According to HN daily, CEZ together with its US partner AES has been short-listed as one of four bidders for modernization project of Kosovo’s energy sector. Other short-listed bidders include RWE Power, EnBW with its US partner WGI and Enel together with Sencap. The main project includes construction of power plant with 2,000 MW of installed capacity.
Our view:
This project is in line with CEZ’s strategy to become power leader in CEE&SEE region and confirms the fact that Kosovo’s energy infrastructure is ailing and needs modernization. This gives upside potential for the winner of the tender topped with the fact that Kosovo has significant coal reserves of high quality lignite (some 12bn metric tons). Until the result of the tender is known, expected towards the end of 1Q07, we would rate this news as neutral.