; Gabriel Roth; Ian Marceau; Lawrence White; Madsen Pirie and Peter Young; John Redwood; Mehmet Bilgic and Donald Shay. Hanke, Steve H. "Privatization: Theory, Evidence and Implementation". In: Control of Federal Spending. Edited by C. Lowell Harriss. New York: Academy of Political Science, 1985. Hanke, Steve H. "Strategies Employed in Successful Privatization Efforts: Rx. for Privatization". Paper presented at the Inter- national Conference on Privatization, sponsored by the U.S. Agency for International Development, Washington, D.C., February 17-19, 1986. Heald, David. "The Relevance of UK Privatization for LDCs." Univer- sity of Glasgow, 1988. Revised version of paper originally presented to the Conference on Privatization of LDCs, held on 16-17 Decem- ber 1986, at the International Development Center, University of Manchester. Heald, David. "Privatisation: Policies, Methods and Procedures", pp. 57-107. In: Conference on Privatization: Policies. Methods and Procedures. Manila, Philippines: Asian Development Bank, 1985. Heald, David. Public Expenditure. Reprinted. Oxford: Basil Blackwell Ltd., 1987. See particularly, Chapter 13: Privatization.

Hemming,- Richard, and Mansoor, Ali M. "Privatization and Public Enter- prises". Occasional Paper No. 56, 1986. Washington, D.C.: Inter- national Monetary Fund. 3Johnson,Gordon O.F. Privatization in Developing Countries. (State- ment for President's Commission on Privatization, January 8, 1988). Washington, D.C.: Center for Privatization, 1988. Letwin, Oliver. "Privatising the World: A Study of International Privatization in Theory and Practice". N.M. Rotschild and Sons Limited, London, 1987. (Forthcoming). Nankani, Helen B. "The Rhetoric and Reality of Privatization: Recent Experience and Emerging Perspectives". Paper prepared for the IFC for an OECDE Conference, April 1988. Paul, Samuel. "Privatization and the Public Sector". Finance and Development, No. 22, December 1985, pp. 42-45. Pirie, Madsen. Dismantling the State: The Theory and Practice of Privatization. Dallas, Texas: The National Center for Policy Analysis, 1985. "Privatisation: Everybody's Doing It, Differently". The Economist, December 21, 1985. "Privatizing the Public Sector: An Initiative for Service and Savings". The State Factor, American Legislative Exchange Council, Volume 12, No. 2, January 1986. - 78 - Rapp, Lucien. Techniques de privatisation des entreRrises publigues. Fondation nationale pour le droit de l'enterprise. Collection "Actualit6s de droit de l'entreprise". Paris: Libraries Techniques, 1986. Revue de droit des affaires internationales, No. 3, 1987: Finance- ments internationaux. Various articles by MM. Lucien Rapp, Lorenzo D. Weisman, Olivier d'Ormesson, Philippe Marcilhacy, Frank-Emmanuel Dangeard, and Jean Loyrette dealing with international aspects of privatization, including placement of shares in foreign capital markets. Savas, Emmanuel S. Privatizating the Public Sector: How to Shrink the Government. Chatham, New Jersey: Chatham House Publishers, Inc. 1982. Shearson Lehman Brothers Inc. Preliminary Thoughts on a Privatization Strategy. Presentation Materials: New York: Shearson Lehman Brothers, October 1986. Implementing A.I.D. Privatization Objectives. Washingtong D.C.: Agency for International Development (AID) Policy Determination, No. 14, 1986. Private Enterprise Development. U.S.A.I.D. Policy Paper (Revised). Washington, D.C.: U.S. Agency for International Development (AID), March 1985.

USAID.- Summary of the Proceedings of the Pacific Conference on Priva- tization and Investment. Hosted by USAID/South Pacific Regional Development Office in Fiji, and held in Sigatoga (Fiji) on February 2-6, 1987. Vernon, Raymond. A Technical Approach to Privatization Issues: Coupling Project Analysis with Rules of Thumb. Washington, D.C.: Economic Development Institute, April 1987. Vernon, Raymond. Economic Criteria for Privatization. Washington, D.C.: Economic Development Institute, April 1987. Walters, A.A. "Privatization", March 1987 (Manuscript). Walters, A.A. "Privatization: Some International Issues", August 19, 1987 (Manuscript). Paper presented at the Fifth Annual Convention of Private Argentine Banks, Buenos Aires, August 24-26, 1987. Waters, Alan Rufus. "Privatization: A Viable Policy Option?" In: Conference on Privatization: Policies. Methods and Procedures. Manila, Philippines: Asian Development Bank, 1985. "Who's Selling What, and Where?" Euromoney, December 1987, pp. 89-97.

