Draft budget contains a major allocation of funds to Eesti Energia

  • 2012-10-03

TALLINN - The draft 2013 State budget has earmarked an amount of up to 200 million euros for Eesti Energia, writes the National Broadcasting.

Chairman of the Riigikogu Committee on Finance Sven Sester stated that the amount will be an investment, not a State spending article.

“There is an option that 200 million euros would be invested into Eesti Energia next year; it is linked to our investment plan and next year our investment plan will reach the phase of making further decisions on expanding our oil industry,” said Eesti Energia’s CFO Margus Kaasik. The money is also planned for building a power plant at Auvere and invest into the distribution network.

Kaasik added that Eesti Energia would use the funds to enhance its financial results and hence be able to pay more dividends to the State budget. While currently Eesti Energia brings to the State gross dividends of approximately 80 million euros, this amount could after the investment grow to up to 200 million euros.

Riigikogu will start processing the State budget in coming weeks.