The cabinet today approved Ministry of Information and
Communications’s proposal to bring in a strategic partner for Nepal Telecom, in principle.
Though the government has not yet decided number of its shares it is going sell, the decision has paved the way to divest part of its shares to
the strategic partner.
Nepal Telecom has been – since last couple of years – asking the government
to allow it to bring a competent strategic partner. After today’s green signal
of the cabinet, the process will take momentum.
The government plans to divest 30 per cent of its shares,
according to the recommendation of the technical committee that was formed to
study the strategic plan. The technical team is preparing an expression of
interest to hire an international consultant to help Nepal Telecom find a
right partner.
The telecom – only one of the largest dividend provider and
largest tax payer to the government – plans to invite applications next month for
a consultant, who will prepare the bid documents for potential strategic
partners and prepare a due diligence report of Nepal Telecom besides performing
other tasks.
The strategic partner needs to invest Rs 30 billion to Rs 40
billion and it’s a tough as the current working style of the government entity is
making it less efficient to compete with the private sector players in the
sector.
The government has some 92
per cent stake in the company as it had divested 150,000,000 units of its shares
that are now being traded at the Nepal Stock Exchange at around Rs 580 per unit.
ADB loan approved
The cabinet also
decided to approve Asian Development Bank’s (ADB) loan assistance of Rs 7.35
billion for the implementation of the South Asia Sub Regional Economic
Assistance Road Network Project. Finance secretary and joint secretary will be signing
the agreement on behalf of the government.
Anti-Money laundering laws sent
to committee
The cabinet also sent Anti-Money Laundering Regulations 2070 BS, Reconciliation Act 2068 BS and Mutual Legal Cooperation Regulations 2070 BS – proposed by Ministry of Law and Finance Ministry – to the Bills committees.
The cabinet also sent Anti-Money Laundering Regulations 2070 BS, Reconciliation Act 2068 BS and Mutual Legal Cooperation Regulations 2070 BS – proposed by Ministry of Law and Finance Ministry – to the Bills committees.
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