PERTH, March 5 - The government of Australia's New South Wales state is sounding out private sector interest in its revised power privatisation plans, which it plans to complete by the end of the year, it said on Thursday.
The government in November revised its power privatisation plan after its previous proposal was voted down following fierce protests from labour unions.
Under the latest plan, the state will retain ownership of power plants, but will sell electricity trading rights to private operators. The state's power retailers and land on which to build new power plants will also be sold.
Under the previous plan the existing power plants would also have been sold.
Despite the global economic downturn and credit crunch, the government said it expects very significant interest in its power assets.
"Players out there have made it very clear that they are cashed up and waiting for the opportunity to invest," New South Wales Finance Minister Joe Tripodi told reporters, adding that international investment would be encouraged and pension funds could also come forward.
Companies that have publicly expressed interest in the state's power assets include Australian energy retailer AGL Energy Ltd and energy firm Origin Energy.
Tripodi declined to comment on how much the sale process would fetch, but investment bank Morgan Stanley has estimated that the sale proceeds could be around A$10 billion ($6.5 billion).
The government said it was still considering whether to sell the power retailers, which include EnergyAustralia, Integral Energy and Country Energy, through a direct auction or an initial public offering.
The state was also considering whether to sell the assets concurrently or sequentially, and will make a decision after getting feedback from the market, Tripodi said. ($1=1.543 Australian Dollar)
The government in November revised its power privatisation plan after its previous proposal was voted down following fierce protests from labour unions.
Under the latest plan, the state will retain ownership of power plants, but will sell electricity trading rights to private operators. The state's power retailers and land on which to build new power plants will also be sold.
Under the previous plan the existing power plants would also have been sold.
Despite the global economic downturn and credit crunch, the government said it expects very significant interest in its power assets.
"Players out there have made it very clear that they are cashed up and waiting for the opportunity to invest," New South Wales Finance Minister Joe Tripodi told reporters, adding that international investment would be encouraged and pension funds could also come forward.
Companies that have publicly expressed interest in the state's power assets include Australian energy retailer AGL Energy Ltd and energy firm Origin Energy.
Tripodi declined to comment on how much the sale process would fetch, but investment bank Morgan Stanley has estimated that the sale proceeds could be around A$10 billion ($6.5 billion).
The government said it was still considering whether to sell the power retailers, which include EnergyAustralia, Integral Energy and Country Energy, through a direct auction or an initial public offering.
The state was also considering whether to sell the assets concurrently or sequentially, and will make a decision after getting feedback from the market, Tripodi said. ($1=1.543 Australian Dollar)
