Tbilgazi Privatization Tender Announced
Georgian authorities have announced a tender for the privatization of the Tbilisi gas distribution company Tbilgazi, Prime Minister Zurab Noghaideli said on April 14.
The starting price is USD 12.5 million, Tbilgazi spokesperson Eka Saria said. May 12 is the deadline for accepting privatization bids.
“Bankruptcy procedures at Tbilgazi will be over by May 12 and the new investor will take over by that time,” Prime Minister Zurab Nogaideli said on April 14.
Last December the Georgian economy minister and a top executive of the Kazakh state-run KazTransGaz company signed a memorandum in Tbilisi stating that the Kazakh company would buy 100% of shares of TbilGazi. However, the amount of the deal was not indicated in the memorandum.
Tbilgazi spokesperson Eka Saria said that the December memorandum with the Georgian authorities will give “certain privileges” to the Kazakh company during the tender.
“The Georgian side decided not to privatize Tbilgazi through direct sale. We may sell it for a greater profit through a tender; however at this stage priority is given to the Kazakh company,” she told Civil Georgia on April 14.