B. By Country or Regionl

African Countries

- Mertz, Robert A. "Public Enterprise Demand for Management in Sub- Saharan Africa". International Finance Corporation, June 1986. - Nellis, John R. Public Enterprises in Sub-Saharan Africa. Discussion Paper No. 1. Washington, D.C.: World Bank, 1986. (see in particular, section on Divestiture, pp. 42-49). - Ramandham, V.V. "Privatization in the African Context". Paper presented at the conference on "State Shrinking: A Comparative Inquiry into Privatization", University of Texas, Austin (Institute of Latin American Studies), March 1-3, 1984.

N1/ Not including country reviews and case studies included in Volume II of - 79 -

Asia

- Rafferty, Kevin. "Asian Development Bank: Giving a Boost to Privati- zation". Institutional Investor, No. 19, April 1985, pp. 187-188.

Bangladesh

- Chisty, Shamsul Haque. "Privatization in the Bank's Developing Coun- tries: The Experience of Bangladesh". In: Privatization: Policies, Methods and Procedures. Manila, Philippines: Asian Development Bank, 1985. - Lorch, Klaus. "Privatization in Bangladesh". Kennedy School of Government, Harvard University. Fall 1986.

Belgium

- Escarmelle, Jean-Francois and Hujoel, Luc. "Privatization and Deregu- lation: Its Implementation in Belgium". Annals of Public and Co- operative Economy, No. 2, April-June 1986, pp. 253-273. - "Privatization: State-Owned Concerns". Kredietbank: Weekly Bulletin, No. 40, October 25, 1985, pp. 1-5.

Brazil

- Abranches, Sergio H. State Enterprises and Modes of Privatization: A Critical View Based on Brazilian Examples. Instituto Universitario de Pesquisas do Rio de Janeiro, Sociedade Brasileira de Instruccao, # 27, Junho 1984. - Centro de Ci&ncias juridicas e econ6micas. Crise urbana e a privatizacao dos servicos pffblicos (Textos apresentados no seminario). Rio de Janeiro: Universidade Federal do Rio de Janeiro, Decania do Centro de Ciencias Juridicas e Econ6micas, 1987. - FundacAo Centro de FormagAo do Servidor Puhblico (FUNCEP). Estatizacao ou Privatizacao. Seminario Internacional: Os Limites da Intervencao do Estado. Brasilia: Funcep, 1987. - Ness, W.L. "The Destatization Program of the Brazilian Government". Paper prepared for the World Bank, Washington, D.C., December 1984. - Revista Bolsa, editor. Privatizacao. mercado de capitais e democracia. Rio de Janeiro: Sindicato Nacional dos editores de livros, mar9o 1988. See particularly, Chapter 6: "Brasil: a hora da decisao."

Canada

- Associate Minister for Finance and Privatization. "Privatization of Quebec Government Crown Corporations. Progress Report". March 1987. - Baldwin, John. "Privatization of Air Canada". In: Papers on Privati- zation, edited by W.T. Stanbury and Thomas E. Kierans. Montreal, Quebec: Institute for Research on Public Policy, 1985, pp. 141-166. - Clark, Edmund W., "The Why, Who and How of Privatizing Canadian Crown Corporations". (Draft paper). - Donaldson, Robert A., and Ross, Donald C. "Privatization from a Canadian Perspective". Paper presented at the International Bar Association Conference in New York, September 1986. - 80 -

Gray, Herb. "New Legislative Proposals for the Control and Account- ability of Crown Corporations". March 1984. Hart, John W. "The Process of Privatization". In: Papers on Priva- tization. Edited by W.T. Stanbury and Thomas E. Kierans. Montreal, Quebec: Institute for Research on Public Policy, 1985. Heaver, Trevor D. "Transport Regulation and Privatization in Canada". Presented at the Canada-UK Colloquium on Privatization and Deregulation in Britain and Canada held at Gleneagles, Scotland, on November 2-4, 1987. Kierans, Thomas E. "Commercial Crowns: The Canadian Situation Calls for Privatization if Necessary but not Necessarily Privatization". Policy ORtions Politics, Nov. 1984, pp. 23-29. Kierans, Thomas E., and Stanbury, W.T., editors. Papers on Priva- tization. Montreal, Quebec: Institute for Research on Public Policy, 1985. Contains papers and commentary presented at a conference organized by the Institute for Research on Public Policy held in Toronto, Feb. 22-23, 1985. Includes "Crown Corporations Mixed Enter- prises and Privatization, a Bibliography", by W.T. Stanbury. Maule, Christoper M. "Privatization - The Case of the Urban Trans- portation Development Corporations Ltd." Business Quarterly, November 1987. Hawe, C.J., and Paterson, N. "Privatization: The Case of the Urban Transportation Development Corporation Ltd." Business Quarterly, November 1987. Ohashi, Ted M. "Privatization: The Case of British Columbia". In: Privatization and Development, pp. 189-194. San Francisco: Interna- tional Center for Economic Growth, 1987. Ohashi, Ted M. and Roth, T.P. Privatization: Theory and Practice. Vancouver: The Fraser Institute, 1980. "Privatization and Deregulation in Britain and Canada". Colloquium held in Gleneagles, Scotland on November 2-4, 1987. Sponsored by: Depart- ment of Internal Affairs, Canada; Foreign and Commonwealth Office, United Kingdom and Imperial Trident Life.

