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Agrobusiness |
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Consumer goods |
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Automotive, aeronautical, subcontracting, mechanics |
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Public works, construction, water and environment |
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Information technology, electronics, telecoms |
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Pharmacy, health, chemistry, biotechnologies |
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Textile, garments |
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| SECTOR PERSPECTIVES
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Privatisations, concessions |
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So as to modernise their economies and make up their shorthfall in infrastructures, at the beginning of the 90s, the Mediterranean countries launched a whole series of reforms. In this way, each at his own rythm, they undertook programmes of privatisation. Little by little, they are opening up their markets and adapting an often very protective legal and regulatory framework. |
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| Picture :
Privatisations, concessions |
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Services: |
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News of the sector |
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Investment Opportunities |
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Documents |
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Privatisations, concessions
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Presentation |
Privatisation is an efficient way of attracting foreign investors, while limiting recourse to limited public budgetary resources – it is the user and not the tax payer, who is paying for a service, and helps the operator to amortise the investments he has made. During the past five years, these projects have provided a total injection of capital of UD$15 billion –which represents, depending on the country, between 3 % (Turkey) and 9 % (Morocco) of GDP. The main partners are the large European operators, often French, whose know-how is highly sought after.
In Turkey, Israel, Algeria, privatisation has enabled local companies to reinforce their position by acquiring State enterprises, sometimes in partnership with foreign businesses. The opportunities remain numerous for SMEs which may be interested in taking over former State conglomerates which are more or less well managed – even if, in several countries of the region, the candidate enterprises complain of administrative recalcitrance and a certain lack of transparency. The restructuring of the banking sector could also attract investors in Turkey, Israel and Tunisia.
The large programmes are tending to slow down, for the majority of the « easy » examples of privatisation concerning major and profitable operators (telephone operators in particular) have already been made. |
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Country focus |
In Morocco, the privatisation programme started in 1993. In 2000, the 35 % opening of the capital of Maroc Telecom, the largest operation undertaken to date, brought the State 2.3 billion euros, with a second phase in 2003. Bouygues was chosen in 2003 for the port of Tanger-Méditerranée (a contract of around US$ 260 million out of a project total of $1.2 billion). There exist further opportunities, with 23 companies and two hotels on the current privatisation list. The opening of the electricity market to an alternative operator to O. N.E. is planned for 2005.
The Algerian privatisation programme is currently being revitalised. A large number of public companies should be liberalised. The only exception, the hydrocarbons sector, which is to remain protected. Also in the programme, concessions for water, energy, transport and telecommunications. The local subsidiary of Orascom which, for a short while, has benefited from a mobile telephone operator’s licence has shown satisfactory penetration results (100,000 subscribers). Alstom, also, has been retained for a 300 MW gas operated power station costing 58 million US$ at Ain Beida (East coast).
Tunisia has announced its privatisation plans for the financial sector. The authorities also envisage granting concessions for water, electricity, transport and telecommunications. As in en Algeria, the local mobile telephone subsidiary of Orascom has shown satisfactory penetration results (70,000 subscribers).
Jordan is seeking to attract investors for privatisation projects in the sectors of water treatment, electricity and potassium. For example, offers were expected in October 2003 for a 300 MW electricity plant amounting to 150 million US$.
In the Lebanon, the electricity sector will be subjected to several calls for tender in the near future. The government has decided to dramatically reduce public subsidies to the tobacco sector and to launch its privatisation. The Lebanon has chosen in 2003 an operator for the treatment of water in North Beirut, a project worth around a planned 90 million Euros in BOT. Another operator should be chosen for the management of the container terminal in the Port of Beirut for the next ten years. However, the termination in 2002 of the licences of the 2 mobile telephone operators (Cellis and LibanCell), in fact extended until the end of 2003, has given a signal likely to disturb the market.
In Egypt, an important privatisation programme is planned in different sectors such as the telecommunications or banking. The reference public operator (Telecom Egypt) hesitated in 2003 between launching a third network of mobile telephones or on the contrary making the two current private operators (MobiNil and Vodafone) pay for the fact that the third network was abandoned.
The Maltese authorities should privatise certain public enterprises shortly.
Syria stands out with the absence of an overall programme of privatisation, although recent openings have been mentioned. The industrial sector still belongs to the State to the level of 80 %. With the exception of the two mobile telephone networks, the perspectives are also limited for concessions. On the other hand, private investments are welcome in all sectors.
The Israeli government launched a privatisation plan as early as 1993. In the firing line, the banking sector. Today, there remain 91 public enterprises, which represent a mere 5 to 10 % of GDP. In 2003, the Israeli government cut the Gordian knot with the privatisation of El Al: due to a lack of interest from among transport partners, the government sold part of its shares on the stock market, keeping a small majority of the capital only, along with the personnel of El AL.
In the Palestinian Territories, offers are awaited for the supply of water and the treatment of sewage at Gaza, a 13 million Euro project in BOT. Once political conditions permit, it may be estimated that a good number of infrastructures to be rebuilt in the country will be conceded to the private sector. |
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Electricity demand: high growth to come |
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Electricity consumption
TWh, 2001 |
Electricity consumption per capita
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Source: EIA/DOE and miscellaneous |
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