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Privatization committee agrees strategic partner in Nepal Telecom.

NepaliTelecom by NepaliTelecom
August 18, 2022
in Nepal Telecom, Telco News
Reading Time: 2 mins read

There have been numerous news regarding government’s plan to bring strategic partner in Nepal Telecom. Several committees, sub committees were even formed in previous years to formulate the procedure for divesting certain shares to international telecom giants but no significant development so far. The latest in news is the decision of the privatization committee to go ahead with strategic partner in Nepal Telecom.

The privatization committee in Finance Ministry made a decision to pave the way for bringing strategic partner in the two of its profitable organization: Nepal Telecom and Agricultural Development Bank. The meeting even decided to form a technical sub committee which is mandated to form the legal frameworks and procedures in inviting potential partners. For that, the technical sub committee will be preparing legal and bid documents within the next six months, but the committee members and chairperson have not been decided yet. Finance Minister, heading the privatization committee recommend this being the perfect time to divest its share, as the company is running in huge profit, which can lure international giants for the partnership.

According to ekantipur, the committee has even set some preconditions for the partnership.

  •  the partner should have operated in at least three countries.
  • subscriber base of 20 million.
  • Annual income of $ 1 billion in last three years.
  • Running in profit for the last three years.
  • Shareholders equity to be three times than NT.

As per the previous committee recommended to divest 26-30 percent share to the strategic partner, the committee suggests to divest 30 percent stake.

Though most of the NT management, government officials and political leaders are convinced to bring Strategic partner in Nepal Telecom, there is equal recommendation from some officials to amend Public Procurement Act for the state owned telecom company to compete with Private companies, which according to them is a major hurdle to bring new projects in time.

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