GOVERNMENT plans to bring private companies into public enterprises as part of efforts to reduce costs and improve the performance of state-owned entities.
Public Enterprises Minister Charan Jeath Singh said many government companies are currently doing similar work, which is leading to duplication and higher costs.
“I have asked them to review their way of operations and bring costs down,” Mr Singh said.
He said they were now looking at public-private partnerships, where private companies work together with the government in running public entities.
“We need to bring in private companies as partners in public companies. We have six entities, and most of them are duplicating similar work,” he said
He said the plan was to group these entities into two main groups, each managed by one board, to make operations simpler and more efficient.
“This is the first step before private companies are invited to take part.”
He said there was already interest from both local and overseas companies, and the government would invite formal proposals once all documents and approvals are ready.
“Similar systems are used in other countries, including the Philippines, where private companies helped improve struggling Government businesses.”
He said Government would still keep control of public assets.
“All government assets will remain with the government.”
He said private companies may be allowed to operate these entities for about 30 years, after which they will be handed back to the Government.
