Government Unveils Plan over Privatization of Energy Facilities

At the cabinet session on March 2 Georgian State Minister for Economic Reform Issues Kakha Bendukidze announced that the government plans to unite most of the state-owned energy facilities into one company in an attempt to privatize it.

He said income totaling to around 200 million Lari (approximately USD 108,6 million) is expected from this privatization, adding that these funds, received from the privatization, will be allocated for energy sector rehabilitation projects.

Kakha Bendukidze also said that only high-power transmission lines, Enguri hydro power plant, which is located at the administrative border between breakaway Abkhazia and rest of Georgia, as well as Vardinl hydro power plant will not be privatized.

The United Distribution Company (UDC), currently managed by the U.S. company PA Consulting, which distributes electricity in the regions throughout Georgia, will also be included in the list of energy facilities put on privatization.

But the PA Consulting, which manages UDC and represents the USAID contractor in Georgia, says it was not notified by the Georgian government about the plans to privatize the distributing company.

General Director of the UDC Dean White said at a news conference on March 2, that he is surprised by this decision, as privatization of the UDC was a long-term plan which was expected to take place at least after two years.