Yarn factory first up for privatization this year

The restructured Public Enterprise Holding and Administration Agency (PEHAA) is floating the first privatization bid this fiscal year.
The agency, which is responsible for managing public enterprises and undertaking the privatization process, is currently preparing to oversee the partial privatization of mega public enterprises only a few months after going through a overhaul and name change.
Previously there was a push to privatize many government owned businesses or return them to their original owner before the communist era of the Derg.
However in the current budget year PEHAA has not transferred anything despite plans s to do so.
Wondafrash Assefa, Public Relations head of PEHAA, told Capital that the restructuring work and preparation for privatizing enterprises is getting priority.
“While we are in process of massive privatization, we have floated the first privatization bid for the BM Ethiopia Garment and Textile SC,” he said.
The agency has announced the share sales of BM Ethiopia, the former Adey Abeba Yarn Factory II, in the fourth week of January and the bid will be opened March 26.
In 2011 the former Privatization and Public Enterprises Supervising Agency, which was changed to the Ministry of Public Enterprises about three years ago, transferred more than 51 percent of the enterprise share for the foreign company called BM and the factory name has been changed to BM Ethiopia Garment and Textile SC, which is mainly engaged in the export market.
Yirgalem Addis Textile Factory PLC the then Adey Abeba Yarn Factory I, which is one of the oldest factories in the country at almost 50 years, was transferred to a private company about eight years ago.
Both factories are located in south west Addis Ababa in Nifasilk Lafto Sub City.
Wondafrash stated that the government plans to sell its entire 48.6 percent share of BM Ethiopia.
BM Ethiopia was floated over the past few years unsuccessfully.
“Based on our five year plan we also have a plan to float other public enterprises in the budget year,” he added.
One of the upcoming public enterprises that would be up for sale is Hilton Addis Hotel, a historical and international brand hotel located in the heart of Addis Ababa.
The hotel was opened by Haile Selassie in 1969 and has a 50-year management contract between Hilton Worldwide and the Ethiopian government that will end this year.