Energy privatization deal close to finalization


Giorgi Arveladze,
Georgian Economy Minister 
 Brno, Czech Republic — (METERING.COM) — January 25, 2007 – The Czech company Energo-Pro and the Georgian government are close to finalizing a large energy privatization deal, although the initial terms seem to have been revised. After winning a privatization bid in June 2006, Energo-Pro pledged to buy Georgia’s United Energy Distribution Company (UDC) and the Energy Distribution Company of Adjara, as well as six hydroelectric power plants, for a total of $312.3 million. However, a final agreement had not been signed.

Now officials have announced that the state and the utility have agreed that Energy-Pro will pay the state $132 million, but that Energy-Pro would also invest $175 million in the rehabilitation of energy generation and distribution systems, as well as $120 million in construction of a new hydro power plant.

“We are all satisfied with the final results,” said Georgian Economy Minister Giorgi Arveladze. “The major essence of the deal is that instead of receiving $312 million in the state budget, we will now receive $32 million in the state budget and up to $300 million in the country’s energy system.”