The Czech MFDnes daily reports today that Electricite de France (EdF) is preparing a new bid in the CEZ privatization tender. However, the paper also said that EdF has unofficially informed the Czech government that it will either submit no bid or that its bid will not meet required conditions (new bids should be submitted by Monday, January 7; the Cabinet should discuss CEZ privatization on Wednesday, January 9).
Separately, the Czech Press Agency reports today that Iberdrola wants to join Enel in this second round of bidding.
The Czech HN daily reports that some among the ruling Social Democrats want the CEZ tender to be canceled. This confirms our opinion that the tender is likely to be canceled owing to the very restrictive privatization conditions of the current tender (especially the required minimum price of CZK 200 bil. for CEZ and six regional distributors). Although the minister of industry indicated that CEZ could also be sold directly (i.e., without a tender), we believe this scenario to be unlikely. It is rather likely at the moment that CEZ privatization will be delayed at least till the second half of 2002 (after the June general election). Negative, but generally expected.
The Czech Press Agency also reports that 90% load test of the Temelin nuclear power plant’s first reactor were completed yesterday; 100% load tests will follow. Expected.
(Jiri Soustruznik)