CEZ entered into settlement agreement with Albania: it will end the Dispute and it will recover almost CZK 3 bn

In Vienna CEZ signed a settlement agreement with Albanian counterparty under supervision of Energy Community Secretariat. According to the agreement CEZ, after fulfillment of conditions precedent, will get in annual installments EUR 100 m in total, i.e. the amount similar to initial investment into purchase of Albanian distribution company. Conditions for ending of arbitrage are part of the agreement.

“I consider the negotiated agreement as success because we will receive funds significantly earlier and we will not need to wait several years for results of the arbitration proceedings.  Agreement is designed so that the financial compensation will be guaranteed by renowned European bank” stated Daniel Beneš, Chairman of Board of Directors and Chief Executive Director of ČEZ, a. s.

According to the agreement, CEZ shall receive a compensation of EUR 95.5 million as payment of receivables and transfer of shares in CEZ Shperndarje. This is in addition to EUR 4.5 million already received by CEZ. The amount will be paid in annual installments until 2018. The effectiveness of the settlement agreement is conditional upon several conditions precedent, particularly the procurement of the bank guarantee, approval of the agreement by the Albanian government and parliament. On the part of CEZ, the agreement is subject to the approval of corporate bodies of ČEZ, a. s.

ČEZ entered Albanian market in 2009. Investment into purchase of the distribution company represents 3.6% of total investments abroad and less than 1% of total investments of CEZ Group in years 2005-2011.

Barbora Půlpánová, ČEZ’ Spokesperson

Published
24
June 2014