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PRESS RELEASE -
INTRODUCTORY PRESENTATION OF THE LEC SALES ADVISORY GROUP (SAG) PROJECT
PRIVATISATION UNIT 2nd Floor Lesotho Bank Mortgage Division Bldg. Private Bag A249 Maseru.100 Contact: Makalo Ntšasa Tel:317902 Fax:317551 Email:mntsasa@adelfang.co.za For immediate Release Thursday, 18th January, 2002 INTRODUCTORY PRESENTATION OF THE LEC SALES ADVISORY GROUP (SAG) PROJECT A Workshop to introduce the Sales Advisory Group who will assist the Government of Lesotho in the sale of Lesotho Electricity Corporation, was held yesterday at Lesotho Sun following signing of the contract with Barents Group of KPMG for advisory services required to prepare for and implement the sale of a majority shareholding in Lesotho Electricity Corporation to private sector investors. THE Workshop commenced with introductory remarks from the Director of Privatisation Unit, Mr. Mothusi Mashologu who explained that the key objective of the Lesotho Utility Sector Reform Project is to improve and expand the delivery of electricity in Lesotho by involving private sector investors. He further mentioned that to date, progress towards the changes included: • Passage of Lesotho Electricity Authority Bill that was enacted by Parliament at the end of 2001, and is awaiting Royal Assent; • Appointment of the Interim Management Task Force (IMTF) that has been in place since 1 February 2001 and has achieved significant progress in some of the matters relevant to the divestiture assignment such as auditing of LEC accounts for past years, as well as improving the financial management of the Lesotho Electricity Corporation. It was noted that co-operation and assistance to Sales Advisory Group in execution of their complex assignment is of outmost importance. The leader of the KPMG team, Mr. Tom Jardine, introduced his team mentioning that they are selected experts in power privatisation in developing countries. Their specific fields of knowledge includes engineering, economics, finance, and law and regulation. Commenting on the main objectives of the SAG team, he further pointed out that their will tasks will cover: • Defining a strategy to transfer ownership of a major shareholding of Lesotho Electricity Corporation to the private sector; • Assist with the establishment of a regulator; • Draft the legal and regulatory documents for the regulationsof the electricity sector and the divestiture transactionj; and • Implement the divestiture. Robert Yates, who focused on the positive progress already in Lesotho, presented the benefits of privatisation and experience in the rest of the world. The presentation covered the issues that would affect interest by potenetial private sector investors, such as the legal and regulatory framework as well as the potential for growth of the electricity sector in the country. In return, Lesotho will reap the benefits of an expanded network and an efficient and reliable electricity network. Participants in the Workshop included officials of the Government of Lesotho from several ministries that will be directly involved in the privatisation transaction, representatives of the Lesotho Highlands Development authority, as well as the current management of the Lesotho Electricity Corporation. LITLHALOSETSO MABAPI
LE MOIFO O PHETHAHATSANG THEKISO EA LEC |
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