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ZE PAK GROUP has obtained financing for the construction of a CCGT unit (CCGT)
ZE PAK Group has successfully finalized negotiations with banks, securing financing for the construction of a 562 MW combined cycle gas turbine unit under construction in Turek. Obtaining nearly PLN 2.3 billion in financing is a significant achievement and confirms the financial markets' appreciation for the implementation of the ZE PAK Group's strategic plans.
The long-term loan agreement signed with a consortium of banks is worth PLN 2.15 billion. Interest from financial institutions significantly exceeded the projected amount by PLN 1 billion.
This strong interest from banks demonstrates the financial markets' confidence in the ZE PAK Group and its prospects, and contributes to the stabilization of future operations. It also confirms that the combined cycle gas turbine unit project is a highly promising investment. This type of large-scale project, implemented using the project finance formula by a private investor, is unprecedented in the industry.
"I am pleased that banks have shown such great interest in our offer, demonstrating our credibility and strong position in the financial markets. It is very important for our Group that the most important institutions operating in the Polish financial market believe in our project and our prospects," said Andrzej Janiszowski, President of the Management Board of ZE PAK.
The project to build a combined cycle gas turbine (CCGT) unit in Turek is a strategic investment for the ZE PAK Group. It is a key element in shaping the Group's future in the post-coal era. The CCGT unit is a stable and controllable energy source that will significantly contribute to improving the balance of available power in Poland. This is a crucial project not only for the ZE PAK Group but also for the entire power system and Poland's energy security.
The financing documentation also provides for a revolving VAT loan of up to PLN 100 million and a revolving credit facility (RCF) of up to PLN 40 million, with the option to increase the amount or grant additional loans up to a total of PLN 500 million for the revolving credit facility. The consortium of financial institutions providing the financing consists of: Bank Gospodarstwa Krajowego, Bank Polska Kasa Opieki SA, Powszechna Kasa Oszczędności Bank Polski SA, Santander Bank Polska SA, UniCredit S.p.A., Alior Bank SA as lenders, and Bank Polska Kasa Opieki Spółka Akcyjna as agent and collateral agent. The agreement was signed by PAK CCGT Sp. z o.o., a company from ZE PAK Group.
About CCGT unit at ZE PAK:
The 562 MW CCGT ZE PAK unit is a modern power plant capable of generating nearly 5 TWh of energy annually.
Thanks to its gas fuel, the new power plant will have the lowest emissions among conventional energy sources, and its high availability will enable effective stabilization of the national power system. The high flexibility of the gas unit supports the maximization of electricity production from renewable sources, reducing the redispatch of renewable energy sources, which ultimately means the irreversible loss of renewable energy production. The project is being implemented on the site of the former, now demolished, coal-fired Adamów power plant.
In September 2023, an agreement with the general contractor was signed and launched. Construction work began in December 2023. The project is over 75% complete by the end of the third quarter of 2025, and the unit is expected to be commissioned in the third quarter of 2027.
The investment implemented in December 2021 won the capacity market auction, obtaining 17 years of support within the capacity market.