Roman,- Andrew J. "Regulation, Deregulation, Competition and Privati- zation". Notes for an address to the Canada-UK Colloquium on Priva- tization and Deregulation in Britain and Canada, held at Gleneagles, Scotland on November 2-4, 1987.

Chile

- Corporaci6n de Fomento de la Producci6n de Chile. "Return of Enter- prises and Assets to Private Ownership", 1973-1978. - Marshall, Jorge, and Montt, Felipe. "Privatization in Chile". Departa- mento de Economias, Universidad de Santiago de Chile. (Study commis- sioned by LCPPS.)

Cote d'Ivoire

- Alayer, Christian d'. "Cadres et patrons: comment le capital d'une entreprise africaine passe aux mains de ses salaries". Jeune Afri-que Economie, No. 55, January 24, 1985, pp. 58-59. - 81 -

Federal Republic of Germany

- Barbe, Andre, and Messier, Jean-Marie. "Les privatisations en RFA". In: Croisset, Charles de; Prot, Baudoin and Rosen, Michel de. Denationalisations: les lecons de l'etranger. Paris: Economica, 1986, pp. 47-68.

France

- Balladur, Edouard. Je crois en 1thomme. plus qu'en l'Etat. Paris: Flammarion, 1987. - Baudeu, Guy. "Les privatisations - Reglementations et premieres operations". Banque, 1987. - Bance, Philippe, and Monnier, Lionel. "The Privatization of Public Enterprises in France". Annals of Public and Co-operative Economy, No. 2, April-June 1986, pp. 181-203. - Bazex, Michel. "L'ebauche du regime applicable aux operations de privatisation". Note sous C.E. 2 fevrier 1987. L'Actualite juridicue. Droit Administratif, No. 5, 20 mai 1987, pp. 350-358. - Borde, Dominique, and Toffler, Sharon. "Privatizations in France." International Business Lawver, April 1988, pp. 155-160. - Credit Agricole: The green bank will be a special case. International Banking Report, Vol. 19, No. 12, 19 June 1987. - Droit et pratigue du Commerce international, Vol. 13, No. 3. 1987. Various articles on french privatization. - Dumas, Gerard,and Le Moullac, Denis. "Le rachat des entreprises par les salari6s: le point de vue du banquier". Bangue, No. 453, Septembre 1985, pp. 805-810. - "France Sells Off State Assets". International Financial Law Review, November 1986, Vol. V, No. 11, pp. 11-13. - "French Bank Privatisation: grandeurs et servitudes". Banker Inter- national, No. 9, November 1987, pp. 4-6. - Loyrette, Jean. Denationaliser: comment r6ussir la privatisation. Paris: Dunod, 1986. - Marquadt, Alexander. "France Privatizes Finance and Industry". International Financial Law Review, November 1986, Vol. V, No. 11, pp. 11-12. - Marsh, David. "Winds of Change". The Banker, April 1985, pp. 85-95. - Pene, Didier. "La privatisation en France". L'Actualit6 iuridiaue. Droit Administratif, No. 5, 20 mai 1987, pp. 291-302. - Rapp, Lucien. "Le secteur public francais entre nationalisations et privatisations". L'Actualite juridigue. Droit Administratif, No. 5, 20 mai 1987, pp. 303-308. - Raynaud-Contamine, Monique. "L'application du droit commun aux privatisations." L'Actualite juridique. Droit Administratif, No. 5, 20 mai 1987, pp. 309-313.

Ghana

- Tidlburg, Netherlands, BMB Management Consulting for Development. "Study of the Public Enterprise in Ghana" (Draft Final Report). Vol. I: The SOE Sector in Ghana. August 1985. - 82 -

Grenada

- Management Analysis Center, Inc., Washington, D.C. "Privatization: A ComprehensiveApproach. The Case of Grenada". Presentationto Malcolm Butler AA/LAC., October 17, 1985. Various paging. - Shay, Donald. "Privatization: The Case of Grenada". In: Privati- zation and Development, pp. 204-209. San Francisco: International Center for Economic Growth, 1987.

Italy

- Lizza, Emilio. "The Privatization of State Holdings in Italy up to 1984". Annals of Public and Co-operative Economy, No. 3, July- September 1986, pp. 315-343. - Pera, Alberto. "FinancialAspect of the Privatizationof Public Enter- prises: The Case of Italy". May 1986 (Manuscript). Preliminaryof a paper prepared for the Seminar on "Italian Financial Markets" at the Salomon Brother Center for the Study of Financial Institutionsof the Graduate School of Business of New York University. - Pera, Alberto. "The Privatizationof Public Enterprises in Italy: The Case of IRI" (Manuscript). Paper prepared for IRI presentation at the World Bank, February 19-20, 1987. - Pontarollo, Enzo. "Effects of Substituting Political Objectives for Business Goals". In: State Investment ComRanies in Western Europe (Chapter Two), pp. 25-58. - Stefani, Giorgio. "Privatizing Public Enterprises in Italy: The Case of State Holdings". Annals of Public. Social and Co-operative Economy, No. 2, April-June 1986, pp. 231-251.

