Zambia Development Agency (ZDA) is inviting prospective bidders to submit applications for pre-qualification to participate in the proposed partial privatisation of Zambia Telecommunication Company Limited (Zamtel).

This is in accordance with the Zambia Development Agency Act No 11, 2006, which mandates the Agency to implement the privatisation of state owned entities. And the ZDA has engaged RP Capital Advisors Limited as its exclusive financial advisor in relation to the Zamtel transaction.

The partial privatisation of the state owned telecommunications operator is up to 75 percent of the equity of the company. The proposed terms of the transaction are that the Zambian government will sell up to a maximum of 75 percent equity interest and retain a minimum of 25 percent of that equity interest. However, government reserves the right to sell part or all of the remaining equity interest in the company through an initial public offering on the Lusaka Stock Exchange.

To pre-qualify, prospective bidders must have a minimum of five years of licenced operation in the telecommunications industry; have more than three million active subscribers on fixed, mobile or fixed-wireless networks; and a minimum of US$250 million shareholders’ equity for private entities or; a minimum market capitalisation of US$500 million for public listed entities.

Pre-qualification documents will be made available to prospective bidders on receipt by the ZDA of a signed Non- Disclosure Agreement (NDA), which is available on request at the ZDA and its Advisors.

Prospective bidders are required to pay a non-refundable administration fee of US$20 000 prior to their submission of the pre-qualification application form. The closing date for the pre-qualification applications is October 16, 2009. Qualified bidders will be announced on October 21 and will be provided with detailed guide lines for the bidding process.

Applications by consortia that include Zambian citizens or entities are encouraged, subject to pre-qualification criteria and supplementary conditions. However, entities being, owning or being associated with, either directly or indirectly, to an existing mobile operator in Zambia will be excluded from pre-qualification directly or through consortia.