DEPA partial privatization running into complications (30/10/2003)

Πεμ, 30 Οκτωβρίου 2003 - 11:27
The Finance Ministry is preparing a legal provision to enable Spain’s Gas Natural, the sole firm to make a binding bid for a 35 percent interest in the Public Gas Corporation (DEPA), to buy itself out of the investment in a few years; time if the returns are not in line with those expected in the utility’s business plan – around 7.5 percent, main opposition New Democracy party deputy Thanasis Nakos reveuled last week according to. Official sources the sale is evolving into “a particularly complex affair,” with DEPA’s growth prospects largely dependant on the development of private power plants, which in turn expect low gas tariffs. The Spaniards are said to be demanding solid pricing guarantees for a 15-year period, wich is seen as posing a significant political risk for Economy Minister Nikos Christodoulakis. The government, which controls 65 percent of DEPA, is hoping to raise about 300 million euros from the sale.