Jamaica

- JNIC Divestment Task Force (Jamaica). Divestment Program: Proposed ImplementationApproach. August 1984. - Kennedy, Peter J. "State Shrinkage: The Jamaican Experience". Paper presented at the Conference on "State Shrinkage: A ComparativeInquiry into Privatization", University of Texas, Austin Institute of Latin American Studies, March 2, 1984. - Leeds, Roger S. Privatization in Jamaica: Two Case Studies. Cam- bridge, MA: Harvard University, Center for Business and Government, December 1987. - National Investment Bank of Jamaica Ltd. Prospectus on N.C.B. Group Share Offer, 1986. Accompanying pamphlet on questions and answers about the share offer. - Redwood, John, and Letwin, Oliver. "New Directions in Privatization". N.M. Rotschild & Sons Limited, London, 1986 (Manuscript).

Japan

- Bulter, Walter. "Les denationalisationsau Japon". In: Croisset Charles de; Prot, Baudoin and Rosen, Michel de. Denationalisations: les lecons de l'6tranger. Paris: Economica, 1986, pp. 19-45. - Sato, Seizaburo. "Privatization in Industrialized Countries: The Experience of Japan". In: Privatization: Policies. Methods and Pro- cedures. Manila, Philippines: Asian DevelopmentBank, 1985. - 83 -

Kenya

- Ochieng Odoyo, Peter. "The Development of Privatization and Divesti- tures: The Case of Kenya" (Manuscript).

Korea

- Koo, Bon-Ho. "Privatization in the Bank's Developing Countries: The Experience of the Republic of Korea". In: Privatization: Policies. Methods and Procedures. Manila, Philippines: Asian Development Bank, 1985.

Malaysia

- Abdullah, Hashir H. "Ports and Privatization: Case Study. Pri- vatization of the Container Terminal of the Kelang Port Authority of Malaysia". Paper presented at the Pacific Conference on Privatization and Investment, Suva, Fidji, 2nd to 6th February 1987. - Government of Malaysia. "Guidelines on Privatization". Economic Plan- ning Unit, Prime Minister's Department, Kuala Lumpur, January 1985. - Caplan, Basil. "Malaysia: Growth with the Brakes On." The Banker, 1982, pp. 35-41. - Chen, Dato Michael. "Keynote Address". Paper presented at the Pacific Conference on Privatization and Investment, Suva Fidji, February 1987. - Datao Seri Raddin; Soenarno Al-Haj; and Zainal Aznam, Yusof. "Priva- tization in the Bank's Developing Countries: The Experience of Malaysia". In: Privatization: Policies. Methods and Procedures. Manila, Philippines: Asian Development Bank, 1985. - Economic Planning Unit, Prime Minister's Department. "Guidelines on Privatization". January 1985. - Leeds, Roger. The Shifting Balance Between Public and Private Respon- sibilities. Cambrige, MA.: Harvard University. Center for Business and Government. (Forthcoming Spring 1988). - Li Shui-Hua. "Malaysia Privatization Program Creates Joint Venture Opportunities". East Asian Executives Reports, February 1985, pp. 23-24. - Ministry of Finance. "Privatization". Undated (1983?). - "Open Books, Skies Closed". Far Eastern Economic Review, October 1985. - Permadalan Nasional Berhad. "Mobilisation of Buniputra Savings in Malaysia Through the National Unit Trust Scheme (Sekim Amarah Saham Nasional)". - Quek Peck Lim. "Why Malaysia Means Business". Euromoney, Feb- ruary 1985, pp. 58-64.

Nigeria

- Omokhodlon, Lawson. "To Sell or Not to Sell". This Week, Sept. 15, 1986, pp. 14-20. - "Restructuring the Nigerian Economy: The Place of Privatization". Papers and proceedings of a national seminar on privatization, Kano, 1986. Organized by Securities and Exchange Commission. - 84 -

Pakistan

- Iqbal, Zafar. "Privatization in the Bank's Developing Countries: The Experience of Pakistan". In: Privatization: Policies. Methods and Procedures. Manila, Philippines: Asian Development Bank, 1985.

Samoa

- Marston, Lance, and Thomas, Peter. Privatization Handbook for the Government of American Samoa. American Samoa Government, June 1985.

Saudi Arabia

- Dalmoak, Michael. "Stock Market: Boost from Privatization". The Banker, No. 135, April 1985, p. 49.

Spain

- La Dehesa, Guillermo de. "Privatization and Foreign Investment". Paper presented at the Symposium on Privatization organized by the World Bank and the IRI in Rome. Manuscript dated November 1986.

