ČEZ expects more bids for power plants in Sept, Oct

Prague, Sept 3 (CTK) - The energy group CEZ is expecting bids for the purchase of its five coal-fired power plants in the course of this month and early in October, spokeswoman Barbora Pulpanova told CTK yesterday.

Besides Chvaletice and Pocerady, CEZ has also put up for sale the Detmarovice, Tisova and Melnik III facilities.

Czech Coal and energy group Energeticky a prumyslovy holding (EPH) submitted binding bids for Chvaletice and Pocerady last Friday. They did not disclose the prices they offered for the power plants. According to analysts, the two plants' price may reach some Kc30bn.

For now CEZ refuses to give any details about the selection of the potential buyer.

"In view of the fact that we are expecting further bids during September and at the beginning of October, we will not make public any concrete details," said Pulpanova.

The price will not be set based on the installed capacity of the facilities only, she said. The final price will take into account a "number of other parameters," she added.

The sale of CEZ's coal-fired plants is seen as one of the biggest transactions on the Czech market over the past few years.

Czech Coal might use its coal in the acquired power plants, which would make it a major power producer.

Should EPH win the tender, it would strengthen its number two position in the energy market.

The weekly Tyden wrote that many firms are also bidding for Detmarovice, among them EPH, Czech-Slovak investment group Penta, mining company New World Resources, heating group Dalkia and US banking giant Morgan Stanley.

Sokolovska uhelna has shown interest in Tisova, the press has reported.

CEZ has decided to sell some of its coal-fired plants because it wants to operate a limited number of upgraded coal facilities in the future.

Through the sale it also wants to settle the European Commission's inquiry over suspicion of restrictions on competition. Based on agreement with the Commission, CEZ has to sell at least one power plant with a minimum output of 800 megawatts.