Ukraine hires int’l advisers to privatize Centrenergo, large power DisCos

The State Property Fund (SPF) of Ukraine has reached an agreement with USAID that Deloitte Consulting Overseas Projects will help Ukraine to privatize its largest electricity sector companies: power GenCo Centrenergo (CEEN UK) and three power DisCos, including Kharkivoblenergo (HAON UK), Zaporizhiaoblenergo (ZAON UK) and Mykolayivoblenergo (MYON UZ), the SPF reported on Dec.  23. The adviser will perform due diligence of the assets and provide recommendations regarding the ways of their possible restructuring and their fair price for potential buyers.

Alexander Paraschiy: This is encouraging as hiring international advisers increases the chances that some of the assets will be put for sale in the next year. In the draft 2016 state budget, the government foresees UAH 17 bln in proceeds (about USD 0.7 bln) from the privatization of state property. The same proceeds were planned for the 2015 budget, but this plan was met, so far, by only 0.8%. In particular, in 11M15, the SPF received UAH 0.144 bln from sale of state property. With such a result, this year’s privatization proceeds have all the chances to become the smallest since 1997.