Sri Lanka

- Ileald, David. "Report on Privatization in Sri Lanka". July 1986. - fJayasinghe,Indrance. "Privatization in the Bank's Developing Coun- tries: The Experience of Sri Lanka". In: Privatization: Policies. Methods and Procedures. Manila, Philippines: Asian Development Bank, 1985. - Wiss, Marcia A., Esq. "Divestiture of State-Owned Enterprises in Sri Lanka". Anderson & Pendleton, Chartered Attorneys, Washington, D.C., June 6, 1985.

Thailand

- Phisit, Pakkasen. "Privatization in the Bank's Developing Countries: The Experience of Thailand". In: Privatization: Policies. Methods and Procedures. Manila, Philippines: Asian Development Bank, 1985.

Taiwan

- Humphrey, Clare E. "Divestiture of State Enterprise in Taiwan: A Case Study on Economy in Transition". A Report submitted to the Graduate School, U.S. Department of Agriculture, for USAID, Washington, D.C., June 20, 1983.

TOIO

- Hirschoff, Paula, M. "The Privatization Drive". Africa Report, July- August 1986, pp. 89-92. - Societe Togolaise de Siderurgie, S.A. Prospectus d'offre par souscrip- tion publiaue. In Annex I, Summary of Convention and Lease between the Republic of Togo and STS. - 85 -

Turkey

- Bilgic, Mehmet. "Privatization: The Case of Turkey". In: Privatiza- tion and Development, pp. 195-204. San Francisco: International Center for Economic Growth, 1987. - Leeds, Roger S. Turkey: Implementation of a Privatization Strategy. Cambridge, MA.: Harvard University, Center for Business and Govern- ment, December 1987. - "Privatization: A Turkish Case Study". Barron's, Special Advertising Section, July 11, 1988.

United Kingdom

- Baker, A.W., and Daniel, G.H. "BNOC and Privatization - The Past and the Future". Journal of Energy and Natural Resources Law, Vol. 1, No. 3, 1983, pp. 149-150. - Beesley, Michael, and Littlechild, Stephen. "Privatization: Prin- ciples, Problems and Priorities". Lloyds Bank Review, No. 149, July 1983, pp. 1-20. - Brech, Michael, and Whiteman, John. "Financing Nationalised Indus- tries: A Third Way". Public Money, No. 2, December 1982, pp. 13-17. - British Telecommunications plc. Offer for Sale of Ordinary Shares. 1986. (Prospectus). - Bonpaire, F. "La privatisation de 'British Telecommunications'". Banque, No. 467, D6cembre 1986, pp. 1088-1090. - Brown, Andrew C. "For Sale: Pieces of Britain". Fortune, Octo- ber 31, 1983. - Buckland, R., and Davis, E.W. "Privatization Techniques and the PSBR". Fiscal Studies, Vol. 5, No. 3, August 1984, pp. 44-53. - Buckland, Roger. "The Costs and Returns of the Privatization of Nationalized Industries". Public Administration, Vol 65, Autumn 1987, pp. 241-257. - Bulter, Eamonn. "How the Thatcher Revolution was Achieved". In: Pri- vatization: The Proceedings of a Conference hosted by the National Center for Policy Analysis and the Adam Smith Institute, pp. 25-34. Edited by John C. Goodman. Dallas, Texas: National Centre for Policy Analysis, 1985. - Bulter, Stuart. "Applying the British Model: Case Histories". In: Privatization. The Proceedings of a Conference hosted by the National Center for Policy Analysis and the Adam Smith Institute, pp. 41-50. Edited by John C. Goodman. Dallas, Texas: National Centre for Policy Analysis, 1985. - Carsberg, Bryan, and Lumby, Stephen. Privatizing British Airports Authority: Policies. Prospects. Procedures. A Public Money Publica- tion, General Series: 4, 1984. - Clementi, David. "Privatization in Industrialized Countries: The Experience of the United Kingdom". In: Privatization: Policies. Methods and Procedures. Manila, Philippines: Asian Development Bank, 1985. - Coopers & Lybrand. "Financial and Consulting Services Related to Privatization". - Hammond, E.M., and Helm, D.R. "British Gas: Options for Privati- zation". Fiscal Studies, 26 March 1985, pp. 1-30. - 86 -

Hartley, Keith. "Policy Towards Contracting-out: The Lessons of Experience." Paper presented at a Conference held in London on November 3rd, 1983, and organized jointly by the Institute for Fiscal Studies, the Industrial Economics Study Group, the Social Science Research Council and the Public Sector Study Group of the SSRC. Fiscal Studies, 5:1, February 1984. Heald, David. "Privatization: Analyzing its Appeal and Limitations". Paper presented at a conference held in London on November 3rd, 1983, and organized jointly by the Institute for Fiscal Studies, the Industrial Economics Study Group, the Social Science Research Coun- cil and the Public Sector Group of SSRC. Fiscal Studies, 5:1, February 1984, pp. 36-46. Heald, David. "Privatization and its Political Context". University of Glasgow, Scotland, 1987. (Forthcoming 1988) in Symposium in Western European Politics. Heald, David. "Performance Measurement of Public Enterprises: Resolv- ing Conceptual Issues". Paper presented at the 43rd Congress of the International Institute of Public Finance (IIPF), on Public Finance and the Performance of Enterprises, held in Paris on August 24-28, 1987. Heald, David. "Conference on Privatization: Policies, Methods and Procedures". Paper presented at a Conference on Privatization held on January 31 - February 1, 1985 in Manila, Philippines.

