Powergen
deal sits well with Government
By Juhel Browne
Trinidad Express
Port
Spain
Petroleumworldtt.com
05 13 07
Energy Minister Dr Lenny Saith says the decision
by Atlanta-based energy giant Mirant to sell its
39 per cent shareholding in the Power Generation
Company (Powergen) does not mean the privitisation
business model for that sector has failed.
"No, no it's not a failure at all," Saith
said in a recent interview.
The
Government, in 1994, decided to liberalise the
then fully State-owned electricity producing
arm of the Trinidad and Tobago Electricity Commission
(T&TEC) by sell off its shares in the operation.
Mirant acquired 39 per cent of those shares in
1994 when Powergen was established as a private
sector owner and operator of three electricity
generating plants.
T&TEC
owns 51 per cent of Powergen's shares while bp
ownes 10 per cent.
On April 19, Mirant announced it Caribbean assets,
including its shares in Powergen, are to be sold
to a subsidiary of Japan-based power giant Marubeni,
for US$1.082 billion with the transaction to be
finalised by mid-2007.
Mirant said the sale of its shares in Powergen
related to a debt of approximately US$350 million
and power purchase obligations of approximately
US$153 million.
Saith
said the transaction will not see the State eventually
reacquiring ownership of Powergen's
three plants and noted that a new electricity plant
that is to be built in La Brea would be "all
private sector."
He said the Government took note of the fact that
Mirant did not sell its shares in Powergen to a
company that was unfamiliar with the business.
"From my understanding, they have sold it
to a Japanese corporation which is in fact in power
generation so we are back to somebody, a partner,
who is in power generation and not people who just
bought it as an investment," he said.
Business Express asked Saith if Mirant had informed
the Government of its decision to sell the shares
prior to the announcement last week.
"They had informed the Government that they
had it up for sale right and they have since informed
us that they have had a buy-out so we have to look
now at the terms and conditions of those things," Saith
said.
Trinidad
Express
Wednesday, May 9th 2007
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