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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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G. The Sale Process |
2. Tender Versus Negotiation
A competitive bid process versus negotiation is preferred. Simply approaching potential investors individually not only reduces transparency, but creates the risk that the good potential investors may be overlooked.
For example, in one privatization, Kazakhstan identified potential purchasers and approached them for direct negotiations, rather than requesting competitive bids. This method was expected to have the advantage of reducing the time between the decision to sell and the actual closing. Ultimately, however, it does not appear that this direct, targeted contact method resulted in a quicker sale. This method also limited the field of potential purchasers and the perception of transparency.
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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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