Czech and Georgian Companies Take over Energy Facilities
Civil Georgia, Tbilisi / 20 Jun.'06 / 14:44

The Czech Energo-Pro has bought two electricity distribution companies and all six hydro power plants, while the Georgian company TBC-Energy has took over one electricity distribution company in a major privatization deal totalling USD 317 450 000, Georgian Prime Minister Zurab Nogaideli said on June 20.

The Czech company Energo-Pro has bought United Energy Distribution Company (UDC) and Energy Distribution Company of Adjara, as well as six hydro power plants: Lajanuri, Rioni, Gumati, Shaori, Dzevrula and Ats for a total of USD 312 million 350 thousand, according to the Economy Ministry.

TBC-Energy, which is part of the Georgian TBC Group, has paid USD 5,1 million for the Electricity Distribution Company in Kakheti, eastern region of Georgia.

There were total of three electricity distribution companies and six hydro power plants put for sale. Initial total price for all these facilities was USD 119 million.

Eight companies were competing for these energy facilities, including the Russian giant United Energy Systems (UES), which made its bid for two hydro power plants – Ats and Dzirula – and was ready to pay USD 4,5 and USD 20 million, respectively. UES was also bidding for Adjara Electricity Distribution Company, offering USD 6 million.

The Russia’s UES failure to win comes as a surprise, as President Saakashvili said in an interview with Imedi television aired on June 18 that the UES has took over some of the Georgia’s energy facilities, while others were bought by a western and Georgian companies. Saakashvili’s statement came two days before the official results were announced.

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