"Continued government ownership is limiting the company's expansion. The sale of the governments' shares will allow the company to access private equity so it can further develop its business," the ministers said in a statement.

New South Wales holds 58 percent of Snowy Hydro, the Victorian government 29 percent and the national government 13 percent.

Snowy Hydro provides 74 percent of the renewable energy available in Australia's mainland national electricity market. It took 25 years to build, involved 100,000 workers, and is capable of providing 3,756 megawatts of electricity.

The company owns and operates the Snowy Mountains Scheme, widely considered Australia's greatest engineering project, which consists of seven power stations and 16 major dams, connected by 145 km (90 miles) of tunnels and 80 kms of aqueducts.

Snowy Hydro also owns the 300 megawatt Valley power gas-fired power station in Victoria, and is currently building another 320 megawatt gas-fired power station in the state.

In the year to June 30, 2005, the company reported earnings before interest, tax, depreciation and amortisation of A$273 million and a net profit of A$148 million.

(US$1=A$1.37)