XI. FINANCIAL PERFORMANCE OF PUBLIC ENTERPRISES

i. Gambia Telecommunication Company (GAMTEL)

Mr. Speaker Sir,

157. Gamtel's total revenue for 2002 showed a significant improvement over the previous year. The audited accounts show total revenue of D594.4, million whilst expenditure totalled D593.9 million, resulting in an after tax profit of around D50,000. This profit is, however, D5 million below the previous year, due to the high interconnection charges (22% of total expenditure) with the two mobile operators. Total investment was D72.9 million mainly for the purchase of telecommunications equipment (D67.2 million) and investment in RASCOM (Regional African Satellite Communications Organization) amounting to D5.75 million.

158. The forecasted revenue for 2004 of D685.03 million exceeds the estimated revenue for 2003 of D612.9 million by D72.0 million, showing an increase of 11.75%. The expenditure expected for 2004 is D578.3 million, compared with estimated expenditure of D509.8 million in 2003, showing an increase of D68.5 million or 13.44%. The increase is largely due to the high cost of foreign exchange to finance the company's operations.

ii. Social Security Housing Finance Corporation (SSHFC)

159. Consolidated Gross Income recorded for the year ended 31st December 2002 was D167.8m, which compares to D129.3m budgeted and D132.9m recorded for the previous year. Recurrent Expenditure, on the other hand, amounted to D32.87m, and D13.03m below the budget and D0.35m above the previous year. Thus, the Corporation recorded a Consolidated Net Surplus of D66.87m, which compares favourably with D40.25m budgeted, and D52.8m for the previous year. The Net Assets of the Corporation grew by 17% from D1.03 billion in 2001 to D1.09 billion as at 31st December 2002, and the Members' Fund increased by 19% to D1.2 billion.

iii. Gambia Civil Aviation Authority (GCAA)

160. On the financial performance of the GCAA, revenue for the first six months of the year under review amounted to D72M, an increase of 48% over revenue for a similar period in the previous year. Aeronautical revenue constituted 88% of all revenues for the first six months of the year, while non-aeronautical revenue and revenue from miscellaneous sources constituted 12% of the total revenue for the period. Aeronautical revenue is forecasted to reach D134M by the end of the year, an increase over the budgeted revenue for the year under review of 58%. With the expected increase in traffic in 2004, revenue is expected to rise to D190M, an expected increase of 42% over the forecasted revenue for 2003.

iv. Gambia International Airline (GIA)

161. For the year ended 31st December 2002 turnover of the GIA was D148.79 million with pre-tax profit of D3.2 million. The GIA will continue to expand its activities in 2004.

v. Maintenance Service Agency (MSA)

162. For the 12 months ended 31st December 2002, the Company registered a turnover of D3.6 million compared with D4.8 million in 2001. The net profit before tax for the year 2002 was D76,000, compared with D227,000 in 2001.

vi. Asset Management Recovery Corporation (AMRC)

163. In the Financial Year Ended 31st December 2002, the Corporation collected D12.8m against budgeted revenue of D12.4m. Although this recovery effort is laudable, the Corporation is experiencing difficulties in recovering unsecured liabilities. Furthermore, there are legal proceedings in the courts involving an amount of over D20 million. It is now evident that about 60% of the outstanding GCDB loans are bad debts, with the remaining 40% representing unsecured debts.

164. Over the years, the AMRC has created a Rents Unit to manage the rented properties forfeited to the State through The Commissions of Inquires. In 2002, the AMRC earned D0.4 million against a budgeted amount of D0.7 million.

vii. Gambia Public Transport Corporation (GPTC)

165. The Corporation's performance in 2002 shows a decrease in revenue of 43.2% or D13.5 million while operational cost also decreased by 54.4% or D20.2 million. This has resulted from the transfer of the ferry service from the GPTC, and the marked reduction in the Operational fleet of buses, due to old age. This marked drop in operational cost had a very significant effect on the performance of the Corporation. This, together with improved utilization and management of the remaining fleet of operational buses, improved the profitability of the Corporation from a net loss of D5.8 million in 2001 to a net profit of D0.54 million in year 2002.

viii. Gambia Ports Authority (GPA)

166. Turnover of The Gambia Ports Authority operations has risen by 54 percent from D150million in 2001 to D231 million in 2002. Operating profit increased from D61 million in 2001 to D103 million in 2002, representing an increase of 69 percent. Fixed assets as at 2002 stood at D363 million, compared with D346 million in 2001. This represents a 5 percent increase in the acquisition of new assets.

167. Despite the satisfactory financial performance achieved in 2002, increase in debt service charges together with the depreciation of the Dalasi had impacted negatively on GPA`s profitability level. Gross debt increased by 108 percent from D173 million in 2001 to D360 million in 2002. Consequently, profit before tax increased from by 29% from D31 million in 2001 to D40 million in 2002.

ix. National Water and Electricity Company ( NAWEC)

167. The year 2002 has been another difficult period for NAWEC due to the high fuel prices and the depreciation of the Dalasi. Nawec incurred a loss of D191 million for the period, of which D101 million is due to exchange rate losses on external debt payment. The low tariff cannot cover operating expenses and this is amply demonstrated by comparing NAWEC's unit production cost (one unit is equivalent to a kilowatt hour) of electricity of D3.44 to the average tariff at the time of D2.00 per unit. It is worth mentioning that the estimated production cost does not include any element for the cost of the older engines, and no margin.

-end.