Eight firms apply to be consultants

KATHMANDU:

Eight international firms, including renowned global consulting agencies like KPMG, Ernst & Young, and Deloitte, have expressed interest in providing consultancy service to Nepal Telecom (NT) to help it rope in a strategic partner. These firms submitted their Expressions of Interest (EoI) by deadline today.

Thursday was the last day to submit EoI called by NT last month. According to NT, some other firms that have applied to provide consultancy service include Roger Brothers (USA), and Detecon International (Germany). Indian and Singaporean firms have also submitted applications seeking to provide consultancy service that is targeted at preparing the Due Diligence Audit (DDA) of NT and bid documents to select a strategic partner.

Amid growing competition, complicated procurement rules and political interference, NT for the last four years has been longing to bring in a partner. The government, which has 92 per cent share in NT, plans to divest 30 per cent of its stake to the partner.

“We will form an evaluation team and shortlist the potential three to six consultants among the eight,” said Guna Keshari Pradhan, NT spokesperson. She said shortlisted firms will be asked to submit their technical and financial proposals, based on which one will be selected. NT officials say, it might take maximum three months to wrap up the entire process.

As per NT, potential consultants will be shortlisted based on their eligibility criteria. The consultant must have annual turnover of at least $10 million in the last three years and experience of providing consultancy on mergers and acquisitions and divestment of shares in telecom companies in at least five different countries.

The DDA will be carried out by the consultant itself or it can hire a globally experienced consulting firm that has conducted DDAs of at least three telecom companies, according to NT. Officials at NT said that the partnership will help make NT more competitive in terms of bringing new technology and providing better services.

Selection of the consultant is the first phase in the process of bringing a strategic partner to NT.

In the second phase, based on the bidding documents and the DDA prepared by the consultant, EoI will be sought to look for potential strategic partners and finally, one competent partner will be selected after evaluating technical and financial proposals.

The procedure of roping in a partner will take at least two years. Prospective partner will have to invest Rs 30 to Rs 40 billion to acquire shares of NT, as per a study carried out by Finance Ministry in 2012.

Source: THT