July 25, 2008

CEZ confirms buying stake in Romanian nuclear plant

Thomson Financial reported that Central Europe's biggest power producer CEZ confirmed that it has agreed to take a 15% stake in a Romanian nuclear power plant investment and said it plans to increase output capacity in its Czech nuclear plants.

Mr Vladimir Schmalz head of acquisitions of CEZ told a news conference that “In Cernavoda we have negotiated a 15% stake and our participation is certain.”

As per report the planned joint venture with Romanian state energy group Societatea Nationala Nuclearelectrica is aimed at building a EUR 2.3 billion nuclear reactor project.

CEZ, controlled by the Czech state earlier said that it will expand nuclear power generation by 6 to 7 TWH to a total of 31 TWH by 2012 as it faces up to environmental issues with its coal fired plants.

Czech media have earlier reported that the stake in the Russian power generator is estimated to cost CZK 16 billion while the acquisition would require an additional investment of CZK 40 billion in TGK 4's 26 power plants, 600 municipal boilers and 5,000 kilometers of heating pipeline.

Mr Schmalz also said that CEZ has offered the Polish government assistance in any expansion of the country's nuclear capacities, but gave no further details. But he declined to say how much the it plans to spend on acquisitions this year.