Heald,- David, and Steel, David R., editors. Privatization Public Enterprises: Options and Dilemmas. London: Royal Institute of Public Administration, 1984. Heald, David A., and Steel, David R. "Privatizing Public Enterprises: An Analysis of the Government's Case". Political Quarterly, 1982, Vol. 53, pp. 333-349.

Heald,- David, and Steel, David R. "Privatizing Public Enterprise: The Record of the U.K. Conservative Government, 1979-83". Paper presented to the Research Conference on" State Shrinking: A comparative Inquiry into Privatization", held at the University of Texas, Austin under the auspices of the Institute of Latin American Studies and the Centro de Estudios de Estado y Sociedad (Buenos Aires), 1-3 March, 1984. Heald, David. "Will the Privatization of Public Enterprises Solve the Problem of Control?" Public Administration, Spring 1985, Vol. 63, No. 1, pp. 7-22. Heald, David. Public Exp,enditure. Reprinted. Oxford: Basil Blackwell, Ltd., 1987. See particularly, Chapter 13: Privatization. Her Majesty's Treasury. Privatization in the United Kingdom. Back- ground Briefing. May 1986. Various pagings. Her Majesty's Treasury. "The Success of Privatisation: Government Involvement in State-owned Business to the Nearly Halved". Mr. John Moore, M.P., Financial Secretary to the Treasury's speech for the opening of Haoare Govett Ltd's new city dealing rooms, 17 July 1985. Jenkins, W.B. "Privatization - British Telecommunications". Paper prepared for the 21st Conference of the International Bar Association, New York, September 1986. Kay, John; Mayer, Colin; and Thompson, David, editors. Privatisation and Regulation: The UK Experience. Oxford: Clarendon Press, 1986. Kay, John. "The Privatization of British Telecommunications". In: Privatizinz Public Enterprises: Options and Dilemmas, pp. 77-85. Edited by David Steel and David Heald. London: Royal Institute of Pubic Administration, 1984. - 87 -

Klein, Rudolf. "Privatization and the Welfare State". Lloyds Bank Review, 1984. Littlechild, S.C. Rezulation of 'British Telecommunications' Profit- ability. London: Department of Trade and Industry, 1983. Littlechild, S.C. "Privatization: Notes on the U.K. Experience". In: Papers on Privatization. Edited by W.T. Stanbury, and Thomas E. Kierans. Montreal, Quebec: Institute for Research on Public Policy, 1985. "Making the Modern Dinosaur Extinct". The Economist, February 23, 1985, pp. 76-79. Mayer, Colin, and Meadowcroft, Shirley. "Selling Public Assets: Techniques and Financial Implications". Fiscal Studies, No. 6, November 1985, pp. 42-56. Pirie, Madsen. "Privatization Techniques and Results in Great Britain". In: Privatization: The Proceedings of a Conference hosted by the National Center for Policy Analysis and the Adam Smith Insti- tute, pp. 11-24. Edited by John C. Goodman. Dallas, Texas: National Centre for Policy Analysis, 1985. Pirie, Madsen. Dismantling the State: The Theory and Practice of Privatization. Dallas, Texas: National Center for Policy Analysis, 1985. FPirie, Madsen. Privatization in Theory and Practice. London: Adam Smith Institute, 1985. Pirie, Madsen, and Young, Peter. "The Future of Privatization". Research prepared for the Adam Smith Institute, 1982. Posner, M. "Privatization: The Frontier between Public and Private". Policy Studies, Vol. 5, 1984. "Privatization: Don't Just Sell, Compete". The Economist, No. 283, August 27, 1983, pp. 35-36.

"Privatization:- Everybody's Doing it Differently". The Economist, No. 297, December 21, 1985, pp. 76-86. Privatisation in the United Kingdom. Background Briefing. Edited by Her Majesty's Treasury, May 1986. (This information package explains what privatization means in the United Kingdom context, what has been achieved up to the end of 1985, and what is planned for the future. It also sets out to answer the questions that are most commonly raised by visitors and other enquirers about the UK experience so far.) Redwood, John. "Privatization: The Case of Britain". In: Privati- zation and Development, pp. 181-188. San Francisco: International Center for Economic Growth, 1987. Savas, Emmanuel S. Privatizing the Public Sector: How to Shrink Government. Chatham, New Jersey: Chatham House Publishers, 1982. Savinson, Richard. "Privatization of Public Utilities in the United Kingdom". Paper prepared for the 21st Conference of the International Bar Association, New York, September 1986. Shackleton, J.R. "Privatisation: The Case Examined". National West- minster Bank Q.R., May 1984, pp. 59-73. Starkie, David, and Thompson, David. Privatising London's Airports. London: Institute for Fiscal Studies, 1985. Veljanovski, Cento. Selling the State: Privatization in Britain. London: Weidenfeld and Nicolson, 1987. - 88 -

