|
16 August 2004 - Three international energy groups CEZ of the Czech Republic, Enel of Italy, and RAO United Energy System of Russia will have to resubmit binding bids for a two-thirds stake in dominant Slovak electricity generator Slovenske Elektrarne by September 3.
The move demonstrates the complexity of the Slovak company, and the many problems associated with its privatisation, after a steering committee last week sought further clarification from potential investors because their various assumptions had made their bids hard to compare.
Enel's bid, for example, counted on cancelling Slovenske Elektrarne's less advantageous contracts, such as electricity purchases from the independent Paroplynovy Cyklus (PPC) power plant or the supply of electricity to aluminium mill Slovalco.
While the Slovak media said Enel had submitted the highest bid, its offer was highly qualified by the assets and contracts it sought to exclude.
"The problem we have had is that the three bidders, in addition to submitting binding bids, also defined various underlying assumptions," said Peter Mitka, of government advisers PwC. "Some need to be discussed between us and the seller, so we can understand which are reasonable and which not."
Bidders will not be asked to increase their bids.
The privatisation is further complicated by two of Slovenske Elektrarne's ageing nuclear blocks at Jaslovske Bohunice power station, in western Slovakia, which have to be decommissioned in the next two to four years. UES, bidding with Ros-EnergoAtom of Russia, is willing to acquire those assets, but CEZ and Enel are not.
With the Russians apparently happy to acquire the reactors, Slovak economy minister Pavol Rusko has told the domestic press that CEZ and Enel would have to bid considerably more than UES to succeed.
Some analysts believe Mr Rusko's perceived favouritism of the Russian bid could be a tactic to force CEZ long seen as the favourite to bid higher.
| 
Articles 
| View all PennWell sites | View all PennWell events
Add RSS Feed
