Ernst & Young offers lowest bid for consultancy during Ethio Telecom’s privatisation

Four global consulting firms are angling to win the contract to offer consultancy services during the partial privatisation of Ethiopia’s telecom monopoly, Ethio Telecom. The four firms – Roland Berger, PwC, EY and Deloitte – this week appeared before Ethiopian government officials for evaluation.

So far, Ernst & Young (EY) has made the lowest offer, bidding against Deloitte, PwC and Ronald Berger.

The bid was issued by Ethiopia’s Ministry of Finance in October last year and had initially drawn interest from five consultancy companies, that is: Roland Berger, PwC, KPMG, EY and Deloitte.

However, KPMG was later disqualified due to possible conflict of interest that could have arisen from its ongoing contract with Ethio Telecom in conducting the asset valuation, according to Addis Fortune.

“The firm to be awarded will have the job of preparing the the bid documents for the partial privatisation, reviewing the initial determination of the minimum value, and undertaking legal due diligence including taxes, contracts and liabilities,” reported Addis Fortune.

The Ethiopian government has decided to divest 45 per cent of the company for privatisation, keeping 55 per cent under state ownership with 5 per cent of the company’s being reserved for public subscription.

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