Ruse Thermal Power Plant

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In August 2007, the Bulgarian privatization agency signed a contract to sell 100% ownership of Toplofikacia Ruse, an combined electric power and heat energy production plant in northeastern Ruse, to the Slovenian power company Holding Slovenske Electrarne (HSE). The plant was located in Ruse near the northern Bulgarian border. At the time of divestiture, Toplofikacia Ruse had 400 MW available and 290 MW actual capacity (one power unit was standing idle) and employed 700 people. In October 2006, the Slovenian company bid US$117 million (85.1 million euro) for the plant, a sum greater than what was offered by France’s Dalkia or German’s E.ON Energie. As soon as the tender results were announced HSE sold 49% of the shares in the plant to the Russian coal and steel group called Mechel. Mechel was reported to have plans to become the sole owner of the plant within the next three years after purchase of the 49% stake. Mechel previously planned to bid on its own at the power plant's privatization tender, but failed to obtain a bidder's certificate. On December 14, 2007, Bulgaria's anti-monopoly regulator approved a request by Russia's Mechel to take a 49% stake in the Toplifikacia Ruse power plant. Mechel paid US$68.78 million (or euro 50.2 million) for the share. Mechel was the first Russian company to buy generating assets in Europe. The sale of Ruse represented an important step in Bulgaria’s privatization program. Together with Varna and Bobov dol, the plants accounted for one-fifth of the total electricity produced in Bulgaria. Bulgaria sold its power plant in Varna to the Czech electricity group CEZ in 2006. The government also planned to privatize Bobov dol. As of November 2010, Mechtel International Holdings ltd owned 100% of the shares in the company. http://www.toplo-ruse.com/index.php 2011 capex info N/Av annual reports in Bulgarian only http://www.toplo-ruse.com/finreports.php