NT consultant hiring process in limbo
KATHMANDU:
Even though it has already been more than a year since the process to hire a consultant to help bring in a strategic partner started, Nepal Telecom (NT) is yet to pick a competent consultant. This clearly shows how slow decisions are made at the state-owned company.
In the expression of interest (EoI) called in March last year, a total of eight international firms had applied to become an advisor to NT. From among the applicants, six were shortlisted and had also submitted their financial and technical proposals. Giving a go-ahead to the strategic partnership plan, the government has already entrusted NT the job of selecting the consultant.
The consultant will play a vital role during preparations to rope in a strategic partner. It will prepare due diligence audit (DDA) of NT and draft the bid documents required for calling a global tender to seek potential partners. Some NT officials said that the consultant hiring process has taken a long time due to the lengthy evaluation work of proposals and negotiations by the management.
To sign the contract for the consultancy, NT management is said to have held negotiations with the lowest bidder regarding the services required and fee to be paid. When asked about the delay, Buddhi Acharya, managing director of NT, said, “A proposal has been sent to our board and as soon as the board meeting convenes, it will be endorsed.” He refused to disclose the name of the lowest bidder.
Earlier, Acharya had told The Himalayan Times that the consultant would be hired before mid-February. KPMG Advisory Services (India), Ernst and Young LLP (India), Deloitte Touche Tohmatsu India (India), Analysys Mason India (India), Detecon International GmbH (Germany) and Roland Berger Strategy Consultants of Singapore are the six international firms that had submitted technical and financial proposals to NT.
Consultant selection is the first phase in the process of bringing a strategic partner. In the second phase, based on the bidding documents and the DDA prepared by the consultant, EoI will be invited to look for potential partners globally and finally, one competent partner will be selected after evaluating technical and financial proposals.
If things go smoothly, it is expected that NT will be able to work jointly with an international partner within two years. Due to increased competition in the market, Nepal Telecom has been planning to divest 30 per cent of its stake to a strategic partner. A study of Ministry of Finance in 2012 had stated that a prospective partner will require an investment of Rs 30 to Rs 40 billion to acquire shares of NT.
Source: THT
