Energy Center Kladno Generating s.r.o. (ECKG)

completed

REVISED Summary Of Project Information (SPI)Project NameCzech Republic-Energy Center Kladno Project (Risk Management)     RegionEuropeSectorProject No005028Projected Board DateApril 3, 1997Company NameEnergy Kladno ProjectTechnical Partner and/or Major Shareholders NRGenerating International BV(“NRG”): independent power subsidiary of Northern States Power, Minneapolis, Minnisota (USA); ACT/Independent Power, the Prague-based developer of the project; Nations Energy, based in Winter Park, Florida (USA), an independent power subsidiary of Tuscon Electric Power Co. and Stredoceske Energeticke Zavody s.p. (“STE”): the Central Bohemian grid and main power purchaser.Project Cost Including proposed IFC investment IFC’s maximum exposure to ECKG currently amounts to about US$60 million equivalent in Deutsche Marks. IFC’s additional risk exposure under the proposed RMF has been estimated at US$10 million, based on the loan-equivalent methodology for exposure calculation. It should be noted that this exposure measurement is simply an estimate; it does not represent the future market value of the transactions which will be monitored over time. After this RMF is implemented, IFC’s exposure to ECKG would amount to US$70 million as described below.Location of project and Description of site The project is located at Kladno, 30 Kilometers west of Prague. It will be constructed on the site of the Main Heating Plant in ECK, one of the three heating plants of the former Poldi Steel works in Kladno.Description of Company and Purpose of Project The project consists of establishing a Risk Management Facility for the ECKG Project (the Company) which would allow the Company to undertake, during a three-year execution period, risk management transactions with a maximum maturity of 15 years. This RMF would provide ECKG the flexibility to utilize a wide variety of risk management instruments, such as interest rate swaps or options. IFC would act as an intermediary between the international financial markets and ECKG, bearing the risk of ECKG.Environmental Category and Issues The proposed project is of a financial nature only, and accordingly is classified as a Category C Project according to IFC’s environmental review procedures. The original project for which IFC financing was provided was classified as a Category B project and is being designed to meet World Bank policies and environmental, health and safety guidelines and local governmental requirements.     Date SPI sent to PICRevised May 28, 1996March 3, 1997For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).