MARKOVIĆ: We don't plan to put EPS up for sale before 2015

The CEO of the Electric Power Company of Serbia (EPS), Dragomir Marković, said that the privatization of that public company should be carried out through additional capitalization and pointed out that the sale should not be expected before 2015. Marković explained in the interview for eKapija that the privatization would start with the distribution of free stocks, after which the whole company would be sold.

- EPS will enter the privatization process by distributing free stocks. After that, 15% of the company will be privatized. We still don't have clearly specified model of further sale. But what we already know is that the company will not be offered for sale in parts because the best effect will be achieved if the conpany is sold as a whole. We do not want to tear the system because that synergy is the biggest value of our company - the CEO of EPS explained.

He said that the companies interested in additional capitalization of EPS were some of its potential strategic partners in construction of steam power plants in our country - ČEZ from Czech Republic, Edison from Italy and RWE from Germany.

- Our nominal value currently amounts to about 6bn EUR, but it is clear that none of aforementioned company would set aside that much money for EPS. The company's value is determined by the incomes it registers, and we can not take pride in a big profit. The reason for that is low price of electric energy. If the price of electricity in Serbia was the same as in Macedonia, our annual profit would amount to about 200m EUR, and if it was the same as in Croatia, we would make nearly 0.5bn EUR worth of profit every year.

According to some earlier announcements, the bids for construction of Steam power plant Nikola Tesla B3 of 700 MW are being prepared by ČEZ, Edison and RWE, while Czech and Italian company remained in the tender procedure for construction of Kolubara B. The agreement on modernization and construction of new block in steam power plant in Kostolac has been made with the partners from China.

Marković explained that the strategic projects for construction of steam power plant, started by EPS, could be used for additional capitalization of that company and reminded that transformation of EPS into stock company can be expected in 2010.

- New power plants will be independent manufacturers of electric power, while EPS will have minority share of, let's say, 20 or 30%. The remaining share will be in the possession of the companies that we choose for strategic partners. EPS can be additionally capitalized through their share in future joint venture. Therefore, if they own 80% of capital of the future power plant, they can have the share of 7% in EPS.

Investments worth 9bn EUR prior to 2015

Marković said in the interview for Tanjug that EPS's investment plan prior to mid-2015 anticipated investments worth more than 9bn EUR.

He specified that the sources of those funds were different and that about 3.5bn EUR would be provided from EPS's own source. According to him, strategic partners will provide about 2bn EUR, while over 3bn EUR will be obtained from the loans.

- Realization of aforementioned investment program prior to 2015 will enable EPS to maintain the level of development - Marković pointed out and added that the company would invest about 1bn EUR in environmental projects.