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Privatization of the biggest power plants opens smoothly.
submited on 02.05.2005 in category Political stability | Regulated markets | Privatisation
submited on 02.05.2005 in category Political stability | Regulated markets | Privatisation
The initial offers for three of the biggest thermal power plants in Bulgaria revealed a huge interest by international players. From a macroeconomic standpoint it is generally unimportant who the owners will be. Moreover, from the privatization tradition in the country we know that it is too early to speculate on the name of the potential winners.
The new owners will enter a market, which has been gradually being liberalized for the last couple of years. They can now freely sell directly to big industrial players without going though the state-owned power transmission company NEK. However for their exports they will have to negotiate with NEK.
The domestic market is still not open to the competition from EU members. This must happen by mid-2007. This same process would widen the market for the local producers, which will be a significant change taking in consideration even only the neighboring Greece and Romania. In a foreseeable future Turkey is likely to join the common market as well, which improves substantially the prospects of the local power producers.
The privatization of the three of the biggest power plants – the thermal plants in Varna, Bobov Dol and Rousse – follows the privatization of a number of small hydro-power plants as well as of the power distribution networks. So far the process of property transfer in that sector has been going on smoothly with fairly quick procedures and a substantial investor interest. There is no reason to expect a different story about the three thermal plants if the current administration manages to finalize the deals during its mandate.
The new owners will enter a market, which has been gradually being liberalized for the last couple of years. They can now freely sell directly to big industrial players without going though the state-owned power transmission company NEK. However for their exports they will have to negotiate with NEK.
The domestic market is still not open to the competition from EU members. This must happen by mid-2007. This same process would widen the market for the local producers, which will be a significant change taking in consideration even only the neighboring Greece and Romania. In a foreseeable future Turkey is likely to join the common market as well, which improves substantially the prospects of the local power producers.
The privatization of the three of the biggest power plants – the thermal plants in Varna, Bobov Dol and Rousse – follows the privatization of a number of small hydro-power plants as well as of the power distribution networks. So far the process of property transfer in that sector has been going on smoothly with fairly quick procedures and a substantial investor interest. There is no reason to expect a different story about the three thermal plants if the current administration manages to finalize the deals during its mandate.
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