As the deadline for the submission of Expression of Interest for purchasing the Nigerian Telecommunications Limited (NITEL) draws near, the Bureau of Public Enterprises says investors who do not pay the non-refundable application fee of $25,000 will automatically be disqualified.
Reiterating the importance of the application fee, in a telephone interview with NEXT, the spokesperson for the bureau, Chigbo Anichebe, revealed that only nine out of the 14 prospective investors that have expressed interest in participating in the bidding process for NITEL's privatisation have paid the statutory sum.
Mr. Anichebe noted: "Some investors would automatically disqualify themselves if they don't pay their $25,000 non-refundable application fees," adding that those who have paid have been granted access into the data room.
Payment made
The nine investors that have paid the $25,000 are: Etisalat Nigeria (EMTS); Omen International Limited (BVI); MTI Consortium; Finetek.Com/Ericsson Consortium; Globacom Ltd; MTN Nigeria Communications Limited; Telefonica Consortium; Brymedia (W.A) Limited; and Conau Limited.
Mr. Anichebe said: "These nine investors are enough to go on with the bidding process of NITEL, since they all have the minimum evaluation, as the BPE would not extend the deadline again. The nine investors have shown strong indications. Usually, three investors are enough, which is the international standard. So, I am doubtful that we will extend the date again," he added.
Extension of deadline
The bureau, last week, extended the deadline for Expression of Interest from October 2 to October 26, based on requests by some core investors for the Bureau to extend the deadline to enable them package their offers.
However, since the deadline was extended, Mr. Anichebe confirmed to NEXT that no new offer has been received for NITEL. Industry watchers argue that there is no need for the extension.
The October 2 extension is the third time the deadline has been extended since August 28.
"We have delayed the bid for too long and we are determined to end the technical and financial bid process, so that the proper bidding process can take place," said Mr. Anichebe.
Investors yet to pay the compulsory fee
Prospective core investors that are yet to pay their application fees are: Summit Group; MTNL Limited, India; Anas Network Services Limited; Metro PCS Communications Inc. and Galaxy Backbone Plc.
In addition to Globacom, MTN Nigeria, and Etisalat, the bureau's spokesperson said others bidding for NITEL, like the Telefonica Consortium, also include some Nigerian investors, who are partnering with some foreign firms.
NITEL's assets have been split into six parts, namely: SAT-3; domestic fixed line telephony; national fibre-optic transmission backbone; CDMA network; MTEL (GSM); and Analog System (TACS) to ease the bidding process.
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