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MESSAGE (ENGLISH VERSION) | |
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CEZ has today signed implementation agreement under largest-ever foreign
investment of Czech firm
Within the scope of the establishment of a joint venture for a project
to construct a new power plant Gacko II, modernize the present power
plant Gacko I and expand mining in an adjacent mine, which will supply
both plants with its production, CEZ Power Company and the Serbian power
company ERS have today signed an implementation agreement in Gacko.
The implementation agreement was signed by Martin Roman, Chairman of the
Board of Directors and CEO of CEZ, Vladimir Schmalz, director of the
mergers and acquisitions section of CEZ, Pantelija Dakic, CEO of ERS,
and Vlastimir Savicic, director of Gacko power plant in the presence of
Milorad Dodik, Prime Minister of the Republic of Serbia (Bosnia and
Herzegovina). At the same time a symbolic foundation stone of the new
power plant Gacko II was tapped.
„The planned investment into the construction of the plant in Bosnia and
Herzegovina is another step towards the fulfilment of our vision of
becoming the leader in the elekctricity market in Central and Eastern
Europe. The final sum will also represent the highest-ever foreign
investment of a Czech firm, as well as it is the largest direct foreign
investment that has flown into the Republic of Serbia in Bosnia and
Herzegovina up to now,“ said Martin Roman, Chairman of the Board of
Directors and CEO of CEZ.
Under the implementation agreement, the investment of the present power
plant Gacko I and the coal-mine into NERS joint venture is governed as a
contribution on the part of ERS (assessment will be carried out on
December 31, 2007) and,further, an increase in the fixed capital to EUR
400m as a contribution on the part of CEZ. The investment into the Gacko
project will reach ca EUR 1.4bn and it will be financed by project
funding. Its final structure will be known at the turn of this and next
year.
Investments into a new modern power plant with a planned capacity of 600
– 700 MW in the same locality and into expansion of the adjacent
coal-mine will be made by the medium of NERS, where CEZ has a 51 %
share. The future investment should amount to EUR 1.4bn (roughly 38bn
CZK). It is the largest foreign investment in Bosnia and Herzegovina,
which should bring development of the entire region.
Whithin its foreign expansion, CEZ Power Company has already succeeded
in Bulgary, by acquisition of three distribution companies and Varna
power plant, in Romania, by acquisition of the majority stake in the
distribution company Electrica Oltenia. Last year CEZ Group´s production
portfolio was enlarged by two Polish power companies Elcho and Skawina.
Attachement:
GACKO PROJECT
Construction of New Unit Gacko II – 600 – 700 MW
A building design of a supercritical condensing generating unit has been
chosen as the basic one. A Feasibility Study is now also considering a
few other construction scenarios of the new resource in terms of its
capacity, basic parameters and used boiler technologies. When analysing
these scenarios, it is necessary to take into account the volume and
quality of coal in the new coal-mine, conditions of foundation
engineering, but also the fact that the territory lies in a seismic
area.
The new power plant will be built using the most modern technologies and
will be designed to meet ecological limits set under the European Union.
A modern, top technology solution, represented by a high-performance
(46.6 %) and reliable generating unit, will be used. It is assumed that
the project will use the same technologies as CEZ uses for its newly
planned units in the Czech Republic and consequently synergies in the
areas of project solutions, supply or longstanding maintenance.
The project itself and related studies are now already being worked up
by a common team. The product will be a concrete structural design of
the new unit and acquisition of all permits necessary for the
commencement of building. The commencement of building is assumed to
take place in 2009.
Reconstruction of Gacko I power plant – 300 MW
CEZ in co-operation with skilled employees of Gacko I and supplying
organizations are now analyzing the present technical conditions of the
plant. As a result, options for the future development of the present
plant will be drawn up. Proposed options for the development will be
appropriately adjusted according to the analysis of thermal cycle.
Outcome will be a plan for reconstruction of the present plant which
will enhance efficiency and reliability of the resource and enable the
plant to operate until the end of its planned life span, that is roughly
until 2025. Due to the reconstruction, the plant will also be able to
meet ecological limits.
It is under consideration to reconstruct the present thermal power plant
after the new plant is put into operation in 2014. That will mean
meeting all emission limits valid in the Republic of Serbia, and further
it will enhance efficiency of the present plant by at least 3 % up on
the present level in order to meet the „BAT“ criteria for existing
soft-coal-fired power plants set by the European Commission.
In case the analysis of the present technical conditions of the plant
shows that only partial reconstruction of the present resource to ensure
its operation until 2025 is not possible, an option of complex retrofit
of the plant after the launch of the new resource will be considered.
Coal-mine Expansion
The coal-field near Gacko is a part of a field in the north-eastern
Bosnia and Herzegovina. The present opencast mine is situated on the
south-east edge of Gacko, in the immediate vicinity of the power plant.
The „A“ deposit, which is depleted today, was opened as the first along
with the original construction of Gacko I. Following its depletion, the
„B“ deposit was opened. At the current consumption of roughly 2 million
tonnes per year, the present coal reserves at the „B“ deposit will be
depleted during the years 2009 to 2010. That is the reason why it is
needed to open a new deposit, „C“, which will supply the present as well
as the new power plant. Mechanization equipment from „A“ and „B“
deposits will be gradually moved to the „C“ deposit after mining in the
„B“ deposit is discontinued and the equipment is modernized and
overhauled. An increase in coal-mining capacity in the new deposit
accompanied by investments into new technology will help to utilize
significant economies of scale and reduce cost per tonne. Coal-mining
must be preceeded by strip mining, when overburden is removed. It is
supposed to start at the „C“ deposit already in 2009. In connection with
opening of the new mine, a by-pass of the rivers Gracanica and Musnica
will be solved.
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