Government has invited prospective investors to bid for state-owned sugar enterprises as the privatization process reaches a critical stage.
The Ministry of Finance on Tuesday issued the request for proposal (RFP) on Tuesday jointly with the Ethiopian Investment Holdings or EIH.
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“The RFP marks a critical milestone in the government’s efforts to transition to a competitive market structure and strengthen private sector growth in the sugar sector,” the duo said in a joint announcement.
The government wants to fully privatize eight sugar enterprises. They are Arjo Dedessa, Kessem, Omo Kuraz 1, Omo Kuraz 2, Omo Kuraz 3, Omo Kuraz 5, Tana Beles, and Tendaho. .
More than twenty local and international parties have officially registered their interest after authorities invited investors to Express their interest in August 2022.
Authorities have been engaging with these interested parties to receive early feedback for consideration on the envisaged policy reforms.
They have now issued a comprehensive RFP that outlines the bid submission process.
The government made the RFP available to prospective investors who have signed a Non-Disclosure Agreement and paid a participation fee.
The RFP provides detailed information on the transaction, including the scope of the privatization, the requirements for bidders, the evaluation criteria, and the timeline for the process.
The finance ministry and the EIP said they are looking “forward to their continued participation in the tender”.
Ernst and Young LLP is currently serving as the lead transaction advisor to assist the government with the transaction process.
Most of the mills that are a subject of the ongoing tendering process are recently constructed with built-in infrastructure as well as water and land resources located in cane-growing climatic conditions.
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They are also engaged in the production of ethanol and electricity for internal use and supply to the national grid.
“The successful privatization of these sugar enterprises will contribute to the growth and development of Ethiopia’s economy and promote private-sector investment in the country,” the Finance Ministry said.
