Vision

To lessen overviewing burden of State-owned Enterprises by the government.

Mission

To ensure effectiveness in public enterprise management and accelerate the divestiture of State owned Enterprises (SOEs) in order to ease the pressure on public expenditure.

Objective

• To promote enterprise efficiency through improved corporate governance
• To promote and accelerate wider participation of the private sector in the operation of SOEs.

Strategies

• Setting criteria to appoint Professionals/Experts as CEOs.
• Setting objective criteria for selection of boards of directors.
• Maintaining strict financial discipline by SOEs.
• Making the management of SOEs accountable for overall performance.
• Selection of the SOEs to be privatised with reference to their type of business, and other factors necessitating divestiture.
• Selection of appropriate method for privatisation on a case by case basis ensuring a fair opportunity by all investors.

Policies

• To allow government to concentrate on the business of government policy formulation.
• To reduce the financial and managerial burden imposed on the government by SOEs.
• To increase competition and efficiency and introduce technological modernisation as well as provide better consumer services.
• To develop good management practices.
• To accelerate the rate of growth of economy by stimulating private investment.
• Improve the effectiveness and transparency of privatisation procedures and privatisation decision making.

Programs

• To make a clear policy statement on privatisation considering the past experiences.
• Formulation of Privatisation By-Laws/Procedural manual to ensure consistency in procedures for divestiture.
• Revision of the privatisation process to streamline the present cumbersome and lengthy process.
• Expansion of public awareness program on privatisation.
• Privatisation of 12 SOEs at the end of FY 059/60.
• Preparation of basic guidelines for Board members representing different SOEs.
• Implementation of the recommendations of corporation reform committee applicable on pay structures and benefits systems, structural design and basic management systems/practices of SOEs.
• Publish annual report on performance and targets of SOEs.

Procedures

• To carry out research, analyses, and discussion with the line Ministry.
• To propose program of the privatisation to the privatisation committee.
• Approval of time bound privatisation program by enlisting enterprises in different phases.
• Approval on method and technique of privatisation and other issues.
• Commission and approve valuation and other relevant reports.
• Finalise and issue bidding documents.
• Companies to be privatised are advertised in both national and international press.
• Bids to be submitted in two envelopes technical and financial.
• Select evaluation committee members & conduct evaluation.
• Bids to be evaluated against predetermined evaluation criteria.
• Approval of preferred bidder.
• Finalise sales contract in discussion with preferred bidder.
• Approval of finalised sale contract with preferred bidder.

Indicators

• Increased profits earned by SOEs
• Reduced burden to the government treasury
• Increased contribution of SOEs to the GDP
• Number of units privatised
• Reduced time from selection to privatisation
• Amount of sales proceeds realised
• Utilisation of sales proceeds
• Change in employment
• New technological innovations
• Profit/Loss made by the privatised companies
• Increased investments after privatisation
• Revenue contribution after privatisation
• Increase and diversification in production after privatisation
• Increase in sales volume after privatisation
• Increase in profit earned by SOEs
• Decreased pressure in Government treasury for SOEs expenses

Monitoring /Reporting/Evaluation

• Quarterly and annual review of performance against program
• Post Privatisation monitoring of privatised enterprises to be undertaken annually both to ensure compliance with terms and conditions of transfer and to assess performance
• Annual performance evaluation of SOEs
• Environmental Scanning