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II. Privatization Process: Making Privatization Work - Key Issues & Approaches |
With all the factors discussed above in mind, certain specific steps have emerged as most likely to achieve success. This section discusses what these steps are, why they are taken, and how they are advanced.
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F. Timetable |
Experience teaches that the needed steps in a privatization (discussed in more detail below) should follow this approximate timeline:
1. Select advisors - 2-3 months
2. Document preparation/initial marketing - 2-4 months Pre-qualification - 1 month
3. Pre-qualification - 1 month
4. Due Diligence/Bid Preparation and Submission - 3 months
5. Selection of winner - 1 week
6. Negotiation with winner- 1-2 months
Specific dates can vary and should be flexible within limits. The key is to strike a proper balance in order to keep maximum investor interest. Enough time should be devoted to each step to ensure that the potential investors have had the opportunity to participate. On the other hand, care should be taken not to delay too long at any step and lose momentum. Every effort should be made to hold to schedules. Delay means increased cost to bidders and potentially decreased bids or withdrawal from the process.
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Source: |
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Table
of contents |
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I. Power Sector Privatization |
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II. Privatization Process |
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Conclusion |
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