More than 10 companies have expressed interest in purchasing the 49 percent shares up for sale in the new Bahamas Telecommunications Company.
Less than two weeks into the bidding process, parliamentary secretary Michael Halkitis today expressed his pleasure with the progress being made.
According to Mr. Halkitis, bids have come in from both local and international companies. He declined to disclose further details.
"We expect to receive some more responses," Mr. Halkitis said.
"The parties who have sent responses will be contacted by the Ministry of Finance which will give them certain documentation.
He added: "We will review the responses that we get from the bidders to determine their level of financial liability and their ability to provide the technical experience and resources that will be required."
The government is searching for a strategic partner with at least $300 million in capital or funds under management. The company must pay the government a $10,000 non-refundable registration fee in order to qualify for the privatization bidding process, which opened Wednesday, October 23.
The registration fee is only collected if the company decides to pursue the shares after contact from the Ministry of Finance.
The cut off date for the interested parties to make their intentions known to the government is December 6. The final date for the submission of preliminary bids is January 10.
Mr. Halkitis said, "It is up to the Ministry along with the consultants to go through the bids and look at those responses and narrow them down to a short list of six."
The Free National Movement Administration had intended to privatise BaTelCo by 1998. The process has already cost the government at least $150 million, with $5 million being paid out in consultancy fees alone.
The corporation's regulatory property, rights and liabilities were transferred to the Public Utilities Commission.
BaTelCo's shares in Cable Bahamas , valued at $2 million, go to the Treasurer, along with all assets not used in carrying out telecommunications services. Other property, rights and liabilities of the corporation will go to the new Bahamas Telecommunications Company.
Mr. Halkitis reiterated remarks made by Prime Minister Perry Christie that at the end of the day, the sale might not go through if bidders don't come close to the company's real value.
"BaTelCo is a revenue earner and the government does not want to be in a position where it is selling this public asset for anything less than we think it is worth," he said.
"That's why we will be very careful as we study all the proposals to ensure that the maximum benefit is accrued to the Bahamian people."
For the financial year ended December 31, 2001 , BaTelCo's revenues totaled $226 million and had net earnings totaling $100 million. The company's net assets as of December 31, 2001 were $287 million.
By Tosheena Blair, The Bahama Journal
