LEC RESTRUCTURING  – ANNOUNCEMENT OF SHORT-LIST

The Government of Lesotho and its advisers have completed the evaluation of the nine expressions of interest that were received in response to the Invitation to Qualify for final bidding for the LEC Concession issued in May. 

The Government announces that five (5) of the submissions met the requirements for participation in the final Tender. The short-list of qualified bidders comprises the following (in alphabetical order):

• Electricité de France/African Infrastructure Investment Managers

• Eskom Enterprises

• Independent Power Corporation

• NETGroup/Fieldstone Capital

• SELCO

The bidders who have not qualified still have the opportunity to participate as part of a consortium with the qualified bidders.

The Director of the Privatisation Unit, Mr M. Mashologu, says "the response to this invitation is very encouraging, especially given current market conditions.  A strong partner for LEC will be expected to ensure that the company can continue to roll out new connections and improve quality of service for all of its customers.” 

The Government has adopted a target of connecting 35% of all households in Lesotho by 2015, up from around 10% today.  The Government has adopted a Public Service Concession approach to the Tender.  As part of this, potential investors will pay a fixed price for the Concession Shareholding in LEC (Pty) Ltd and compete on the number of new connections that they commit to install.

In implementing the Tender, Government is supported by a Sales Advisory Group led by BearingPoint (formerly KPMG Consulting), with IPA Energy Consulting, lawyers Cameron McKenna and Edward, Nathan & Friedland, accountants PMB and Gemini PR Services.

For more information please contact:

Mr. R. Kupisz
KPMG Consulting
P. O. Box 1252
Maseru 100
Lesotho

Tel: (+266) 22327620
(+266) 22327621
E-mail:  Richard.kupisz@ipaenergy.co.uk

6 July 2004