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THE GOVERNMENT OF LESOTHO 

Utilities Sector Reform Project

Credit No.3484 – LSO

Consulting Services 

Expressions of Interest 

ESTABLISHMENT OF A WAREHOUSING FACILITY

FOR SHARES RESERVED FOR PUBLIC PARTICIPATION 

This request for expressions of interest follows the general procurement notice for this project that first appeared in Development Business No. 557 of 30 April 2001. 

The Government of Lesotho has received a credit (hereinafter called “loan”) from the International Development Association (IDA) toward the cost of the Lesotho Utilities Sector Reform Project and intends to apply a portion of this loan to eligible payments under this Contract. 

To assist in improving economic development in Lesotho, the Government of Lesotho has sought to develop a capital market in the country as part of its privatisation programme. 

To progress toward achieving this objective a feasibility study was carried out in 1999 on establishing an investment fund in Lesotho.  The benefit of such a fund would be to enable Basotho an affordable mechanism for owning shares in formerly state-owned enterprises. 

The feasibility study led to the implementation work on establishing the Lesotho Unit Trust, which was launched in 2001.  Now further work is required by the Government of Lesotho to establish an operational Warehousing Facility in which to hold Government shares reserved for public participation. 

The scope of the work is to: 

• To conduct a comprehensive review of the existing assumptions relating to the establishment of the Warehouse and provide details on how such an institution would operate in Lesotho and how it may be used as a basis for a future stock exchange.
• Assist the Government in defining and setting targets for the Warehouse in order to measure its performance.
• Devise an incentive structure for the future Management Team of the Warehouse in order to maximise the transfer of shares to the private sector. This incentive structure will then be codified into the Terms of Reference and Contract for the Management Team, which will be prepared by the Government and Consultancy.
• Document and establish the Warehouse for operational use in preparation for a Management Team to take over and perform the required functions.

The consultancy is expected to be undertaken by a team consisting of two persons over a timescale of 10 calendar weeks. The expected level of effort is 8 man weeks per person. The budget ceiling for this assignment is US$50,000.00. 

The Consultant will have a good qualifications and experience in fund management expertise, portfolio strategy, operational infrastructure and administrative facilities to provide advice on the functions and obligations of the Management Company as prescribed in the Privatisation Trust Deed which was produced as an output of the 1999 feasibility study. 

A firm will be selected in accordance with the procedures set out in paragraph 3.7, “Selection Based on Consultants’ Qualifications” of the World Bank's Guidelines: Selection and Employment of Consultants by World Bank Borrowers- January 1997 (revised September 1997, January 1999 and April 2002).   

Interested consultants may obtain further information at the address below. Expressions of interest/Applications must be received at the address below by 9 April 2004. Submission by email is acceptable. 

Director

Privatisation Unit

2^nd Floor Lesotho Bank Mortgage Division Building

Kingsway

P/Bag A 249

Maseru 100

LESOTHO 

Telephone: +266 22 317 902

Fax: +266 22 317 551

E-mail: director@privatisation.gov.ls