United Energy Distribution Company of Georgia (UEDC) and Distribution Company of Adjara (EDCA)

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In February 2007, the Government of Georgia sold 100% stake in the United Energy Distribution Company of Georgia (UEDC) and the Energy Distribution Company of Adjara (EDCA) to Czech company EnergoPro. As a result Energo-Pro became the leading electricity distributor in Georgia, with control of 62.5% of country’s market or total of 875,000 consumers, mainly in western Georgia.The United Energy Distribution Company of Georgia had 730,000 customers and distributed electricity in Imereti, Kvemo Kartli, Guria, Samegrelo-Zemo Svaneti, Samtskhe-Javakheti, Mtskheta-Mtianeti and Shida Kartli regions of Georgia. Located in Western Georgia, the Energy Company of Adjara served 95,000 residential customers. United Energy Distribution Company of Georgia was managed by PA Consulting, which was a USAID contractor in Georgia, under a management contract from 2003 to end of 2006. EnergoPro won the stake in distribution companies at the public tender held in June 2006 by offering the highest price for the utilities. EnergoPro was active in energy generation and trading focusing on Central and Eastern European energy market. A total of eight, both local and foreign, companies made their bids for purchasing electricity facilities. Among the bidders were the RAO UES, Czech company Energy-Pro, Georgian TBC Group's TBC Energy; Luxtron Energy; Unitrade Service; Geo Steel, Falcon Capital, and SB Energy. The initial bidding price for the UEDC was US$30 million and for the EDCA was US$5 million. The agreement reached financial closure on February 5, 2007. Under the final agreement Energo-Pro was to pay the Government about US$38.8 for the two distribution utilities and to invest over US$100 million in modernizing the electricity network covering the service territory of UDC and ECA. Energo-Pro’s investments in Georgia were to be implemented with the support of the Czech state-run Export Bank, which supported the company’s foreign investments since 2002. Export Guarantee and Insurance Company (EGAP) of the Czech Republic was providing risk insurance associated with the investments in Georgia. 2011 capacity http://www.energo-pro.com/?Template=OurGroup&LanguageID=1 financial investment in govt assets and facilities is a pro-rata, for inv in govt assets based on the breakdown of the initial bid price, for physical inv based on number of connections