The Government of Samoa (GoS) is continuing with its reforms in the Telecommunications sector. Successful reforms in this sector are pivotal to the overall economic reform process in Samoa. Consistent with the GoS plans for enterprise reform and privatization of nonstrategic public enterprises, and in conjunction with the Telecommunications Sector Project, a sales transaction advisor (Nathan Associates Inc) has been contracted to advise and assist the GoS with the privatization of Samoa Tel Limited, a 100% wholly owned Telecommunications Company of the GoS.

The Government’s Policy regarding ownership and privatization of state owned enterprises was originally set out in its policy paper dated July 2003. This policy identified a number of objectives for privatization: (i) obtaining a good financial return for any sale; (ii) Any state owned enterprise (SOE) classified as non-strategic was to be sold (Samoa Tel is not classified as a strategic SOE); (iii) Privatization should not encourage any concentration of wealth in
Samoa by those who are already wealthy; (iv) Ordinary Samoans should share in any benefits of privatization; (v) Privatization should lead to reduced costs and improved service for consumers.

The philosophy of private participation in the sector objectives has also been strengthened by the sector objectives set out in the Telecommunications Act 2005. The GoS sees the privatization of Samoa Tel as one instrument among many for accomplishing its overall sector policy objectives. In this sense, the GoS seeks to achieve a balance between the price it can obtain for Samoa Tel and its developmental objectives.

Consistent with Government’s policy objectives for privatization (iii) and (iv), the Government has also engaged itself to set up a Unit Trust to encourage local participation in shares and other investment instruments. The aim for Government is to make available portion of its shareholdings in its state owned companies scheduled for privatization, such that local residents can indirectly own shares in these state owned companies, including Samoa Tel.

The GoS seeks a transparent and objective privatization transaction process. For this end an advisory consortium (Transaction Advisor) has been appointed to advise and assist the GoS meet the stated objectives and execute the Samoa Tel privatization transaction in a transparent, objective and competitive fashion, consistent with international best practices.

The privatization process will be managed throughout by a Privatization Steering Committee, in close consultation with the Ministry of Telecommunications and Information Technology (MCIT), Ministry of Finance (MOF) and Samoa Tel. The Advisors will provide advice to the Committee from time to time when required.



For further information, please email lulai.lavea@mof.gov.ws