Privatization study for the Nyambai sawmill : Republic of Gambia

This feasibility study indicates that privatization of the mill will increase use of the mill"s capacity to 60%, allow the mill to produce dry lumber which can be sold at noncontrolled prices, and generate about $56,000 in revenues for the government though incomes taxes and stumpage fees. With the government committed to divesting unprofitable state-owned enterprises and several investors already interested in the sawmill, the climate for privatization is favorable. The asking price for the mill should be set at about $282,000, plus $100,000 for equipment, repairs, and inventory build-up, payable in a 6-year final maturity agreement. The report recommends A.I.D. technical assistance in using stumpage fees to finance reforestation projects, catalyzing participation of Gambian officials in the privatization process, and ensuring that buyers are selected on the basis of objective criteria. Privatization of the mill should be completed before July 1, 1987.