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.Ladislav KřížPress Officer, CEZ, a. s.
The map of Bosnia and Herzegovina –Gacko localization
The picture of the power plant
The overall information about the Gacko project