A tender to sell a 78.289% stake in power generating enterprise PJSC Centrenergo is to begin at 11:00 a.m. Kyiv time on December 13, 2018, Head of the State Property Fund Vitaliy Trubarov wrote on Facebook.

The announcement of the tender will be published in the Vidomosti Pryvatyzatsii privatization bulletin on Monday, October 29.

"The investor has 45 days to examine the performance and financial results of the enterprise and to prepare all the necessary documents," Trubarov said.

As reported, the starting price of the state stake in the power generating company was set at UAH 5.985 billion.

The conditions introduced under Cabinet resolution No. 756-r dated October 3, 2018, foresee the payment of dividends to the national budget in the amount of 30% of net profit for 2018 by Centrenergo, whereas the figure in 2017 was 75% and it was 50% in 2016.

The tender will take place only if there are two bidders.

A recommendation to use coal produced in Ukrainian mines with full identity of the cost and quality characteristics with coal of foreign origin was also added to the obligations of the winner of the tender.

In addition, the government guarantees compensation to a potential investor for losses that the generation company could potentially incur before the date of transfer of the package to the new owner. This concerns any court decisions, which entered into force after the date of transfer of ownership of the shares or the corresponding accrual of taxes, fees or fines.

Centrenergo in 2017 increased net profit by 4.9 times compared to 2016, to UAH 1.891 billion; net income rose by 2.1%, to UAH 10.918 billion; gross profit grew by 19.3%, UAH 2.529 billion.

In 2017, Centrenergo reduced electricity production by 36.2% (3.573 billion kWh) compared to 2016, to 6.285 billion kWh. Its electricity sales in 2017 fell by 36.5% (3.249 billion kWh) compared to 2016 to 5.648 billion kWh.

The large decline in power generation is linked to a shortage of anthracite coal, which is produced on the occupied areas of Donbas.

Under Centrenergo's financial plan for 2018, the company is to generate 9.371 billion kWh, which will be 1.5 times up on 2017.

Centrenergo operates the Vuhlehirsk, Zmiyivska and Trypillia thermal power plants, which have a total installed capacity of 7.660 gigawatts. The state owns 78.3% of the shares in the company.