Russian-Lithuanian-American consortium to privatize power station in Lithuania

The Russian-Lithuanian-American consortium headed by the Gazprom gasholding (Russia), won the tender for privatizing the Kaunas HydroelectricPower Station (Lithuania). This decision was made by the Kaunasadministration today. The consortium offered LTL116.5m (about $33.1m) forthe power station. Additionally, it is to invest LTL400m (about $113.6) init. The other potential buyer was Fortum Power and Heat Oy (Finland), whichhad offered LTL115m (about $32.7m) for the station and LTL56n (about$15.9m) in investments. As the power station is an affiliate of the KaunoEnergija company, the decision on the privatization should be adopted byKauno Energija shareholders' meeting on September 30, 2002.As the ELTA news agency (Lithuania) reported, the consortium headed byGazprom, is going to start negotiations with the European Bank forReconstruction and Development on the investments in the power station.These negotiations are to be completed by the end of October.Kaunas Hydroelectric Power Station produces 90 percent of the heat consumedby the city of Kaunas. The balance cost of the power station is LTL118m(about $33.04m). Kauno Energija was intending to sell it for at leastLTL108m (about $30.7m), eventually reducing its debts, which amounted toLTL250m (about $71m).Gazprom is also discussing the possibility of participation in projects forconstructing gas storage facilities in Lithuania. Gazprom is going toimplement this project jointly with the Dujotekana company (Lithuania).Additionally, the gas holding is intending to independently participate inthe tender for selling 34 percent in the Lietuvos Dujos company as a gassupplier, not in a consortium with Dujotekana as it was previouslyreported..


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