CEZ sells two Polish wind projects to KGAL fund

Prague, Aug 11 (CTK) - Czech power utility CEZ has sold two Polish wind farm projects, Krasin and Sakowko, to investment fund KGAL and expects to sell its remaining wind projects in Poland by the end of the year, CFO Martin Novak said in an interview with CTK today without disclosing the price.

"Originally, we wanted to build a portfolio of wind power plants in Poland, but after a change of legislation we were unable to carry out most of the projects," Novak said, adding that CEZ would not develop renewable sources in Poland any more.

CEZ would like to start the sale of the main part of its Polish assets, including coal-fired power plants Skawina and Chorzow and other assets with the exception of companies engaged in energy services (ESCO), in the second half of the year, Novak said.

As regards Skawina nad Chorzow, their advantage lies in that they are also heating plants, Novak said.

The sale of Polish assets is in line with CEZ's new strategy, approved in June last year, he added.

The strategy also envisages a gradual sale of assets in Bulgaria, Romania and Turkey.

CEZ nevertheless plans to continue developing ESCO companies both at home and abroad.

Last week, CEZ said it was holding exclusive talks about the sale of its Romanian assets with a bidder that had submitted the best offer.

According to Romanian newspaper Ziarul Financiar, the potential buyer is Macquarie Infrastructure and Real Assets (MIRA), the owner of GasNet, the main gas distributor in Czechia.

Novak did not, however, confirm this information today. He only said he expected the contract to be signed by the end of this year or at the beginning of 2021.

The situation in Bulgaria is more complicated, as CEZ and Bulgarian firm Eurohold last year filed administrative lawsuits against the decision of the Bulgarian antitrust office which had blocked the sale of CEZ's local assets to Eurohold in October.

The administrative court cancelled the antitrust office's decision in July and the office had 14 days to file an appeal.

"We do not know whether they have appealed the decision or not. If they have not, the office has to deal with the case again and make a new decision. We hope it will be in our favour this time," Novak said.

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