CEZ will invest CZK 26bn into a new block in Ledvice. The construction should commence in 2007 and the power plant should be ready by 2012. Moreover, CZK 20bn of investments into complete reconstruction of coal-plant Tusimice 2 by 2010. These investments are part of CEZ’s plan to renew its aging power plants and estimated related CAPEX is some CZK 150bn over next 15 years. The company plans to finalize the structure of its future capacity within the next few months. According to the CEO, Martin Roman, CEZ will build at least one gas power plant. Note that CEZ's current capacities are coal, nuclear and renewabls. The news is neutral for CEZ and we reiterate our Buy recommendation.