If Barqi Tojik does not receive support from its shareholders, other companies linked to it as well as banks, it will not be able to continue its operations, says a report by the audit company Baker Tilly Klitou and Partners SRL, posted on Barqi Tojik’s website.
Baker Tilly Klitou and Partners SRL has conducted audit at Tajikistan’s national integrated power company.
The report, in particular, says that Barqi Tojik lost more than 2.8 billion somoni last year.
Auditors says they have received confirmation from the Barqi Tojik’s main shareholder (the company is wholly owned by the Government of Tajikistan) that it will continue providing financial support to the company
The report also notes that Barqi Tojik management has not introduced “proper procedures related to recognition of incomes, receivables and prepayments received for electric power.”
Meanwhile, Barqi Tojik now owes about 410 million somoni to the Sangtuda-2 hydroelectric power plant (HPP) and 672.2 million somoni to the Sangtuda-1 HPP.
A total volume of Barqi Tojik’s debts has reached nearly 12 billion somoni, including about 10 billion somoni Barqi Tojik owes to the Ministry of Finance for loans attracted for implementation of investment energy projects.
As of June 30, 2016, the company’s receivables reached little more than 1.5 billion somoni, including the population’s electricity debts in the amount of 621.7 million somoni, Tajik Aluminum Company (TALCO)’s electricity debts in the amount of 468 million somoni, pump stations’ electricity debts in the amount of 67 million somoni, and the farming units’ electricity debts in the amount of 97 million somoni.
Recall that a tender was announced among international consultants in 2011 for working out and implementing the program of the restructuring of the Barqi Tojik power holding.
The restructuring of the power holding was expected to be held in three stages: 1) commercialization -- 2011-2013; 2) competition -- 2014-2015; and 3) privatization -- 2016-2018. Necessary were supposed to be taken for creation of three independent companies: (i) generation; (ii) transmission business; and (iii) distribution.
Barqi Tojik is the state-owned utility responsible for generation, transmission, and distribution of electricity in Tajikistan. Prior to the country's independence, Barqi Tojik was a Government agency and it became a state joint stock holding company in 1992 wholly owned by the Government of Tajikistan.