UTE Earmarks US$170M For LTC

The Analyst (Monrovia)
NEWS
February 15, 2005 [/b]
Posted to the web February 15, 2005


LTC Board of Directors has endorsed the recommendations of the Bid and Evaluation Committee awarding the corporation's privatization contract to an American-based Liberian-owned telephone company.

The company is expected to infuse US170 million into LTC, informed sources told the press yesterday.

The Committee submitted its recommendations to Board members on February 8, in the presence of members of the Contract and Monopoly Committee. The Board met the following day to study the recommendations.

After carefully reviewing the document, the Board met yesterday at TELECOM's head office on Lynch Street and endorsed the Committee's recommendations that the Universal Telephone Exchange Inc. based in Texas, United States of America, owned by one James S.

Yarclay, a Liberian, be awarded the contract to rehabilitate, revitalize and modernize the LTC.

Meantime, Board members will formally inform transitional Chairman Gyude Bryant about their decision, they told reporters yesterday.

"LTC is a vital component of the national economy with not less than 800 workers. UTE has offered to retain the services of all the workers and pay their salary arrears", acting Board Chairman Samuel D. Prowd of the National Social Security and Welfare Corporation, told reporters.

Board members are convinced that awarding the LTC contract to UTE will bring enormous benefits to the nation.

UTE also operates in Ghana and other West African states and is expected to infuse $170 million into LTC, officials say.

Already, they said, a United States' import and export bank has consented to grant an export credit to UTE to jump start the project. Then the Standard Chartered Bank of Ghana has also consented to provide the initial capital for funding the project, according to Board members.

In November last year, the government issued a special release, stating its policy regarding the revamping of LTC. The release mentioned three areas - open competitiveness in the selection of credible investors in the rehabilitation, revitalization and modernization of LTC, maximum level of transparency in the negotiation leading to an agreement; and the highest degree of protection for all investments in Liberia.

LTC Management then published invitation to persons interested in investing in the state-owned company. Then last November 10, the Board appointed and commissioned a Bid and Evaluation Committee (BEC).Chairman Bryant added five other members to the Committee.

The seal bid was slated to open January 10, but was reportedly held back for one week at Chairman Bryant's request to allow the INFOTEL Italia, a European bidder, participate in the exercise.

The Committee members were reported to have critically vetted proposals submitted by the bidders using "due diligence" criteria and conducted interviews and discussions with each bidder to clarify specific issues of concern to Board members.

Prowd said Board members were guided by the "interim Public Procurement Policy and Procedure document. The document was effectively utilized for further clarification on the bidding process and procedures, for it was the document which as the strength of character for all Committee deliberations, debate and discussions".

Companies that participated in the bidding process were the Universal Telephone Exchange, Inc.

Board members described it as "a licensed telephone operator in the state of Texas." UTE holds a United States' Federal Communications Commission's license to operate telecommunications services.

Huawei Technologies Company Ltd., a leading telecommunication and information technology manufacturer with a global reach, also participated in the exercise. INFOTEL- Italia, an Italian based telecommunications outfit "that markets, distributes and supplies Ericsson products, was another bidder.

After intense deliberations, the Universal Telephone Exchange (UTE) was given 89 points; Huawei Technologies received 79 points while Infotel Italia was given 66 points.

Representatives of the telecommunication group, INFOTEL Italia, has drawn attention to what they believe as an attempt by the LTC Revitalization Bidding Committee to unfairly award the contract to a bidder that is ill-prepared to handle it.

The management representative of the Italian-based INFOTEL Italia noted in a release over the weekend that instead of heeding Chairman Bryant's advice to ensure that whichever company won the bid offered the best opportunity for the Liberian people, the Chairman of the Bidding Committee, Mr. Francis Nyenpon and some members of the LTC Board led by Chairman Francis Karpeh, choose to do otherwise.

"Against internationally accepted procedures, the points allotted to each of the three short-listed applicants were made public before the final decision has been made," the release said.

The minutes of a meeting of the Board of Directors of the LTC held on June 24, 2004, a copy of which is in the possession of this paper recorded concerns of some Board members about the ability of the Infotel.

It was recorded on Page 5 of the minutes: "majority of Board members felt the need for further discussion of the Infotel investment proposal as same is conspicuously silent on major issues relative to the readiness of management to secure the required financing, and the willingness of banking institutions to provide the amount.

"Further, the Board observed that the entire project is based on installation and supply of equipment and short on loan arrangements, terms and liabilities to be incurred by the LTC."

The Board, according to the minutes, advised the LTC Management that in the absence of a financing plan, it should endeavor to make the necessary loan arrangement and revert within a reasonable time period "

A document, titled: "Certificate of Account Status", issued by the state of Texas, County of Travis, said, "I Carole Keeton Strayhorn, Comptroller of Public Accounts of the State of Texas, do hereby certify that according to the records of this office, Universal Telephone Exchange Inc. is, as of this date [February 14, 2005 in good standing with this office having no franchise tax reports or payments due at this time."