Public invitation for privatization adviser for MSK Kikinda opened – Bid submission deadline March 10, 2017

The state opened a public invitation for the privatization adviser of Metanolsko-Sircetni Kombinat Kikinda (MSK) on Friday, February 24, 2017. Interested bidders may apply by March 10, at noon, and the opening of bids is scheduled for March 13, 2017, at 1 pm.

The public invitation envisions that the privatization adviser should sign a six-month contract.

The selected privatization adviser is to propose a model of privatization for the company to the Government of Serbia. There have been allegations for a long time now from Minister of Economy Goran Knezevic and Prime Minister Aleksandar Vucic that various investors are interested in MSK. Investors from Russia were mentioned initially, and there’s been talk lately about investors from China and Kazakhstan as well.

Once the company’s financial reports are taken into consideration, however, it’s hard to see anyone being interested in it, as it is operating with losses. In 2015, the operating income of MSK amounted to merely RSD 510 million, whereas its expenditures were nearly five times larger, reaching RSD 2.39 billion, meaning that the company made a loss of RSD 2.2 billion.

Nevertheless, one should take into consideration that the production started only in the third quarter of 2015. This was preceded by the government’s decision of August 28, 2015, but also a loan of RSD 600 million approved by the Development Fund.

Let us remind that the company was forced to stop the production on November 14, 2011, due to a disturbance in the world market, a drop in demand and a drop in the price of acetic acid.

MSK a.d Kikinda

Fond za razvoj Republike Srbije Niš

Metanolsko Sircetni Kombinat Kikinda

privatization adviser MSK Kikinda

Goran Knezević

Aleksandar Vucic

Development Fund

acetic acid