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It’s two years since the Nicaraguan government decided to privatise Enitel. 40 percent of its shares were sold to a consortium consisting of Sweden’s Swedtel and the Central American EMCE. Eleven percent was sold to Enitel employees and the State of Nicaragua kept 49 percent.

The privatisation process was carried out under World Bank guidance. Enitel’s sale was part of an HIPC initiative, which the World Bank has drawn up together with heavily indebted poor countries.

Converting Enitel from a state company to a private telecom is bringing fundamental changes to its corporate culture. The training of staff and attracting skilled employees are major challenges in a developing country like Nicaragua, Schmidt points out.

With privatisation, Enitel’s payroll will be cut from the present 1900 employees to about 1200 by 2005. The reductions are due to be implemented via voluntary retirement packages.

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