Iraq appoints MerchantBridge to advise on the leasing of State-owned companies to the Private Sector

The first phase of the Programme involves 35 factories in a number of sectors falling into four categories: i.- food and pharmaceuticals, ii. - construction materials and engineering, iii. - chemicals and iv. - textiles. Over 100 bids have already been received, a number of which are from international firms or from joint ventures between Iraqi and foreign firms.

His Excellency Mr. Mohamad Tawfiq Raheem, the Minister of Industry and Minerals, commented, "This high level of interest was very encouraging. It shows that our novel leasing programme has successfully set a precedent for bringing the private sector back into a large number of companies owned by the State."

The Lease Programme was initially launched in November 2003 and interested companies were invited to put in bids to lease the selected factories for periods of five years, or longer by mutual agreement between the Ministry and the lessee. The Programme is the first step in the direction of involving the private sector actively in the local economy, which was dominated by the state under the previous regime.

MerchantBridge is helping to refine the details of the Programme and assisting in the evaluation of bids and negotiations with the bidders. Basil Al-Rahim, Managing Director of MerchantBridge, stresses the importance of proper evaluation of the bids. "We will take into consideration several factors such as the reputation and experience of potential lessees, as well as their readiness to transfer technology and provide training and new investment. The selection process will be entirely transparent." Mr Al-Rahim is leading the MerchantBridge team, while day-to-day activities are managed by Eric le Blan a senior corporate financier in the firm.