About 30 per cent of the resources currently owned by the publicly owned and profitable company Public Power Corporation would be spun off to create a rival company, with a representative basket of electricity production units.
The government expects the move will help promote competition in the electricity market by adding a new player to the market.
The new company will own lignite, hydroelectric and natural gas power plants and have access to lignite mines, affording it a capacity of 1,400MW from lignite, 500MW from hydro and 500MW from natural gas.
The plan has yet to set the terms and conditions under which existing DEI customers will be transferred to the new, smaller company. But a timetable says the new company will begin operating in early 2015.
In the second stage, the state, which has a 51 per cent stake in DEI, will sell 17 per cent of DEI’s equity capital, preferably to a strategic investor.
A strategic investor will buy up to 49 per cent of Admie and provide the management.
This plan is expected to be completed this year.
Source: EnetEnglish,
ANA-MPA
