Haiti will begin the job of privatizing state-owned industries-a
crucial part of the country's effort to build a healthy economy
and a modern, democratic society-with help from the World Bank
Group's International Finance Corporation (IFC).
IFC announced this week that it has signed an agreement with the
government to advise Haiti on the privatization of nine state-owned
enterprises in both evaluating the industries' market potential
and implementing the divestiture program.
"This is the surest way to convey to the international investment
community the clear signal that Haiti has now reopened for business,"
says Philippe Lietard, director of IFC's Corporate Finance Services
Department.
To spread the benefits of privatization, those shares of privatized
enterprises not sold to foreign partners will be reserved by the
government for disadvantaged groups of the population , including
the victims of past political repression. The exact nature of
the transfer has yet to be finalized.
Haiti will use the proceeds from privatization to construct public
schools and hospitals and replenish underfunded pensions. The
revenue will also be used to improve social conditions and public
services in rural Haiti, as well as the country's environmental
infrastructure.
In the first phase of the program, IFC staff and outside consultants
will examine the business fundamentals of each of the nine enterprises
and perform company valuations. The second phase will involve
the sale of the companies, either as going concerns or as asset
divestitures.
The state-owned enterprises to be considered for privatization
include the electric and telephone utilities, the port and airport
authorities, two banks and two, agribusiness firms. Work on the
cement, port and power projects is already under way. |
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