The Czech daily HN reports that the Social Democrats, which form the majority in the new Cabinet, remain committed to CEZ privatization not sooner than 2004/2005, despite speculation related to the need for revenue for the state budget. We believe that the state will first set its policy with regard to all energy-related industries, which should take 9-12 months, and we would not expect a CEZ tender to commence before this is accomplished. Nevertheless, we believe the Cabinet may decide to start the tender at the end of 2003.
Jiri Soustruznik