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Credit for the modernisation of the Pątnów I Power Plant
Credit for the modernisation of the Pątnów I Power Plant
Warsaw, 13 March 2014
The modernisation of the Pątnów I Power Plant units is the next project financed by Program Polskie Inwestycje [Polish Investments Program]
The investment plans of Zespół Elektrowni Pątnów Adamów Konin S.A. include the modernisation of a total of four units in the Pątnów I Power Plant, which will help to ensure their safe operation until 2030 in accordance with the current environmental protection requirements.
The credit for a total amount of PLN 1.2 billion was granted by the consortium of five banks: Bank Gospodarstwa Krajowego (share of PLN 400,000,000), Bank Millennium SA (PLN 200,000,000), mBank S.A. (PLN 200,000,000) acting as the Credit and Securities’ Agent, PEKAO SA (PLN 200,000,000) as well as PKO Bank Polski SA (PLN 200,000,000). Part A of the Credit in the amount of PLN 1.11 billion will finance the investments, whereas part B will be allocated to refinance the entire repayment of debt related to the credit agreement for the desulphurisation system of units in the Pątnów I Power Plant. The financing will end on 20 December 2023.
The modernisation of the Pątnów I Power Plant is a component of ZE PAK S.A.’s strategy comprising in the optimisation of the generating power portfolio via modernisation of life-expired units, as well as replacement of some of them with units based on new, low-emission technologies. The execution of this strategy was possible after the ZE PAK S.A.’s acquisition of basic fuel resources, i.e. after ZE PAK S.A.’s purchase of brown coal mines in 2012.
- The renovation of the Pątnów I Power Plant was commenced in 2006 and its first stage included the construction of the flue-gas desulphurisation system. Currently the Pątnów I Power Plant features the final stage of modernisation, which encompasses four power units with 200 MW capacities each. Its primary result will include the increase in the installed capacity by approx. 80 MW, improvement in the effectiveness of the units from 33.5% to 37.5% as well as elongation of their service life by 50÷70 thousand hours. After the completion of the investment, the decrease in the emissions of gas into the environment (SO2, CO2, NOx) will allow to fulfil all domestic and EU requirements in this scope – said Anna Striżyk, ZE PAK S.A.’s Vice-President of the Board.
The financing of Zespół Elektrowni Pątnów - Adamów - Konin S.A. is executed in the scope of Program Inwestycje Polskie administered by Bank Gospodarstwa Krajowego [BGK – National Economy Bank]. The aim of the program is to support infrastructural investments which are deemed as important for the country. In the scope of the program, BGK, acting within consortiums with commercial banks or individually, provides financing for investors in the form of credits, bonds or guarantees.
- For over a year, BGK has successfully executed the Program Inwestycje Polskie by financing projects which are important for the economy – said Dariusz Kacprzyk, BGK’s President of the Board. Today’s transaction is another transaction in the power sector, after the financing for PGE, Tauron Polska Energia and SEJ, which strengthens the role of BGK as a developmental bank. In the last 9 months we have granted a total financing of PLN 5 billion to medium and large companies, thus helping to upkeep the investment dynamics in the economy – added President Kacprzyk.
The ZE PAK S.A. Group, in which Zespół Elektrowni Pątnów-Adamów-Konin S.A. is the parent company, conducts activities encompassing the mining of brown coal as well as production and sale of electric power and heat. The Group’s generating assets include four brown coal-fired power plants (Pątnów II, Pątnów I, Adamów and Konin) as well as a biomass unit. In terms of generated electric power capacity, the Group is the fifth biggest producer in Poland with a share of approx. 7.1% in the domestic market of electric power generation as well as the second biggest producer of electric power using its own brown coal resources. The heat produced by the Konin and Adamów power plants covers almost all the heating demand of Konin and Turek cities. Since 30 October 2012, ZE PAK S.A. has been a company listed in the Warsaw Stock Exchange. For several years now, the Company has executed the technical reconstruction program, the aim of which is to maintain PAK’s good position among the domestic producers of electric power. The total generating capacity in the ZE PAK S.A. Capital Group’s power plants is currently equal to 2462 MW.
BGK is the only state-owned bank in Poland. The bank was established in 1924 by Władysław Grabski, the then Prime Minister and Minister of Treasury. BGK’s goal is to support social and economic development of Poland as well as the public finance sector in the execution of its tasks. Currently, BGK executes and initiates many programs which are advantageous for the economic development of Poland. It is the pillar of Program Inwestycje Polskie, the scope of which includes long-term financing of investment projects, including investments with strategic significance for the national economy and the country’s interests. It manages export supporting and infrastructural programs, develops the surety and guarantee system. It participates in the financing of local government units, community partnerships and health care centres, as well as in the execution of programs related to the improvement of the housing market situation and access of Polish citizens to houses. BGK is the leading institution in the process of consolidation of public finances as well as in the European fund flow system.