THE Energy Ministry has found a way to sidestep the Privatisation Agency (PA) in the forthcoming sell-off of power plants by creating a uniting structure.
The holding will be made up of all state-owned thermal power plants (TPP) and the Nuclear Power Plant (NPP) in Kozlodui.
Energy Minister Milko Kovachev has already set up a working group which is to realise the idea.
The main purpose of the initiative is to bring together the power stations and to make them competitive by the time the energy market is due to be liberalised. The liberalisation is scheduled for 2005-2007. The structure will be similar to the Bank Consolidation Company that, instead of the PA, sold the state-owned banks. The same mechanism will be used in the privatisation of Bulgartabac, Government sources said.
The idea for the establishment of the holding comes after the supervisory board of the PA cancelled the sale of 100 per cent in thermal power plant Bobov Dol and heating distribution company in Vratsa on the stock exchange on November 18, 2003. Kovachev, however, denied that the main purpose of the holding was to sidestep the PA in energy privatisation.
The assets of the holding will total billions of leva. A company may enter it with its total capital or smaller stakes. The holding will be allowed to list shares on the stock exchange and to apply for loans. It will also be in charge of calculating prices of thermal energy. The establishment of the holding is believed to reduce the maintenance and repair costs of the utilities as all thermal plants will hold a common tender to choose a maintenance company.
The Varna TPS is considered to be the initiator of the new structure. Apart from it, TPS Rousse, Maritza Iztok 2, Bobov Dol, Brikel and the NPP in Kozlodui will become parts of the holding. It is possible that Maritza Iztok 3 and Maritza 3 will also to join the holding, if their management agrees. According to Kovachev, eventually all power stations will enter the holding, and so will all other power stations in the country. This will not require changes to legislation, he said.
The establishment of the energy holding has been proposed by experts and has not been discussed by the parliamentary energy committee, committee chairman Vesselin Bliznakov said.
- Business Staff
The holding will be made up of all state-owned thermal power plants (TPP) and the Nuclear Power Plant (NPP) in Kozlodui.
Energy Minister Milko Kovachev has already set up a working group which is to realise the idea.
The main purpose of the initiative is to bring together the power stations and to make them competitive by the time the energy market is due to be liberalised. The liberalisation is scheduled for 2005-2007. The structure will be similar to the Bank Consolidation Company that, instead of the PA, sold the state-owned banks. The same mechanism will be used in the privatisation of Bulgartabac, Government sources said.
The idea for the establishment of the holding comes after the supervisory board of the PA cancelled the sale of 100 per cent in thermal power plant Bobov Dol and heating distribution company in Vratsa on the stock exchange on November 18, 2003. Kovachev, however, denied that the main purpose of the holding was to sidestep the PA in energy privatisation.
The assets of the holding will total billions of leva. A company may enter it with its total capital or smaller stakes. The holding will be allowed to list shares on the stock exchange and to apply for loans. It will also be in charge of calculating prices of thermal energy. The establishment of the holding is believed to reduce the maintenance and repair costs of the utilities as all thermal plants will hold a common tender to choose a maintenance company.
The Varna TPS is considered to be the initiator of the new structure. Apart from it, TPS Rousse, Maritza Iztok 2, Bobov Dol, Brikel and the NPP in Kozlodui will become parts of the holding. It is possible that Maritza Iztok 3 and Maritza 3 will also to join the holding, if their management agrees. According to Kovachev, eventually all power stations will enter the holding, and so will all other power stations in the country. This will not require changes to legislation, he said.
The establishment of the energy holding has been proposed by experts and has not been discussed by the parliamentary energy committee, committee chairman Vesselin Bliznakov said.
- Business Staff
