The consortium led by Gazprom has acquired property of the Kaunas thermal power station
On March, 31 in Kaunas (Lithuania) the new international company Kauno Termofikatsios Electrine (КТE) and the Lithuanian energy enterprise Kauno Energy have signed the agreement of sale of the Kaunas thermal power station property.
According to this agreement the company KTE should pay 116.5 million lits (about U.S.$35 million) for the property of the thermal power station.
Besides, new proprietors of the thermal power station should finance the investment program in the sum of 135 million lit (about U.S. $42 million) till 2006.
The given investment program is directed to reconstruct and improve the thermal power station, as well as to increase production capacity from 170 up to 250 МW.
It is expected, that the given investments will be repaid within the nearest 7 years.
On March 28, 2003 Gazprom’s Board of directors made a decision by absentee vote concerning Gazprom’s participation in the authorized capital stock of the company KTE.
At the first stage Gazprom receives 99% of KTE shares. The American company Kliment Power and the Lithuanian company Dujotekana will get 0.5% each.
Gazprom’s Board of Directors has also approved possibility of further sale by Gazprom up to 48% of KTE shares to the other two participants.
Increase of their share in KTE authorized capital stock will depend on actual participation of each of the partners in attracting finances to pay for the property of the thermal power station, to form Company’s floating assets, as well as to realize the investment program.
The tender to sale the Kaunas thermal power station, belonged to the Lithuanian energy company Kauno Energy, was announced in May 2002.
In September, 2002 the Consortium consisting of Gazprom, the Lithuanian enterprise Dujotekana and the American company Kliment Power Venture was declared as the tender winner.
The Kaunas thermal power station produces about 80% of heat consumed in the second-largest Lithuanian City.
Information Directorate, OAO Gazprom