NC ECU needs USD 17.5 bln investments into thermal power plants

Four Ukrainian generation companies (Centrenergo (CEEN: HOLD), Dniproenergo (DNEN: BUY), Donbasenergo (DOEN: BUY) and Zakhidenergo (ZAEN: HOLD), where the National Energy Company of Ukraine (NC ECU) has controlling stakes, require USD 17.5 bln in investments to modernize their thermal power plants by 2018, NC ECU President Volodymyr Zinevich said on Friday at the International Energy Forum in Kyiv. According to him, USD 0.8 bln of this amount will be needed to bring GenCos’ metering and regulation equipment up to international standards; USD 11.9 bln would go toward reconstruction and extension of the service life of generation equipment; USD 4.8 mln would be directed at compliance with EU ecological standard. Zinevich said the only way to raise funds is to privatize the state’s 60%+1 stakes in these thermal power generation companies to a strategic investor. Alexander Paraschiy: Despite agreement between major Ukrainian political forces that GenCos’ privatization is urgent, the process is unlikely to get started in 2008, as it has become one of the key political stumbling blocks between the President and Prime Minister.