BRATISLAVA, April 7, (WEBNOVINY)- The Cabinet has changed its decision to privatize 100-percent stakes in Slovakia’s six biggest heating plants. “We will not finance balls in Hilton hotel of the cream of SMER from the Kosice heating plant or other heating plants,” said Prime Minister Iveta Radicova following the Cabinet’s sitting on Wednesday. The municipalities where the to-be-privatized heating utilities are located will gain five percent of their stakes free of charge. The municipalities will also be given the right to convene general meetings of shareholders. A contract with the investor will also secure presence of representatives of a town in a supervisory board. According to the prime minister, none of the six municipalities where heating plants are located have finances necessary to buy new technologies. Over EUR 740 million should be injected in the heating plants.
Earlier in the day parliament turned down the proposal of the strongest opposition party SMER-SD to prevent the privatization of state-run heating companies. SMER-SD argued that the price of heat for inhabitants will grow after the privatization, which is the usual scenario so far in the privatization of strategic energy companies. According to the party, which tailored and submitted the amendment the contribution from the heating plants’ profits to state coffers is not negligible. In contrast, the coalition says that soon it will be necessary to invest great amounts in the heating plants.
The Cabinet cleared the sale of 100-percent stakes in six largest heating plants two weeks ago. The process is to be kickstarted in the second half of the year in selection of the consultant and due diligence in heating plants. Authors of the analyses forecast that investors could submit final bids in March 2012. Early parliamentary elections in 2006 thwarted the plan of the second government of Mikulas Dzurinda to privatize six largest heating plants.
SITA