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Energa and Enea announced a tender for selecting a general contractor for Ostrołęka C Power Plant

ENERGA SA and Enea SA announced a tender procedure for the construction of ca. 1,000 MWe Ostrołęka C Power Plant. The investment implementation will have a positive effect on the Polish energy security and is in line with the process of modernising the Polish power sector using Polish coal as fuel. Companies interested in a turnkey realisation of the Power Plant with one power unit of the capacity of at least 45 per cent have time to file applications to be admitted to the procedure until 20 February 2017.

The subject of the procurement is construction of the turnkey condensing power unit with the electrical capacity of ca. 1,000 MWe and 45 per cent net efficiency, operating on steam supercritical parameters. The investment will be based on modern technologies and will satisfy the highest environmental standards. The contractor will be obliged e.g. to design, obtain necessary decisions on the building permit, prepare the site, execute construction works and obtain the decision on the occupancy permit before the final commissioning. Companies interested in the realisation of the investment have time to submit motions for being admitted to participate in the tender until 20th February 2017. The preliminary period of their consideration is three months. The companies selected in the procedure will have three months to submit preliminary offers which will then be evaluated as a result of a competitive dialogue. Its procedure was adopted to the said tender procedure.

– Several months ago we accepted a condition to resume the construction of a new unit in Ostrołęka. Today, two partners – Energa and Enea – undertake an investment effort with the decision on commencing one of the largest investments in Europe this year. We are modernising power plants and new efficient units are our priority. The tender announcement published today is for contractors in Europe. I am deeply satisfied that Poland will be able to develop based on energy from modern coal sources, such as the new unit in Ostrołęka – says Krzysztof Tchórzewski, the Minister of Energy.

The investment will be implemented jointly by Energa and Enea Groups, based on the investment contract concluded on 8 December 2016. Both companies estimate that the construction could start already in 2018 and end in 2023, and Ostrołęka C Power Plant’s commercial operation are expected in 2024.

  Today, we are commencing the procedure for selecting the contractor for the most modern conventional unit in Poland which is to operate systemically and minimally affect the environment. We defrosted the project in May this year and have performed numerous analyses and found partners. We made an agreement with PGG which will supply coal together with Enea which will be our partner by the construction. We do not rule out the engagement of a financial investor at next stages, and at the same time, we have already found a possibility to develop this investment so that it builds the value of our Group. Today we are inviting contractors to take part in the tender procedure and, according to our calculations, the construction could start in 2018. The most intensive part of the works is still ahead of us - says Dariusz Kaśków, president of Energa SA.

– The joint construction of a highly-efficient, low-emission Ostrołęka C unit is in line with Enea’s Development Strategy – emphasised the president of Enea, Mirosław Kowalik. – We are working on increasing electricity sales to end Customers, which will relate to the extension of our own, conventional generation capacity. Together with the other generating units held in the Group’s portfolio, Ostrołęka C will allow for the optimisation of asset management and will increase the share in the generation market. As a consequence, it will strengthen Enea’s market position - added president Kowalik.

According to the investment contract concluded, the companies divided the planned cooperation into three stages. They will include respectively:

  • Development Stage, which will last until the instruction is given to commence works to the general constructor;
  • Construction Stage, which will cover the period until commissioning Ostrołęka C for commercial operation;
  • Exploitation stage, during which Ostrołęka C will be commercially operated.

The conditions precedent for the contract’s entry into force is obtaining the consent of the President of the Office for Competition and Consumer Protection to perform the concentration being acquisition by Enea of shares in the special purpose vehicle (i.e. Elektrownia Ostrołęka SA) to implement the Project. The related request was already lodged in the Office.

The key assumption in the construction of the power unit in Ostrołęka is implementation of a profitable investment which will guarantee a satisfactory rate of return to shareholders. The Project foresees openness to the engagement of financial investors and investment funds.

Having in mind the diverse and international nature of Enea SA's shareholding, and also the provisions of the Best Practices of WSE Listed Companies, Enea SA guarantees the availability of its website also in English. In case of any interpretation doubts and discrepancies between the Polish and English versions, the Polish version shall prevail.