Guinea Bissau’s government announces privatisation of Guiné Telecom

25 July 2011

Bissau, Guinea Bissau, 25 July – The government of Guinea Bissau is preparing the financial clean up and revaluation of the assets of Guiné Telecom for later privatisation, Prime Minister Carlos Gomes Júnior said Friday in Bissau.

The prime minister made the statement at the session to launch the restructuring project of Guiné Telecom (fixed line) and Guinetel (mobile network), both owned by the Guinean state, but which are both technically bankrupt.

In order to re-launch the two companies, the Guinean government received funding of 7 billion CFA francs from the African Development Bank (ADB) and the Ecobank, funding which the prime minister said was enough to re-balance the two companies in technical terms and then privatise them.

“The two companies will be part of a single package to be negotiated with potential investors according to international rules and practices,” said Carlos Gomes Júnior.

The two companies were part-owned by Portugal Telecom, but the Portuguese group decided to give them up by mutual agreement with the Guinean authorities following the company’s inability to collect a 30 million-euro debt from the Guinean state. (macauhub)