Georgia to auction two thermal power plants

TBILISI, Nov 9 (Reuters) - Georgia on Monday announced an auction for the sale of two thermal power plants totalling 270 megawatts in capacity, with a starting price of $190 million.

The auction will be held on Dec. 7.

The terms require the new owner of 100 percent of shares to maintain the plants in working condition at current capacity until 2025.

"From the sum we get from the auction, $183 million will be allocated to pay off state budget debts and the rest of the sum will be distributed among 40 creditors of the plants," Tbilgress power plant bankruptcy manager David Chachkhiani told Reuters.

The power plants are located 40 km (24.8 miles) southeast of the Georgian capital, Tbilisi.

The former Soviet republic has privatised almost all generating plants in recent years. The country has become an energy exporter to the region, in a turnaround from the dark days of the 1990s when Georgia faced severe energy shortages.

Russian state-controlled power trader Inter RAO (IRAO.MM) owns one power plant in Tbilgress with a capacity of 300 megawatts. (Reporting by Niko Mchedlishvili; Editing by Hans Peters)