Privatisation Unit (PU)

Ministry of Finance, Planning and Economic Development
Procurement Number: PU/Srvcs/07/08-00616
Invitation for Expressions of Interest
Transaction Advisor for the Divestiture of Kilembe Mines Ltd

The Privatisation Unit (PU) is implementing a program of Reform and Divestiture of Public Enterprises in Uganda under the Public Enterprise Reform and Divestiture PERD) Act.

According to the Act, Kilembe Mines Ltd ("KML") is categorised as a Class 111 company where the Government of Uganda which owns 99.06% % of the company is required to fully divest. The remaining shareholding, 0.04%, is owned by the Estate of the late GDK Rukiidi III.

KML started operations in 1956 producing copper at a copper mine in Kasese and a copper smelting plant in Jinja. The company operated up to 1982 when it stopped due to depressed world copper prices. Since then the company has been operating on a care and maintenance basis.

As a result of recent upsurge in world copper prices and projections, indications are that mine operations may be viable. The Government of Uganda (GOU), therefore would like to revive commercial operations at KML. In line with the Public Enterprises Reform and Divestiture Programme, Government nevertheless wishes to divest its shareholding in KML to prospective investors through a Concession arrangement or Public Private Partnership ("PPP").

In view of the above developments, the PU has allocated funds and intends to apply part of the proceeds of these funds towards procuring a Transaction Advisor for the divestiture of Kilembe Mines Ltd. The Transaction Advisor shall put together and lead a team of consultants including a Financial Analyst, Project Manager, Legal

Expert, Copper Mines Expert, Environmental Specialist and a Procurement Specialist. Interested consultants must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc.). Consultants may associate to enhance their qualifications.

A consultant will be selected in accordance with the procedures set out in the Public Procurement and Disposal of Public Assets Act and attendant regulations.

Interested consultants may make inquiries from the PU Procurement Office at the address below from 0900 to 1700 hours (East African Standard Time).

Expressions of interest clearly marked:"Expression of Interest for Transaction Advisor for the Divestiture of Kilembe Mines Ltd (KML)" must be delivered to the address below by 3.00 pm on Wednesday October 31, 2007.

Document Registry
Privatization Unit (PU)
2nd Floor, Communications House,
1 Colville Street.
Kampala, Uganda.
Tel: (256-414) 705600/1
Fax: (256-41) 342403, 234504.
E-mail: procure@perds.go.ug

Attention: The Director, Privatization Unit

22 Oct 2007