Energy, Financial Services, Investments, Latvia

Latvenergo board chairman Karlis Mikelsons and board member Aigars Melko acknowledged this to the newspaper, whereas Economy Minister Artis Kampars said that this is a noteworthy idea, because it means that Latvenergo would not have to seek involvement of the state in the second round of the 2nd cogeneration plant reconstruction project, informs LETA.

However, this will require amending several laws which state that Latvenergo is a 100 percent state-owned company. A national referendum was organized in 2000 to prevent possible privatization of Latvenergo, and the voters supported retaining Latvenergo as a fully state-owned company.

Latvian Free Trade Unions Association's deputy chairman Egils Baldzens confirmed that a referendum may be organized again if someone insists on privatization of Latvenergo or part of the company.

Latvian Academy of Sciences President Juris Ekmanis emphasizes that inclusion of Latvenergo shares in the stock exchange is a covert privatization attempt.

"If Latvenergo was a private company, it would be a very good decision as it would allow the company avoid taking new loans, and the company could get the money it needs without raising tariffs," Ekmanis told the newspaper Dienas bizness. If there were three companies such as Latvenergo in Latvia, privatization would not be a problem, but, given that Latvenergo is largely a monopoly, Ekmanis disapproves of the idea.

"NASDAQ OMX Riga" board chairwoman Daiga Auzina-Melalksne believes that such a large company as Latvenergo will be interesting to investors even if just a small part of its shares is traded at the stock exchange.

"Attracting capital and being a member of the stock exchange would strengthen the competitiveness of Latvenergo, make its operations more transparent and give Latvian pension funds and residents an opportunity to invest their money in the company," Auzina-Melalksne commented.