VILNIUS - The question over who gets to build Lithuania's new nuclear plant is now being decided, with the front runner expected to be a newly formed investment consortium comprised of three existing companies, two of which are state-owned.
Unofficial sources point to power grid operator Rytu Skirstomieji Tinklai (RST), as getting a 20 percent stake in the new company, while electric utility Lietuvos Energija should receive a 41 percent stake. The Lithuanian state is the majority owner of both, giving it a 61 percent interest in the new operation.
Private equity investor NDX Energija, owner of power grid operator VST, is expected to take the remaining 39 percent stake.
According to preliminary estimates, the construction of the new nuclear power plant could cost between 2.4 - 4.0 billion euros. The consortium would get the commission to build the new facility, which is expected to go on line by 2015 and will replace the existing Ignalina nuclear plant, scheduled to be shut down in 2009.
International auditing company KPMG Baltics, conducting due diligence on the participating companies, has already submitted its results to the Ministry of Economy, which show VST to be worth 840 million euros, RST 631.5 million euros, and Lietuvos Energija 898.5 million euros.
Talks between the government and NDX Energija in negotiations over each party's stake in the project are being led by Minister of Economy Vytas Navickas. Any draft agreements signed will have to be confirmed by the Cabinet.
The agreement on the consortium's by-laws and the shareholders' agreement are scheduled for signing on Nov. 15. Then, at the end of this month, the shareholders of the new company should approve an issue of new shares, which the government and NDX Energija would finalize by Dec. 14.
Draft agreements specify the numerous safeguard procedures for the government, including its first right of purchase of shares if put up for sale by NDX Energija, and if NDX Energija owns at least 1/3 of the votes. After a certain designated period NDX Energija could sell its shares without restrictions, although any buyer would have to meet transatlantic and European integration criteria.
The Lithuanian state currently owns 71.35 percent of RST and 96.62 percent of Lietuvos Energija.
