THE Privatisation Agency (PA) launched on October 24 three simultaneous procedures for the sale of the three pools in which Bulgaria's seven electricity distribution companies (EDCs) have been grouped.
The first pool includes Sofia City, Sofia Region and Pleven EDCs, the second comprises Plovdiv and Stara Zagora companies, and the third is made up of Gorna Oryahovitsa and Varna EDCs.
Information memoranda will be sold until December 5.
Only strategic investors with credit ratings at least BBB-, capital of more than 700 million euro, electricity sales of at least seven billion kWh in 2002, at least five per cent share of a market liberalised at least to 26.5 per cent will be viewed as potential buyers, the PA said.
These terms are not met by France's Electricite de France, because of the delay in the liberalisation of the French market. Italy's Enel and Germany's RWE, however, are eligible.
According to consultants from BNP Paribas, a total of 43 companies meet the demands set by the Bulgarian Government.
Enel has already unofficially expressed interest in the privatisation of the Bulgarian EDCs, as have as another Italian company, EON, and the Czech Republic's CEZ. Russian company United Energy System also expressed interest in the deal but is not an eligible candidate, because the liberalisation of the Russian market does not meet the conditions set by the PA.
All seven EDCs own 47 747 medium and low voltage transformers, 49 720 km of medium voltage cables, and more than 55 000 km of low voltage cables.
In 2002 electricity distribution revenue grew by 20.8 per cent compared to 2001.
All seven regional distribution companies shared the same trend last year. Plovdiv EDC held a record in its history post-tax profit of 15.7 million leva for 2002. Gorna Oryakhovitsa EDC almost doubled its income in 2002 compared to 2001 and reached a profit of 12.6 million leva. The Sofia City EDC posted a profit of 21 million leva. The Sofia district EDC reported a profit of 5.5 million leva although it had 500 000 leva loss at the end of 2001. The Pleven EDC had 7.2 million leva profit, the Stara Zagora EDC 13.4 million leva and the Varna EDC profit was 8.2 million leva, although it registered an insignificant profit of 341 000 leva in 2001.
The Cabinet plans to liberalise the domestic electricity market totally by 2007. The energy generating capacity of Bulgaria is 13.19 GW, but only 10.2GW of this was used last year. The remaining facilities were not fit for operation. Kozlodui nuclear power plant produces 45 per cent of the total power in Bulgaria.
The first pool includes Sofia City, Sofia Region and Pleven EDCs, the second comprises Plovdiv and Stara Zagora companies, and the third is made up of Gorna Oryahovitsa and Varna EDCs.
Information memoranda will be sold until December 5.
Only strategic investors with credit ratings at least BBB-, capital of more than 700 million euro, electricity sales of at least seven billion kWh in 2002, at least five per cent share of a market liberalised at least to 26.5 per cent will be viewed as potential buyers, the PA said.
These terms are not met by France's Electricite de France, because of the delay in the liberalisation of the French market. Italy's Enel and Germany's RWE, however, are eligible.
According to consultants from BNP Paribas, a total of 43 companies meet the demands set by the Bulgarian Government.
Enel has already unofficially expressed interest in the privatisation of the Bulgarian EDCs, as have as another Italian company, EON, and the Czech Republic's CEZ. Russian company United Energy System also expressed interest in the deal but is not an eligible candidate, because the liberalisation of the Russian market does not meet the conditions set by the PA.
All seven EDCs own 47 747 medium and low voltage transformers, 49 720 km of medium voltage cables, and more than 55 000 km of low voltage cables.
In 2002 electricity distribution revenue grew by 20.8 per cent compared to 2001.
All seven regional distribution companies shared the same trend last year. Plovdiv EDC held a record in its history post-tax profit of 15.7 million leva for 2002. Gorna Oryakhovitsa EDC almost doubled its income in 2002 compared to 2001 and reached a profit of 12.6 million leva. The Sofia City EDC posted a profit of 21 million leva. The Sofia district EDC reported a profit of 5.5 million leva although it had 500 000 leva loss at the end of 2001. The Pleven EDC had 7.2 million leva profit, the Stara Zagora EDC 13.4 million leva and the Varna EDC profit was 8.2 million leva, although it registered an insignificant profit of 341 000 leva in 2001.
The Cabinet plans to liberalise the domestic electricity market totally by 2007. The energy generating capacity of Bulgaria is 13.19 GW, but only 10.2GW of this was used last year. The remaining facilities were not fit for operation. Kozlodui nuclear power plant produces 45 per cent of the total power in Bulgaria.
