According to Reuters, CEZ gave an offer without engagement in Bulgarian tender to finance NPP Belene project with 2,000MW capacity. There are other four companies (Enel, , , and Electrabel) competing in the tender besides CEZ. The winner of the tender should be known by the end of this year and will gain 49% stake in BPC (Belene Power Company). In addition, CEZ is analyzing possible projects in Romania and Bulgaria to build steam/gas power plant and to enter into market in Turkey.
Our view:
The investment cost of NPP Belene should be 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.