Business News Society, 05/08/2017

Americans to Help to Privatize Kharkivoblenergo in 2018

The State Property Fund of Ukraine signed an agreement with the US Agency for International Development and two American firms to assist in the privatization of Kharkivoblenergo (regional energy utility company).

The world-known accounting and consulting firm Deloitte & Touche will assist in the preparation for the sale of seven joint-stock companies. In addition to Kharkivoblenergo, energy supply companies from Mykolaiv, Khmelnytskyi, Cherkassy, Zaporizhia, Ternopil as well as Centerenergo (Donetsk, Kyiv and Kharkiv regions) are going to be put on the market. The Head of the State Property Fund (SPF) Dmytro Parfenenko said that the sale is planned for the next year.

The authorities want to sell these assets because owning and managing them is difficult. Oblenergos have accumulated multi-million debts to suppliers. Simultaneously, they can be used to quickly complement the budget: these energy-related facilities have always been profitable. Previously, the property fund stated that the initial price of each regional energy supply company will range between $10 million and $60 million. Now officials say it is not the purchase price that’s important but the volume of investments the buyer is ready to allocate.

Recall, Kharkivoblenergo was going to be privatized in 2013. In 2016 there was a plan to sell the company for $73 million, but then the auction was rescheduled.

Text: Iryna Klymenko

Photo: Status Quo