THE UKRAINE government has announced its new set of privatisation conditions to enable the sale of the Odessa Port Plant (OPZ) to proceed. The government has scheduled an open auction of its 99.52% stake on 29 April. The reserve price fixed is $594m. In addition to making good on his bid, the winner of the auction must accept the following investment obligations: $256m in capital expenditure during 2008-2013, with $58m to be spent in the first year of acquisition; revenue to be generated of at least $460m in 2008, increasing at a rate of 5.2% until 2013; preserving the current payroll numbers for a decade; increasing the average salary of employees to the level of similar plants in the European Union over the next three years; preventing salary arrears; and maintaining the product mix and production volume of ammonia and urea. The only qualification criterion for a potential buyer is that it should present evidence of profitable economic activity for not less than the last three years.
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