On April 12, 2012 the Parliament of Ukraine adopted in whole the Draft Law No. 9713 dd. January 16, 2012 "On Amendments to Certain Laws of Ukraine on Privatization". In favour of this draft law voted 243 people's deputies.
The Law amends article 5 of the Law of Ukraine "On State Property Privatization" by excluding combined heat and power plants from the list of the state-owned property not subject to privatization but subject to corporatization.
Thus, 13 combined heat and power plants are excluded from the list of state-owned property. The explanation note to the draft law states that "in order to prevent negative influence on the economy of Ukraine, considerable increase of prices for imported natural gas, optimization of price increase for fuel balance directed at decrease of natural gas consumption and its replacement with other alternative fuel types, in particular, coal, the Ministry of Energy and Coal Industry prepares a program of technical re-equipment of combined heat and power plants. Implementation of such program will require non-state investments that could be raised through transfer of state enterprises – combined heat and power plants into lease or concession. At this, one of the main terms of the respective agreements is that the future lessee or concessionaire has to switch the plant to alternative fuel types – coal.
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