The Kyrgyz State Property Committee has refused to sell a 51% stake in national telecoms operator Kyrgyztelecom to Russian long distance provider Rostelecom, the committee's chairman, Ravshan Zheenbekov, told Interfax.
Kyrgyzstan was not happy with the price offered by Rostelecom, he said.
After the Kyrgyztelecom privatization tender committee was unable to reach an agreement with the winner of the tender - Swedtel, the State Property Committee wrote to Rostelecom, another contestant, asking it to repeat its bid.
In its official reply, Rostelecom proposed lowering the price from what it had originally offered, which Kyrgyzstan refused. Rostelecom then proposed a new price, but it was still lower than the $15.29 million bid at tender.
The tender commission plans to start talks with Global Communication Network of Turkey, which participated in the tender as part of a consortium with the European Bank for Reconstruction and Development and offered the third largest sum of $12.5 million.
Kyrgyzstan to hold new phase of Kyrgyztelecom tender
Kyrgyzstan has announced a new phase of the tender to sell a 51% stake in national telecoms operator Kyrgyztelecom, Tatiana Nagavitsina, a spokeswoman for the State Property Committee, told Interfax.
Because the term for the previous bids has expired, the tender committee has asked participants to enter new bids, she said.
Proposals were set to all previous participants, with the exception of Swedtel.
The bids entered were: $16.2 million from Arextech Limited/Detecon International GmbH (initially it offered $10.5 million), $15.05 million from Rostelecom ($15.287 million), $15 million from Kazkommerts ($9 million), $15 million from Global Communication Network ($12.5 million), and $5.35 million from Kazakhtelecom ($5.25 million).
Arextech Limited /Detecon International GmbH made the highest offer and the tender commission will over the next seven days evaluate the development and tariff plans it offers.
If proposals meet the requirements, the commission will begin talks with Arextech Limited/Detecon International on the sale of the 51% stake. If an agreement is reached, the company will be named the winner of the tender.
If the commission and the consortium fail to reach an agreement, talks will begin with Rostelecom, which offered the second largest bid.
Interfax, May 31-June 01, 2004