Webb, Michael. "Privatisationof the Electricity and Gas Industries". In: Privatizing Public Enterprises: Options and Dilemmas, pp. 87-99. Edited by David Steel and David Heald. London: Royal Institute of Public Administration,1984. Yamey, Basil, and Stafford, David. Report on the Experience of Priva- tization in Great Britain. Direzione Centrale Studi e Strategie sulle Privatizzazioni. Rome: Istituto di Ricierca Internazionale (IRI), June 1986. Yarrow, Ness. "Privatization in Theory and Practice". Economic Policy: a European Forum, April 1986, pp. 324-377.

United States

- Fisk, Donald; Kiesling, Herbert; and Muller, Thomas. Private Provision of Public Services. An Overview. Washington, D.C.: The Urban Institute,May 1987. - Goodman, John C., ed. Privatization: the Proceedings of a Conference hosted by the National Center for Policy Analysis and the Adam Smith Institute. Dallas, Texas: National Center for Policy Analysis, 1985. - Goodman, John C. "Privatizationin the U.S.: Why It Is Happening and How It Works". In: Privatization: the Proceedings of a Conference, hosted by the National Center for Policy Analysis and the Adam Smith Institute, pp. 35-40. Dallas, Texas: National Center for Policy Analysis, 1985. - Hanke, Steve H. "Privatization: Theory, Evidence and Implementation". Academy of Political Science Proceedings, Vol. 35, No. 4, 1985, pp. 101-113. - Musolf, Lloyd. "Uncle Sam's Private, Profitseeking Corporations: Comsat, Fannie May, Amtrak and Conrail". - Poole, Robert W., Jr. "Objections to Privatization". Policy Review, Spring 1983, No. 24, pp. 105-119. - Privatization Toward More Effective Government. Report of the Presi- dent's Commission on Privatization. March 1988. - Shearson Lehman Brothers, Inc. "Case Study on Conrail". 1987.

C. By Areas and/or Technigues of Privatization

Competition.Regulation and Privatization

- Davis, Evan. "Express coaching since 1980: Liberalisation in practice". Fiscal Studies, 5:1, February 1984, pp. 76-86. - Forsyth, Peter. "Airlinesand Airports: Privatisation,Competition and Regulation". Fiscal Studies, 5:1, February 1984, pp. 61-75. - Kay, John; Mayer, Colin; and Thompson, David, editors. Privatisation and Regulation:The UK Experience. Oxford: Clarendon Press, 1986. - Sharpe, Tom. "Privatisation, Regulation and Competition". Fiscal Studies, February 1984, pp. 47-60. - 89 -

Management Contracts

- Brooke, Michael Z. Selling Management Services Contracts in Inter- national Business. London: Holt, Rinehare and Winston Ltd., 1985. - Hegstad, Sven Olaf, and Newport, Ian. Management Contracts: Main Features and Design Issues. Industry and Finance Series. Washington, D.C.: World Bank, 1987.

Employment Issues/Management Employee Buvouts

- Benjamin, Harvey E., and Goldberg, Michael. Leveraged Acquisitions and Buvouts. 1986. New York: Practising Law Institute, 1986. - Blackstone, Lance, and Franks, David V. Management Buy-outs. 1984 Edition, Special Report No. 164. London: The Economist Intelligence Unit Limited (EIU), March 1984. - Blackstone, Lance, and Franks, David V. Guide to Management Buy-Outs 1986-1987. "The Economist" Publications. - Bradley, Keith, and Gelb, Alan. "Employee Buyouts of Troubled Com- panies". Harvard Business Review, September-October 1985, pp. 121-130. - Bradley, Keith, and Gelb, Alan. Worker Capitalism: The New Industrial Relations. Cambridge, Mass.: The MIT Press, 1983. - Hay Group. "Privatization and Employment Policy: Issue Analysis". Report prepared for the U.S. Agency for International Development, June 1987 (Manuscript). - Droit et pratigue du commerce international, Vol. 13, No. 4, 1987. Various articles on french privatization. - "Management Buy-outs". Financial Times, October 10, 1986. A Financial Times Survey (Series of Articles). - Morgan Grenfell & Co. Ltd. "An Introduction to Management Buy-Outs", March 1986. - Oakeshott, Robert. "Privatization and Worker Buy-outs". Public Money, No. 3, December 1983, pp. 15-18. - Wright, Mike and Cayne, John. Management Buy-Outs. London: Croom Helm, 1984.

