Jordan Times
Friday, July 9, 2004

EPC, HSBC sign accord for restructuring, privatising Jordan Phosphates Mines Co.

AMMAN (JT) — The Executive Privatisation Commission (EPC) on behalf of the government of Jordan and HSBC consortium officially signed on Thursday a financial advisory services agreement for the restructuring and privatisation of Jordan Phosphates Mines Company (JPMC).

The consortium comprises local and international renowned advisory services, namely: Behre Dolbear/Technical adviser, Allen & Overy / International legal adviser, Sharif Al Zo'obi / local legal adviser (counterpart), and Deloitte & Touche / accounting and auditing advisor.

The consortium shall provide technical, financial and legal advisory services to the Jordanian restructuring and privatisation team entrusted with proceeding with required measures for the completion of the transaction.

In this respect, three committees were formed: Ministerial Committee, Steering Committee and the Technical Committee.

The duration of this contract is expected to be over a period of at least eighteen months during which the government of Jordan seeks to acquire required consultancies in production, marketing and administrative matters with the main objective of raising JPMC productivity, profitability and competitiveness while safeguarding the rights of all workers.

JPMC privatisation scheme involves strategic partnership that would achieve the government's aspiration in sustaining the company's position as one of the largest mining companies globally.

The retainer fee related to this contract amounts to $1.75 million and shall be totally covered by the USAID grant to Jordan which is administered by the World Bank, in addition to a success fee in the amount of 0.75 per cent of gross proceeds to be reimbursed from the privatisation proceeds.

The winning consortium has been awarded the contract in light of an open international bidding process. Technical and financial evaluation of the offers was undertaken by specialised Jordanian committees according to best international practices.

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