Baltic States – CIS, Energy, Estonia, Funds, Russia

"In May this year we sold the core equipment of the CHP plant, which has been dismantled at Painkula by now," Eesti Energia spokesman Kaarel Kuusk told on Friday. He said the buyer is based in Russia, but refused to offer details citing a confidentiality clause contained in the contract.

Eesti Energia is now trying to find a buyer for the remaining equipment and land.

"We have contacted more than 100 businesses all over the world which could be interested in equipment like this," the spokesman said. He said the plant's cold producing equipment, which is very specific, will be dismantled by Eesti Energia and taken to a storage facility near the Iru power plant to wait for a buyer.

Asked about the size of the loss sustained by Eesti Energia in the project, Kuusk said he cannot answer the question because the process to sell equipment and the land is still ongoing and the net outcome depends on what price will be paid by the buyer or buyers.

Eesti Energia built the CHP plant at Painkula in spring 2012 to serve Weroli Tehased AS, a holding of businessman Rein Kilk. Kilk was a member of the supervisory board of Eesti Energia at the time.

The investment by Eesti Energia amounted to approximately 5 mln euros.

Following the bankruptcy of Werol in April 2012, the plant was bought by Baltic Agro AS, which was not interested in the CHP plant.