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Yesterday, 27 March 2003, representatives of the Government of Lesotho met with representatives of SADELEC to continue discussions on the extension of the Management Contract of the Lesotho Electricity Corporation. Agreement was reached between the Government of Lesotho and a recent World Bank Supervision Mission which was in Lesotho to review progress of the Lesotho Utilities Reform Project that additional time was required to refine the proposed privatization strategy of Lesotho Electricity Corporation in respect of:
- ownership of some of the assets of the company;

- the treatment of company liabilities; and

- in the critical issue of rural electrification.

In view of the time required to do further work on these aspects of the proposed restructuring of Lesotho Electricity Corporation to accommodate private sector participation, it has become necessary to extend the existing Management Contract. Allowance has been made to extend the contract for up to twelve months or slightly longer to allow for the completion of the privatization process and take-over of the corporation by a strategic investor. The Government of Lesotho team was coordinated by the Privatisation Unit led by the Director Mr. M.T. Mashologu and the SADELEC team was led by Mr. Mike Page.