Amidst reports that the Cabinet is “split” over the matter, the Ministry of Finance, in a press release, advised that a “review” process for the transfer of shares representing 49 percent of the share capital of BTC, and announcement of a “preferred bidder” has not been completed.
In its Monday press release, the Finance Ministry advised that “the review of the final bid submission has not yet been completed. In the circumstances, and in accordance with the Sales Process Rules for the Final Phase of April 11, 2003 (as amended), the Tenders Commission will announce the preferred bidder no later than Sept. 12, 2003.”
Reportedly, the bids received were under $100 million, much less than the government had anticipated.
One of the bidders, Blue Tel is proposing to bring a total of more than $300 million of international financing into The Bahamas.
The company also proposes to invest an additional $200 million in infrastructural development to transform BTC into a sophisticated telecoms entity, providing the kind of immediate service at reasonable prices that prevail in major metropolitan cities.
Blue Tel’s strategic partner is Detecon, Inc., the management arm of Deutsche Telekom, which has participated in numerous privatization processes, in such places as Tanzania, Uganda, Bolivia, Taiwan, Mozambique and South Africa.
Other bidders for BTC are BahamaTel, which is represented by JP Morgan financial analyst Tom Bain, and Trans World Telecommunications Bahamas Ltd., whose spokesperson is IBM Bahamas executive Felix Stubbs.
The deadline extension comes after a local tabloid reported that Cabinet ministers are “split” over the sale of BTC. While some have labeled the three bidders “unsuitable,” others are in favour of a local management team.
When asked on Monday about the postponement, Minister of Public Works and Utilities Bradley Roberts, whose portfolio includes BTC, neither confirmed nor denied the report, his sole comment being, “Don’t take the words of a newspaper not known for not telling the truth.”
Attempts to contact Minister of State for Finance James Smith proved fruitless.
By Khashan Poitier, The Nassau Guardian
