Azerbaijan may privatize power plants

Baku. 29 December. REPORT.AZ/ In near future, "Azerenerji" OJSC, Ministry of Energy and other relevant agencies will include investment-efficiency requirements in terms of privatization and consider privatization of optimal power plants.

Report informs, "Strategic Road Map for the development of utilities (electricity and thermal energy, water and gas) in the Republic of Azerbaijan", approved by President Ilham Aliyev, declares.

According to the document, if privatization is preferred, consultations will be conducted with relevant government agencies and important assets, which are not subject of privatization from strategic viewpoint, will be identified: "Azerenerji" will determine power plants, where increase of efficiency is necessary, under feasibility study and analysis by involving experts and comparing standard indicators as well as will consider suspension of the most ineffective power plants in addition to ensuring security of supply of the new high efficiency stations. The most suitable time will be assigned to carry out improvement works in regard with these stations.

The document also states that the "Azerenerji" and Energy Minister will announce a tender to select supplier or investor for modernization on the basis of transparent criteria.

In accordance with the "Strategic Road Map", as a result of realization of this priority, in 2020, real GDP will directly reach 70 mln AZN or indirectly 5 mln AZN, a total growth of 75 mln AZN, by increasing efficiency of gas-fired power plants of the existing portfolio.