Czech govt decides to create strategy for state stakes in firms

"We want to create a relatively broad strategy that will be transparent and known to public and will define the state´s position as an owner," Necas said.

The material should define strategy priorities for state stakes in companies involved, for instance, in the energy and transport sectors, according to Necas.

The strategy will distinguish between firms in which the state wants to keep or increase it stake and firms in which the state might offer a certain part of its stake for sale.

After the situation on the market improves, the state might sell, for example, a part of the Cesky Aeroholding group, which comprises of airport operator Letiste Praha and air carrier Czech Airlines, Necas said.

On the other hand, the state does not plan to reduce its 100-percent participation in power grid operator CEPS. "In the energy sector, we do not want to reduce the state´s stake," Necas said.

The strategy should also help to prevent disadvantageous sales of state property. For instance, the sale of petrochemical group Unipetrol to Poland´s PKN Orlen in 2005 was premature, Necas said.

The cabinet today also approved a draft amendment to the law on emergency oil reserves which proposes to increase reserves of crude oil and oil products from 90 to 100 days. In the next two years, Kc4.4bn up to Kc4.7bn should be earmarked for this from the state budget, Necas said.

The bill is yet to be passed by the Parliament.

The planned increase is connected with a change in the method of calculating the reserves.

According to Necas, the volume of oil reserves will virtually increase by 10 to 20 percent. The aim of the measure is to strengthen the country´s energy security, he added.

The government also passed a draft amendment to the Commercial Code under which the payment discipline of companies should improve. Newly, the maximum length of the term of payment should be 60 days and interests on overdue payments should by at least 8 percentage points above the central bank´s rate.

The government also approved draft contracts with developer CTP in order to prevent an international arbitration which the Czech Republic would most likely lose. CTP has sued the Czech Republic for at least Kc2.2bn. It claims it was harmed by the Czech state during the sale of land near thy D5 motorway in 2005.

The government also approved a sale of redundant assets of the SZDC railway infrastructure administration company worth nearly Kc15m. The government wants to offer 30 land plots and buildings to private buyers.

The cabinet also approved parameters of a public tender for modernisation of railway route between Horusice and Veseli nad Luznici. According to preliminary estimates, the value of the contract is almost kc1.7bn, Transport Ministry spokesman Martin Novak told CTK.

Author: ČTK
www.ctk.cz