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LOWER HOUSE ENDORSES PROPOSAL FOR REFORM OF POWER INDUSTRY

ZAGREB, July 14 (Hina) - The Croatian national parliament's House of Representatives on Friday supported a draft reform in the power sector, proposed by the Government which intends to re-organise two leading companies - INA and HEP - and pave the path for privatisation in the power supplies system. During a debate, most MPs insisted that privatisation should be conducted in a socially appropriate manner so that as many as possible existing jobs be maintained after that process. Although no deputy voted against the draft reform, the bench of the strongest opposition party, HDZ (Croatian Democratic Union), voiced opposition to the privatisation of the firms and particularly of petrol stations. An assistant to Economy Minister, Roman Nota, expounded the Government's motion. According to him, the proposed reform is not a strategy for development in the power sector, but only an attempt to create prerequisites fo
ZAGREB, July 14 (Hina) - The Croatian national parliament's House of Representatives on Friday supported a draft reform in the power sector, proposed by the Government which intends to re-organise two leading companies - INA and HEP - and pave the path for privatisation in the power supplies system. During a debate, most MPs insisted that privatisation should be conducted in a socially appropriate manner so that as many as possible existing jobs be maintained after that process. Although no deputy voted against the draft reform, the bench of the strongest opposition party, HDZ (Croatian Democratic Union), voiced opposition to the privatisation of the firms and particularly of petrol stations. An assistant to Economy Minister, Roman Nota, expounded the Government's motion. According to him, the proposed reform is not a strategy for development in the power sector, but only an attempt to create prerequisites for a power supplies market reform in accordance to the European Union standards He said the reform would cover the INA, the Croatian oil company, and the HEP, Croatian power company, and give a framework for the restructuring and privatisation of the power sector, worth 3-4 billion US dollars. The reform should be conducted in the coming two years. By the end of this year the HEP should be reorganised into the HEP Group with three companies - for power production, transmission and distribution of power supplies -, whereas the INA would be transformed into the INA Group with two firms for oil and gas. The Government is to retain control over JANAF - a system of oil transport. (hina) ms

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