Privatization support

The Zambian Privatization Agency (ZPA) will sell, transfer, or liquidate enterprises and strengthen its staff"s privatization skills. An institutional contractor will provide most of the TA. The goal of Zambia"s 5-year divestiture plan is to sell 134 state-owned enterprises, 65-70 of them under this project. The ZPA will sell the first tranche, 10 small firms, by 12/92. In 1993, with the help of eight long-term advisors (specialists in privatization economics, financial analysis, business analysis, valuation and pricing, public flotations, investment relations, negotiation, and promotion) ZPA will begin privatization of larger and more complex firms. While most divestitures will be relatively straightforward, the sale of approximately 25 larger parastatals may be more difficult; for these, additional, short-term TA will be provided by the project, Germany, and the World Bank. Additional TA will also provided for divestitures complicated by social (e.g., labor relations and pension rights) and environmental (e.g., pollution) issues. TA will also help the Government to prepare industry-specific environmental monitoring, evaluation, and mitigation plans. Three types of nondegree training will enhance ZPA"s ability to manage privatizations: (1) seminars and workshops for ZPA staff on topics such as privatization, valuation techniques, and industry-specific issues, and for parastatals managers on topics such as management buy-outs and debt-equity swaps: (2) third-country study and promotional tours for technical staff and senior managers of ZPA and of the Ministry of Commerce, Trade, and Industry; and (3) visits to the United States by ZPA representatives, the Ministry of Commerce, Trade, and Industry, and occasionally, technical ministries to attend seminars and conferences and to promote Zambia"s privatization program. ZPA will also promote its privatization program by developing pamphlets, advertisements, videos, etc.