Press releases pg. 19

The decision of arbitration panel about ČEZ’ claims in an arbitration initiated in 2009 on the grounds of breached contractual conditions in a project for the reconstruction of an old power plant and the construction of a new power plant of Gacko in Bosnia and Herzegovina was settled today. ČEZ received damages totalling approximately EUR 7.5 million in exchange for signing a share purchase agreement concerning joint holding company.

On the premises of the Secretariat of the Energy Community in Vienna, the Parties mutually confirmed that all conditions precedent had been fulfilled; thus, the Settlement Agreement took effect as made between companies of the CEZ Group and Albania in June of this year. According to the Agreement, ČEZ is going to receive a total of EUR 100 million, an amount similar to its initial investment in acquiring the Albanian power distribution company.

The arbitration panel upheld ČEZ’ claims in an arbitration initiated in 2009 on the grounds of breached contractual conditions in a project for the reconstruction of an old power plant and the construction of a new power plant of Gacko in Bosnia and Herzegovina. The project was then stopped still before the major capital expenditures were expended. ČEZ is to receive damages totalling approximately EUR 7,5 million.

Together with its partner, Akkök of Turkey, the CEZ Group has accepted from their contractor a newly built combined heat and power (CHP) plant of Egemer in southeast Turkey and started its live operation. Being a highly efficient source of heat and power with 57% efficiency and a service life of minimum 30 years, the plant should generate up to 7,000 GWh of electricity every year.