Financing Privatization

- Buchheit, Lee C. "Converting Sovereign Debt into Equity Investments". International Law Review, September 1986, pp. 10-14. - Gill, David. "Privatization: Opportunities for Financial Market Development". Paper presented at a Conference on Privatization held in Buenos Aires, Argentina, on April 27, 1987, and sponsored by Banco General de Negocios S.A., First Boston International and International Finance Corporation. - Nair, Govindan, and Frazier, Mark. "Debt-Equity Conversion and Priva- tization". Economic Impact, No. 4, 1987, p. 12-17. - Ollard, William. "The Debt Swappers". Euromoney, August 1986, pp. 68-75. - Rubin, Steven M. "Guide to Debt Equity Swaps". Special Report No. 1104. New York: Economist publications Ltd. - Werrett, Rosemary. "Brazilian Debt-Equity Swaps". Corporate Finance, September 1987, No. 34, pp. 89-92. - 90 -

Privatization of Public Services2

- Adam, Sylvie; Petit Frere, Jessy; Faccini, Bruno; and Cervantes, Enrique. "Paris privatise-t-il? La distribution de l'eau en question". Memoire ecrit sous la direction de M. Jean-Marie Duffau. Paris: Institut International d'Administration Publique, 1986. - Bennett, James T., and Johnson M.H. Better Government at Half the Price: Private Production on Pubic Services. Ottowa, Illinois: Cardire House Publishers, 1981. - Cheret, Ivan. "Private Sector Role in Provision of Water Supply and Sanitation: Alternative Approaches". La Lyonnaise des Eaux, for World Bank Seminar, January 1985. (See Section 3.2 on Spain). - Duffau, Jean-Marie. "Public Service Board without Legal Personality nor Autonomy". October 1985. Paper prepared for the Seminar "Manage- ment Options for Urban Services", held at Cesme, Turkey, on November 6, 1985. - Fisk, Donald, et al. Private Provision of Public Services: An Over- view. Washington, D.C.: The Urban Institute, 1978. - Fixley, Phillip, E., Jr. "Service Shedding: A New Option for Local Governments". Privatization Review, Vol. 2, No. 3, Summer 1986, pp. 10-23. (Public service versus Private service delivery: mainly water sewerages, public cleansing.) - Hanke, Steve H. "The Private Provision of Public Services and Infra- structure". Report submitted to the Agency for International Develop- ment. Washington D.C.: Johns Hopkins University, May 31, 1984. - Pescard, Warren. Privatization of Rural Water Supplies in Developing Countries?" Waterlines, No. 3, October 1984, pp. 2-4. - Roth, Gabriel. The Private Provision of Public Services in Developing Countries. Washington, D.C.: EDI Services in Economic Development, 1987. - The Privatization Review, Vol. 2, No. 1, Winter 1986. - The Privatization Review, Vol. 2, No. 3, Summer 1986. - Savas, Emmanuel S. "Policy Analysis for Local Government: Public versus Private Refuse Collection". Policy Analysis, Winter 1977. - Spurge, John. "Getting Water in Shape for privatization". Public Finance and Accountancy, August 9, 1985. - Vuylsteke, Charles. "Provision of Urban Services: Arrangements with the Private Sector". In: "Management Options for Urban Services". Report of a seminar held at Cesme (Turkey) on November 11-20, 1985, sponsored by Iller Bank, Ministry of Public Works and Settlement and the World Bank, Washington, D.C., 1986.

Contracting out. Subcontracting and Franchising

- Germidis, Dimitri, Ed. International Subcontracting: A new Form of Divestment. Paris: Development Center of the Organization for Eco- nomic Cooperation and Development (OECD), 1980. - Mathewson, G. Frank and Winter, Ralph A. "The Economics of Franchise Contracts". The Journal of Law and Economics, Vol. XXVIII (3), Octo- ber 1985, pp. 503-526.

21 Most publications on the U.K. privatizations review the process for privatizing public services. - 91 -

Hartley, Keith. "Policy Towards Contracting Out: The Lessons of Experience". Fiscal Studies, 5:1, February 1984, pp. 98-105.

Valuation of Public Enterprises

- Buckland, R., and Davis, E.W. "PrivatizationTechniques and the PSBR". Fiscal Studies, Vol. 5, No. 3, 1984, pp. 44-53. - Buckland, R. "The costs anl returns of the privatizationof nationalized industries". Public Administration,Vol. 65, 1987, pp. 241-257. - Jones, Leroy P.; Tandem Pankaj; and Vogelsang Inga. The Economics of Privatization: Ex Ante Valuation and Ex Post Evaluation. Development Research Department,Report No. DRD 295. Washington,D.C.: World Bank, April 1987. - Mayer, C., and Meadowcroft, S. "Selling public assets: Techniques and financial implications" Fiscal Studies, Vol. 6, No. 4, 1985. Reprinted in Kay, J.A.; Mayer, C.; and Thompson, D. Privatization and Regulation: The UK Experience. Oxford: Oxford University Press, 1986. Distributors of World Bank Publications

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