Ernst & Young estimated Lviv Zapadenergo in $ 460 million

Consulting company Ernst & Young estimated Lviv public company Zapadenergo which comprises three thermal power plants in western Ukraine providing export of electricity to the countries of Eastern Europe in $460 million - according to Ukrinform citing a government source familiar with the assessment.
According to the agency assessment have been concluded on July 1st 2011 in connection with the planned privatization of the company.

"According to these calculations, the 45.103% shares package of Zapadenergo offered for sale is worth $207.5 million" - the source said.

The auditors focused their attention on the need to invest in the next few years in the reconstruction of TPS units and construction of desulfurization, and after 2020 - in the construction of new units - he added. Assessment does not include long-term financial investments of $25.5 million, most of which is the share of unfinished Dobrotvor TPS-2. According to Ernst & Young the only source of income from Dobrotvor TPS-2 may be a sale of its steel in the form of scrap. However revenue will be approximately the costs of its preparation and implementation.

According to the spokesman Ernst & Young estimated also state-owned companies and other thermal generation companies. In particular the cost of Dniproenergo defined in 585 million dollars. In terms of this data the cost of a 25% share package, the competition for the sale of which is to be announced before the end of 2011 amounts to 146.2 million dollars. According to the source, the government estimated this package in 147.3 million dollars which most likely will be the starting price at auction.

Recall, the State Property Fund announced a tender to sell 25% share package of public company Kyivenergo and 45.103% of the Zapadenergo shares. The relevant declarations are placed in the official publication of the SPF – paper Statements of privatization of 05.10.2011 № 38.