Permanent Secretariat of the Privatization Committee

CONTACT:

Tour Nabémba
7^th Floor, Door 07.13
Brazzaville, Congo
Tel.: +242 05 589 21 97 / +242 06 664 69 65
Email.: spp@economie.gouv.cg

OBJECTIVES OF PRIVATIZATION

• Increased revenue from the State budget;
• Reduction of the service of the public debt generated, amongst others, by low performance of public enterprises;
• Contribution of private capital to the Congolese economy;
• Improving the quality and efficiency of public services (water, electricity, telephone,       fuel distribution, transport), previously provided by public companies;
• Development of popular shareholding in the Republic of Congo;
• Refocusing the role of the State in regulating national economy.

LEGISLATIVE AND INSTITUTIONAL FRAMEWORK FOR PRIVATIZATION

Legislative and regulatory framework:

Law 21-94 of 10 August 1994 on the framework law on privatization and its addendum, law 10-95 of 07 April 1995 determining second perimeter privatizable enterprises; those of the first perimeter being defined in Law 21-94 of August 10, 1994 and regulatory texts, and especially:

• Decree No. 2012-862 of 3 August 2012 reorganizing the Privatization Committee wholly or partially repealing the regulations referred to above;
• Decree No. 94-425 of 1 September 1994 laying down procedures for the implementation of the privatization of privatizable enterprises;
• Decree No. 94-426 of 1 September 1994 determining the weighting ratios between the different valuation values ​​of public companies;
• Decree No. 94-425 of 1 September 1994 determining the level of participation of the State and other subscribers.

Institutional framework:

• Government of the Republic;
• Privatization Committee as the technical body of the government that assists it in the conduct of the privatization program.
• A decree lays down rules for the organization and functioning of privatization.

The Privatization Committee is placed under the supervision of the Minister responsible for Public Portfolio and comprises:

• A President (Minister in charge of the public portfolio);
• Two Vice Presidents (Minister of Private Sector Promotion and Minister of Labour);
• A permanent secretary;

And nine (9) members, appointed by presidential decree and representing:

• The presidency of the republic;
• The Ministry of Finance;
• The ministry of the plan;
• The Ministry of Public Portfolio;
• The Ministry of Justice;
• The Ministry of SMEs;
• The Ministry of Labour;
• The Ministry of Commerce;
• The Ministry of Industrial Development.

The Permanent Secretariat of the Privatization Committee is a technical body of the Privatization Committee which assists it in the exercise of its powers.

The Permanent Secretariat of the Privatization Committee comprises:

• A permanent secretary;
• Technical advisers, appointed by order of the Minister of Public Portfolio;
• Sectoral project officers recruited by individual contract, if necessary.

PRIVATIZATION PROGRAM

Consistency of the privatization program:

The privatization program concerns all economic sectors:

• Hydrocarbons (refining and distribution of petroleum products);
• Post and telecommunications;
• Transport;
• Water distribution;
• Electricity ;
• Insurance;
• Banks;
• Trade ;
• Agriculture and Livestock ;
• Waters and forests;
• Tourism and hotels.

For the implementation of the privatization program, companies are grouped into two distinct perimeters, namely:

• First perimeter enterprises covering major public service (Hydro-Congo, CORAF, ONPT, ATC, SNE and SNDE);
• Second perimeter enterprises, companies in other sectors such as: banks (i), forest companies (ii), agricultural and fishing industries, hotels and other businesses.

Initially piloted by international donors, through a development credit in Congo by IDA and approved in Congo by law 31-95 of 26 December 1995, reinforced by a Japanese cooperation grant and a loan from AFD, the privatization program no longer benefits from financial support.

The routine operation of the privatization committee and the program-budget of privatization operations are fully supported by the budget of the State.