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Archive 2007

  • 04.10.2007

    Breakthrough for Electricity Sector Privatization? The Proposal of the Ministry of Fuel and Energy

    (Code:W8)

    Ukraine’s electricity sector is in urgent need for investments. To improve matters, the Ministry of Fuel and Energy (MinF&E) proposes attracting strategic investors by privatizing significant parts of state-owned generation and distribution companies and using the revenue to finance additional investments.

    Our evaluation of this proposal starts by characterizing the present situation of the electricity sector as a vicious circle where low profitability and competition levels have distracted investments so that assets have depleted and efficiency has declined for many years. As a result, investment needs have reached dramatically high levels. A proposal to develop the sector must be evaluated against its ability to attract urgently needed investment.

    Authors:  Pavel Ferdinand, Крикавський Олег, Юзефович Інна
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