Cabinet opts not to privatize Riga Heat

  • 2006-01-11
RIGA 's The Cabinet of Minister decided on Tuesday not to sell its stake in Rigas Siltums (Riga Heat), reversing an earlier decision to go ahead with the privatization in September.

The decision was not a surprise, though it took place amid controversy and pressure from foreign investors. Dalkia International, a French-owned utility with operations across the world, and which owns 2 percent in Riga Heat, had proposed an in-depth investment plan for the company. However, along with another proposal from a Finnish company, it was rejected.

Cabinet ministers based their decision on the need to maintain control over the strategic asset until distribution operations are better coordinated.