The planned asset sale of New South Wales of its electric power assets will easily fetch some A$8 billion in investments for the state, the Citigroup Inc. said in a report.

Bloomberg News said quoting a report of Citigroup said the sale of NSW's electricity assets to AGL Energy Ltd. and Origin Energy Ltd. would be more advantageous to the government's finances as it reduces its debt levels.

"Aside from spurring competition in the electricity market, NSW can also strengthen the state's financial standing," Sydney-based analyst Marie Miyashiro estimated in a report released on Tuesday.

Citigroup has estimated that trading rights for electricity produced by state-owned firms was estimated to be as much A$4.9 billion, while the retail electricity generation business is worth at least A$3.1 billion.

Bloomberg News said the NSW state on Nov. 15 begun evaluating bids for the assets, including retailers EnergyAustralia, Country Energy and Integral Energy. New South Wales is also offering development sites for new plants as well as the electricity trading rights. The government didn't identify any of the bidders.

NSW's state government sale of electricity assets, which began about 12 years ago, may be completed in early 2011, state Auditor-General Peter Achterstraat said in a report earlier this month.

Earlier reports said New South Wales state said the asset sale and encouraging "private sector investment" in the industry would allow it to focus its "scarce financial resources" on providing transportation, health and education services.

ACCC decision

Citigroup said the Australian Competition and Consumer Commission decision on Nov. 25. is crucial to the privatisation of state-owned assets of NSW.

Citigroup said: "If the ACCC acts as a 'showstopper,' we do not see any prospect of New South Wales being able to privatize its energy assets, perhaps not the outcome that the ACCC would like to see in the interests of consumers if NSW's energy supply effectively remains a government-owned monopoly."