Archive 2007

  • 04.10.2007

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


    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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