Privatisation: World Bank Scores BPE Low
From Kunle Aderinokun in Abuja
The World Bank has scored the Bureau of Public Enterprises (BPE) poor marks for the slow pace of the privatisation programme.
The World Bank Projects Operations Portfolio Report on Nigeria while describing the BPE's implementation as slow stated that the privatisaiton programme encountered implementation difficulties.
The World Bank gave a rather "unsatisfactory rating" of the Implementation Progress (IP) of the privatisation support initiative, remarking that the programme "encountered implementation difficulties."
The bank stated that the BPE has drawn only $21.59 million or 18.9 per cent out of a total of $114.29 million it set aside on June 14, 2001 for the privatisation support initiative.
In the last three years, the Federal Government has paid $2,571,525 as commitment charges on the privatisation support programme. It is expected that if effectively applied, the fund would "accelerate implementation and full achievement of the Development Objective (DO)" for the programme.
The report stated that the objectives of the World Bank privatisation support initiative are to: "support transparent and effective implementation of the Federal Government of Nigeria privatisation programme, as a basis for fostering accelerated economic growth, through expanded private investment and improved efficiency in the productive sectors and in infrastructure; and create an enabling environment for private sector participation and competition in infrastructure services, notably in telecommunications and electric power."
However, the World Bank has criticised the implementation of the privatisation programme because of the delay in the passage of the Electricity Power Reform Bill by the National Assembly and the stalling of the privatisation of Nigeria Telecom-munications (NITEL) due to the inability of the BPE to meet the requirements of the Securities and Exchange Commission (SEC) before the initial public offer.
The World Bank expressed unhappiness at the slow pace of the entire privatisation process in the last one year.
Generally, of the 15 World Bank financed projects only four was scored "unsatisfactory." These, according to the Report are: the Second Health System Development Programme ($127.00 million); HIV/AIDS Programme Development ($90.30 million); Local Empo-werment and Environmental Management Programme ($70 million); and the Privatisation Support Programme ($114.29 million).
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