ELEVEN foreign energy majors have been short-listed in the tender to purchase three state-owned thermal power plants.
Reportedly, the collective proceeds from the sale could add up to about 250 million euro.
The coal-fired plants, in Varna, Rousse, and Bobov Dol, are to be sold as part of Bulgarias move to liberalise its energy market ahead of accession to the European Union in 2007.
The three thermal power plants will be sold in two stages.
Initially, the buyers will be expected to pay only 67 per cent of the stock, while the remaining 33 per cent will have to be paid before July 7, 2007. The offers however, will be submitted for 100 per cent of the assets of the three ventures. The bidders will be able to take at least 51 per cent and increase the capital to 67 percent. For each power plant the increase will be different. At the payment of the first stage of the deal, a buyer will be able to pay up to 10 per cent of the price in compensatory vouchers.
The ageing generators are expected to require tens of millions of euro in investment to bring them up to EU standards, but they are nevertheless seen as attractive to energy majors. The three plants produce about a fifth of Bulgarias 10 000 megawatts of installed power generation capacity.
The Privatisation Agency was reported to have issued certificates to allow 11 companies to bid for the plants.
The Czech Republics CEZ , Austrias EVN, Germanys E.ON, along with Italys Enel, Greeces Public Power Corporation and Russias Unified Energy Systems, Japans Mitsui and Electric Power Development, the UKs International Power, Frances Dalkia, and United States firm AES, were invited to place final bids by March 30.
Twelve utilities initially expressed interest in the plants, but Indias National Thermal Power Corporation had sent a letter advising it was withdrawing from the process.
CEZ has said it would vie for all three plants, which is permitted by the sale plan if a bidder offers the best prices and investment schemes.
The deadline for submitting applications was January 11. Privatisation Agency chief Atanas Bangachev said that the short-listed candidates could buy the set of information memorandum and submit their requests by March 30.
Bangachev added that the main criteria for final selection would be the offered price.
Reportedly, the collective proceeds from the sale could add up to about 250 million euro.
The coal-fired plants, in Varna, Rousse, and Bobov Dol, are to be sold as part of Bulgarias move to liberalise its energy market ahead of accession to the European Union in 2007.
The three thermal power plants will be sold in two stages.
Initially, the buyers will be expected to pay only 67 per cent of the stock, while the remaining 33 per cent will have to be paid before July 7, 2007. The offers however, will be submitted for 100 per cent of the assets of the three ventures. The bidders will be able to take at least 51 per cent and increase the capital to 67 percent. For each power plant the increase will be different. At the payment of the first stage of the deal, a buyer will be able to pay up to 10 per cent of the price in compensatory vouchers.
The ageing generators are expected to require tens of millions of euro in investment to bring them up to EU standards, but they are nevertheless seen as attractive to energy majors. The three plants produce about a fifth of Bulgarias 10 000 megawatts of installed power generation capacity.
The Privatisation Agency was reported to have issued certificates to allow 11 companies to bid for the plants.
The Czech Republics CEZ , Austrias EVN, Germanys E.ON, along with Italys Enel, Greeces Public Power Corporation and Russias Unified Energy Systems, Japans Mitsui and Electric Power Development, the UKs International Power, Frances Dalkia, and United States firm AES, were invited to place final bids by March 30.
Twelve utilities initially expressed interest in the plants, but Indias National Thermal Power Corporation had sent a letter advising it was withdrawing from the process.
CEZ has said it would vie for all three plants, which is permitted by the sale plan if a bidder offers the best prices and investment schemes.
The deadline for submitting applications was January 11. Privatisation Agency chief Atanas Bangachev said that the short-listed candidates could buy the set of information memorandum and submit their requests by March 30.
Bangachev added that the main criteria for final selection would be the offered price.
