CEZ Shperndarje

completed

CEZ Shpërndarje is the power distribution company of Albania. The Company operates under the power distribution system operator and retail public supplier licenses, serving around 1.1 million customers. The project is to provide long-term financing to the Company to support its 2009-2013 investment program, which is aimed at reducing distribution losses, enhancing operational efficiency, improving reliability of electricity supply and connecting new customers (“the Project”). CEZ Shpërndarje is 76 per cent owned by the Czech energy group, CEZ a.s. (“CEZ” or the “Sponsor”) which acquired this controlling stake in the Company through the privatization which was successfully concluded in May 2009. The Company owns, operates and maintains Albania’s electricity distribution system in medium and low voltage lines (from 35 kV to 0.4 kV) including substations (110 kV/35kV) and 35 kV step down substation transformers. In 2009, the Company purchased 6,500 GWh from the grid and sold 4,260 GWh of electricity with the distribution loss of 34%. This loss rate is expected to be improved to 21% in 2014. The Company has about 5,000 employees. The Company’s 2009-2013 investment program, starting from CEZ’s acquisition of the Company, is expected to cost around €154 million and will consist of the following measures: (i) modernization of the distribution network, including refurbishment of substations, (ii) installation of new meters, (iii) connection of new customers, and (iv) implementation of a new billing system.