According to Reuters, CEZ proceeded to another round in Bulgarian tender to finance NPP Belene project with 2,000MW capacity. There are other five companies (Enel, E.ON, RWE, EdF, and Electrabel) competing in the tender besides CEZ. Each company has to propose its offer by October 11. The winner of the tender should be known by the end of this year and will gain 49% stake in BPC (Belene Power Company).
We see it positive that CEZ proceeded to another round but it is too soon to predict whether CEZ will win the tender. We estimate the investment cost of NPP Belene around EUR 5.0bn. Based on fact that CEZ already owns TPP in Varna and 3 distribution companies there, it make sense for CEZ to further penetrate into Bulgarian market. We see this news as trading neutral for today