Plan to split PPC is announced

The government announced on Wednesday details of its plans for the privatization of electricity giant Public Power Corporation (PPC), starting with the concession of 49 percent of its transmission network to private investors within 2013. This will be followed by the sale of 30 percent of the company’s production capacity that will form the portfolio of a new company, dubbed “small PPC,” while a 17 percent stake in PPC will be conceded later.

The plan released by the Environment and Energy Ministry has already secured the approval of the country’s creditors and will be put up for approval at the next cabinet meeting before being tabled in Parliament for voting.

Kathimerini understands that French, Italian and German companies have been eagerly awaiting the final plan for splitting up PPC, as have potential investors from Qatar and China. The plan forms part of the country’s commitments to its creditors.

The privatization of the PPC grid will start with the entry of an investor via a share capital increase in operator ADMIE, along with the undertaking of the company’s management. The contract with the preferred bidder will provide for the acquisition of the remaining 51 percent by PPC so that ADMIE ownership can be split, allowing PPC to have a say in operations throughout the network. The completion of the transmission networks’ privatization is set for the second quarter of 2014.

The creation of the “small PPC,” with about a third of the corporation’s capacity, should be done by 2015. The new power company should acquire a similar percentage of the PPC’s commercial activity. It will get plants producing 1,400 megawatts through lignite – with full access to lignite mines, 500 MW of hydroelectric capacity and 500 MW of natural gas-powered capacity.

The sale of 17 percent of PPC, currently held by the state privatization fund (TAIPED), will start after the sale of the plants and be completed by the first quarter of 2016.