FS prepares new tender for Andinatel and Pacifictel

Ecuador's state assets holding company Fondo de Solidaridad (FS) expects to launch the sale of contracts to administrate fixed line telcos Andinatel and Pacifictel, as well as 14 electricity distributors, in the first week of September, Ecuadorian daily El Comercio reported. Canadian consulting company Framework has been carrying out a final review of the bidding rules, which were drafted by US-based consultancy Telcordia. A joint committee of the FS, Energy Ministry and state investment agency Conam was expected to review the bidding rules on Thursday ready for the FS board to give definitive approval on Friday. An IMF technical team is scheduled to visit Ecuador next week. The sale of administration contracts was one of the conditions for a loan package from the International Monetary Fund (IMF), which has given the FS an extended deadline of September 17 to begin the auctions. The government had been holding parallel talks with Canada's government-run international trade and export facilitating corporation Canadian Commercial Corporation (CCC) as a candidate for a contract to administrate Pacifictel. However, it was discovered early August that the firm had a prior or ongoing relationship with Ecuadorian citizens, which directly contravened a clause in the contract aimed at keeping the administrator bias-free. A previous attempt to select a Pacifictel administrator early 2002 was derailed by a local entity with connections to political opponents of the plan.