In response to reported US concerns regarding the transparency of Czech power-sector privatization, Prime Minister Milos Zeman said that the highest bid will win, and that the government does not discriminate against any of the bidders. The Pravo newspaper also suggests that the Cabinet may discuss CEZ privatization this Wednesday at its regular meeting, though the official Cabinet program includes only one CEZ-related item, namely a regular report on progress in Temelin nuclear plant construction. Neutral-to-slightly negative.
Hospodarske noviny newspaper says that the draft power-sector purchase agreement, which the tender winner will have to sign, includes very high penalties for violating privatization conditions such as the commitment to purchase a certain amount of Czech coal per year for a fixed period. Neutral.
Separately, the European Commissioner for Enlargement, Guenther Verheugen, has spoken in favor of the Czech Republic closing the “energy” chapter in its EU-accession negotiations before the end of the year. Furthermore, Verheugen urged the Czech Republic and Austria to conclude the Melk process of the Temelin safety assessment so that the energy chapter can be closed. Closing the Melk process and the energy chapter would be positive news, also for CEZ, but at this stage the commissioner’s statements are neutral.
(Ondrej Datka)