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Thursday, August 25, 2011

Ukraine plan to permit privatization of thermal power plants

Thursday, 25 Aug 2011

Ukrainian cabinet has proposed to permit the privatization of heat generation companies as a part of the realization of a concept for a national heat supply strategy in Ukraine by 2030.

The requirement is stipulated in a draft cabinet resolution on the approval of a concept for a national strategy for heat supply to Ukrainian cities and towns until 2030, which has been posted on the Web site of the Ukrainian Regional Development, Construction and Housing and Utilities Ministry.

Sources of heat generation are thermal power plants, combined heat power plants and cogeneration plants.

According to the document, the lifting of a ban on the privatization of the said companies will permit a structural reorganization and develop competition in the heat supply area. In addition, the cabinet is planning to attract private capital under leasing and concession agreements, introduce principles of competition among heat producers and suppliers and reorganize municipal unitary companies into separate companies.

The approximate cost of the project's realization is estimated at UAH 50 billion to UAH 60 billion including UAH 14.9 billion from the national budget as a part of the realization of state programs on the energy efficiency of buildings and heat supply systems. If the resolution is passed, the Regional Development, Construction and Housing and Utilities Ministry, jointly with other executive power bodies are to draw up the draft strategy by January 1 2012 and submit it to the cabinet.

(sourced from Inerfax)


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