XI. FINANCIAL PERFORMANCE OF PUBLIC ENTERPRISES

i. Gambia Telecommunication Company (GAMTEL)

Mr. Speaker, Sir,

131. Preliminary accounts indicate that GAMTEL increased its after tax profits from D50 million in 2002 to D124 million in 2003. GAMCEL recorded a preliminary after tax profit of D253 million in 2003.

132. GAMTEL invested D11.8 million in 2004 to rehabilitate old transmitters and to acquire a new transmitter, which will enhance the operations and coverage of GRTS. The company has continued to expand the network in the Greater Banjul Area, having just completed a D133 million-expansion program in 2004. GAMTEL is currently negotiating a D168 million contract with Alcatel to connect an additional 2,500 customers in the Greater Banjul Area.

ii. Gambia Ports Authority (GPA)

133. The Gambia Ports Authority increased its turnover by 73% in 2003, despite the difficult economic climate and strong competition from ports within the Sub Region, and raised its operating profit (excluding debt servicing costs) by 57% to D162 million. However, due to heavy debt servicing costs, which were exacerbated by the depreciation of the Dalasi, the net profit after tax of GPA was D40 million, a rise of 54% from the previous year.

134. The GPA is currently negotiating with international agencies for funding the Fourth Banjul Port Project, which is intended to expand capacity at the port, ease congestion, reduce the occurrence of flooding at the Northern Terminal, and deepen the entrance channel to allow larger vessels access to the port. Plans are also being developed for the construction of a new passenger ferry terminal, and the Banjul Shipyard. Government has signed a Bilateral Agreement in 2004 with the Republic of Mali, which will facilitate Malian traders to use Gambian port facilities. To further support the transit trade between The Gambia and her neighbours, The Gambia Ports Authority will develop an inland port at either Basse or Kaur, with the civil works planned to start in 2005.

135. Government expects to take delivery in 2005 of three new passenger ferries, which are currently under construction. One of the ferries will be deployed at the Banjul/Barra terminal, while the other two will be deployed to Trans Gambia Crossing.

iii. Social Security and Housing Finance Corporation (SSHFC)

136. The Social Security and Housing Finance Corporation raised its net surplus by 46% to D97 million in 2003, while its net assets increased by 25% to D1.5 billion at end-2003.

137. The Social Security and Housing Finance Corporation continues the development of the Brusubi Housing Project Phase 2, comprising 1,566 serviced plots, of which 320 are being developed as completed or partially completed houses. SSHFC also plans to acquire from Government more land for housing development.

iv. Gambia International Airline (GIA)

138. Gambia International Airlines recorded a pre-tax profit of D1.3 million in 2003, but was forced to suspend sub-regional flight operations in April, 2004 due to operational problems. To restart flight operations in the sub-region, GIA is negotiating to lease a Boeing aircraft and aims to sign a final contract shortly.

v. Asset Management and Recovery Corporation (AMRC)

139. The Asset Management and Recovery Corporation generated total income of D14.2 million in 2003, an increase of 11% over the previous year, which was attributable to aggressive debt collection and effective management of assets. The Corporation has been assigned the task of selling plots of land on the Kombo coastal road, which is expected to generate sales revenue of D100 million for Government. The AMRC is also constructing a guesthouse at Farafenni for rent to visitors.

vi. Maintenance Service Agency (MSA)

140. The Maintenance Service Agency recorded a turnover of D6.5 million in 2003, an increase of 79% over the previous year. MSA continues to pursue its diversification programme in 2004, which involves steel fabrication, the hiring of trucks and plant equipment, collection and sale of scrap metal, specialised engineering services to auto workshops, testing of tourist taxis for road worthiness, driver training and on the job training for the graduates of the NYSS, GTTI and the President’s Awards Scheme.

vii. National Water and Electricity Company ( NAWEC)

141. In June 2004, Government approved a tariff increase of 80 percent for electricity and 40% for water, and this has helped the National Water and Electricity Company make a turnaround. From a loss of around D100 million in 2003, NAWEC expects to make a profit of about D20 million in 2004.

142. The Maintenance of Generator Number 6 has been carried out during 2004, and Generator Number 11 is about to be rehabilitated. The Greater Banjul Transmission and Distribution project has increased capacity to 67 megawatts. The project has also rehabilitated networks that were already dilapidated. The Rural Electrification Project started in 2003 and the generation components are scheduled to be completed in March 2005. On Water, the consultancy services for the Gunjur Water Project has been awarded, and funding has now been obtained for the Kotu Ring Water Project. NAWEC is also very active in the sub-regional initiatives, such as the OMVG and the ECOWAS West Africa Power Pool, all of which seek to link electricity lines to major capital cities in the Sub-Region.

viii. Gambia Civil Aviation Authority (GCAA)

143. There has been considerable increase in commercial activities at The Banjul International Airport leading to substantial revenue collected from January to September 2004. Total turnover recorded during this period amounted to D103 million, representing an increase of 2 per cent over last year. Management accounts, covering the period January to end-September 2004 registered net profit before tax of D20 million, representing 75 per cent of last year’s profit.

144. Government, in its efforts towards liberalising the Air Transport Industry, has during the year review, renegotiated bilateral Air service Agreements with the Governments of Nigeria and Cape Verde, and are at advance stages with the Government of Ethiopia.

-end.