XII. PUBLIC ENTERPRISES (PEs)

• Turning to the performance of PEs, the sector continues to contribute significantly to the overall development of the country. Although not all of the PEs have their accounts for 2000 audited at the time of preparing this report, the sector registered a gross turnover for the year of about D1.042 billion, representing an increase of about 10% compared to 1999. An individual analysis of the PEs shows that Gambia Telecommunications Company Ltd. registered D344.6 million (33%), National Water and Electricity Company Ltd. D212.1 million (20%), Social Security and Housing Finance Corporation D181.2 million (17%) and Gambia Ports Authority (GPA) D129.1 million (12%). In relative terms, Gamtel’s turnover represents a 4% increase over 1999, NAWEC a 4.6 % decline, SSHFC an increase of 3%, and the GPA a decline of 0.8%.

• Contributions to turnover by the other PEs include Gambia Public Transport Corporation D71.5 million (7%), Gambia Civil Aviation Authority D57.4 million (6%), and Gambia International Airlines D44.3 million (4%). In relative terms, the proportion of each of these three enterprises remains unchanged when compared to 1999. The sectors turnover for 2001 is estimated at D1.1 billion representing an increase of 7% from the 2000 figure. The order of magnitude in terms of individual PE contribution to this figure remains virtually unchanged.

• In terms of contribution to total domestic revenue, which relates basically to repayment of loans lent to PEs by Government as well as dividends paid by PEs to Government, a total of about D57.3 million has been collected in 2000. This amount is expected to increase to D62.1 million in the year 2001. The only regular company when it comes to dividend payment is the Gambia Ports Authority, which has paid D2 million in 2000 and D1 million in 2001.

• The total investments of the public enterprise sector, which were held mainly by SSHFC and GPA, as at the end of 2000 stood at D794.6 million. Out of this amount, the SSHFC accounted for D722.3 million or 91% of total investments, while the Gambia Ports Authority held D72.4 million or 9%.

i. The Divestiture Strategy and Regulatory Framework

Mr Speaker, Sir,

• In the context of the divestiture strategy, the Gambia Divestiture Agency (GDA) has been established by an act of the National Assembly with the mandate to implement government’s divestiture programme and serve as the secretariat for the process. The agency has since prepared and submitted to the HILEC a divestiture implementation framework which, when endorsed by the Cabinet, will pave the way for the divestiture of public enterprises. In terms of the legal and regulatory framework for public utilities, the National Assembly will be forwarded a Public Utilities Regulatory bill for enactment. Given our previous experience with public enterprises, government is hereby informing parliament of the need for private-public partnership to ensure greater synergy in our future privatisation process.

• The Denton Bridge and Kaur Facilities have been handed over to the GDA in preparation for their divestiture before the 2002/2003 groundnut-trade season. A consultancy carried on the Facilities demonstrated the strategic importance of the river transport fleet in the success of groundnut marketing. In fact it was stressed that without barges there will be no groundnut season. Given the poor state of the barges of the river transport fleet and their vitality in assuring the success of the coming trade season, the GDA has entered into agreement with a Senegalese firm for the full repair of 22 barges for the period November 2001 to March 2002.

-end.