OREANDA-NEWS. February 21, 2008.The President of the National Joint-Stock Company ‘Energy Company of Ukraine’, Vladimir Zinevich considers it necessary to sell the state-owned majority stakes in the energy generating companies operating TPPs and CHPPs to strategic investors.

‘The only way to rehabilitate the generating capacities of TPPs and CHPPs is to sell the state-owned stakes in the energy generating companies of the thermal energy industry to the strategic investor’, said V.Zinevich during a meeting of the Board of the Ministry of Fuel and Energy of Ukraine on 14/02/08.

He assumes that when privatizing the generating companies the State should impose the liabilities on the buyers to renew the plants’ equipment within a certain period of time (5-10 years) and to ensure the further efficient performance of these facilities.

The President of NJSC noted that the generating companies with the majority stake owned by the State cannot attract loan financing in an amount necessary for the reconstruction and upgrade of TPPs and CHPPs due to the normative-legal and ownership constraints.

‘Using the experience of Russia and other countries in energy companies’ privatization, during the implementation of the energy companies denationalization programme Ukraine can be provided with environment-friendly, modern, efficient and maneuverable units’, emphasized V.Zinevich.

He also added that the State Holding set the task to develop and to implement the key provisions of the programme of privatizing the energy companies operating TPPs and CHPPs.

‘Energy Company of Ukraine’ was established in 2004. It manages the corporate rights of the State in the energy generating and energy supplying companies of the country. NJSC, in particular, owns 85.77% of shares in Donbassenergo OJSC, 78.29% of shares in Centerenergo OJSC, 76.04% of shares in Dneproenergo OJSC, 70.1% of shares in Zakhidenergo OJSC, 50%+1 share in Kievenergo OJSC.

The State Holding also owns 100% of shares in Dneprodzerzhinskaya CHPP OJSC, Nikolaevskaya CHPP OJSC, Kharkovskaya CHPP-5 OJSC, Khersonskaya CHPP OJSC and Odesskaya CHPP OJSC.