Saturday, November 04, 2006

Executives say ELEM faces tough time

JSC Electric Power Plants Macedonia (ELEM) finds itself in a poor situation in terms of technical equipping and finances, but will put all effort—Ā to fulfill its share of obligations in power production.

Vlatko Cingovski, the general manager of ELEM, said this today at a press conference, at which he presented the new executives and the situation they found company to be in.

The company will request from the Government to allow selling of 30 percent stake of the company in order to overcome the financial problems.

Presenting the company's balance sheet, Cingovski said it indicates a positive balance totaling 9 million euros, at least on paper, since ELEM's debts amount to 128 million euros, compared to 137 million euros owed to the company.

The company's director singled out lack of a clearing house for settling accounts among all companies involved in power related operations on a daily basis, lack of competition and depressed prices, as the main reasons for the week financial situation of the company.

Cingovski accused the previous managerial team for the poor situation of the power production company.

He confirmed press reports that coal stock in REK Bitola is depleted. Moreover, the existing coal supplies are of very poor quality, which might result in damaged turbines.

"The situation in the coal mines is disastrous. It will take months to put them in order", Cingovski warned.

On the other hand, he pointed out that the situation with the hydro electric plants is much better, primarily due to the favorable weather conditions, which resulted in exceeding of the planned production by 153 percent.

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