| The purpose was to assist EIBB achieve privatisation of two SOEs : the Samarkand Elevator Company and the Kinap Company which manufactures cinematagraphic equipment. The enterprises each employed between 650 – 700 workers and had an established reputation for excellence within the previous USSR production and trading system. Each is now suffering from collapse in demand and liquidity crisis.
The work proceeded in three phases. An initial audit evaluated the possibility of a sale, preferably to a foreign investor for hard currency. Following confirmation of this, more detailed technical and financial audit was undertaken leading to the production of an Information Memorandum. The enterprises were then widely promoted internationally using both advertisements placed in appropriate media and private presentations to protential strategic investors. The final stage has provided assistance to EIBB and the State Property Committee in negotiating and achieving a sale. In fact it has not so far been possible to achieve an advantageous deal to a foreign investor for hard currency.
Problems in the Uzbek regulatory regime, as much as any shortcomings in the enterprises themselves, has been a major impediment. Emphasis is now switching towards achieving sale to local (or regional) interests. |
