New Joint-Venture in the North of Moravia

Our power-generation company CEZ and Dalkia Co. (part of the supranational concern Vivendi) have established a joint-venture called JVCD, the objects of which include complex economic and environment-friendly optimization of heat and electricity generation in the north of Moravia. Dalkia has 51 % and CEZ 49 % in the registered capital of the new company, revenues will be divided in the ratio 60 % for CEZ and 40 % for Dalkia.

The new joint-venture will mainly focus on the reconstruction of Detmarovice power plant into an electricity and heat co-generation plant. The power plant intends to employ its current sources for higher supplies of heat, that is why the capital expenditure is directed especially to the construction of a hot-water line and interconnection between the power plant and the hot-water mains. Both parties plan to start building works in the first half of the next year, the full operation is planned as of 1 st September 2002. The capital expenditure on the construction of the hot-water line and modification of steam turbines in Detmarovice power plant should amount to CZK 1.4 billion (this capital expenditure is not related to the new power source, the construction of which in this locality had been considered).´

The aim of the project is a transformation into a co-generation source (combined generation of electricity and production of heat), stressing heat recuperation, and transfer of heat acquired in this way into the hot-water mains belonging to the heating plant Teplarny Karvina through the new hot-water line, long approx. 10 kilometers, and joint sales of power (both electricity and heat) produced by Teplarny Karvina and Detmarovice power plant. All those without investing any production capacities into the joint-venture.

Apparently, the joint-venture's sales should exceed in three years CZK 3.5 billion. At present, this is the largest French-Czech joint-venture.

The benefit brought about by this project is the improved atmosphere due to shutting down seven non-desulfurized boilers in Teplarny Karvina and higher efficiency of Detmarovice power plant from current 37 % up to approximately 46 %. The annual consumption of coal would increase from 1.05 million up to approximately 1.5 million tons. According to JVCD representatives, higher purchases of coal from the mining company OKD would maintain the employment level in the region.

Vivendi operates in 90 countries, specifically in the areas of communication, protection of the environment, building industry and real estate. Its 1998 net sales amounted to approximately US$ 35 billion, the concern employed 220,000 persons. Outside its parent country, France, the concern employs some ten thousand persons from twenty countries.

Dalkia focuses on the area of services in power and heat generation. It is the largest heat-generation company in the Czech Republic, it supplies heat in the region of Northern Moravia to the towns of Ostrava and Olomouc (heating plant Moravskosleszske Teplarny ), Karvina and Havirov (heating plant Teplarny Karvina ) and a couple of neighboring towns. In total, the company supplies heat to 560,000 inhabitants and operates sources with thermal capacity amounting to 2,700 MW. In addition to heating plants Moravskosleszske Teplarny and Teplarny Karvina, Dalkia Group also includes Ekoterm Czech Republic, Cogeterm Praha and MST Energomont.

Ladislav Kriz, press spokesman of CEZ

20. 1. 2000