Greece's PPC To Retain 100% Control Of Plants Under RWE Deal

Public Power Corp. SA said over the weekend that it will retain 100% ownership of renewed power plants under a cooperation deal, denying press reports that it will cede management control of a majority stake of new plants to Germany's RWE AG.
Dow Jones Newswires
Δευ, 12 Νοεμβρίου 2007 - 07:39
Public Power Corp. SA said over the weekend that it will retain 100% ownership of renewed power plants under a cooperation deal, denying press reports that it will cede management control of a majority stake of new plants to Germany's RWE AG.

"The (press) report on the collaboration of PPC with RWE - for which a relative statement has already been published - concerns the submission of RWE's proposal for the provision of consulting services (owners' engineer) to PPC, for the tendering process for replacement of aging plants," PPC said in a statement late Saturday.

"...the production in question will remain at 100% under the ownership control of PPC," it added.

The statement from PPC followed media reports last Thursday, in which PPC was cited confirming it's in talks with the German company on a EUR4 billion strategic partnership.

According to a report on the Financial Times Web site Thursday, a memorandum of understanding, which is under discussion between the two companies would give RWE 51% of equity in any new units.

After the press reports, last Friday PPC said that it has examined proposals for cooperation that were submitted by several firms, including RWE, in order to secure supply of electricity in the immediate future.

"Discussions with RWE are covering specific projects only. The obviously confidential discussions for the signing of a MoU between the firms, despite the progress made so far, are still in an early stage," it said Friday.

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