Czech J&T Finance Group To Start Building 600 Mln Euro Power Plant in Moldova in H2’09

"We plan to start construction works in the second half of next year and launch operations at full installed capacity in 2012," the head of the J&T Finance group subsidiary United Energy Moldova Daniel Kretinsky told a news conference.

J&T Finance Group and the Moldovan government signed on Monday an agreement to build the 350 megawatt coal-fried power plant in the western town of Ungheni, at the border with Romania. The new plant will be able to supply 735 gigawatthours (GWh) to Moldova yearly, which will cover 20% of the country’s electricity demand. The remainder will be exported to neighbouring Romania.

"This is the largest ever investment project implemented in Moldova. It will help us to improve the energy security of the country and to create new jobs," Moldovan Economy Minister Igor Dodon told the same news conference.

Kretinsky said that Moldova’s geographical position will allow the company to supply coal to the plant from Ukraine, Russia or from other countries via Romanian Black Sea ports.

"This will allow us to cut transport costs. Besides, the opportunity to supply coal from many countries is a strategic advantage, which makes us independent...," Kretinsky said.

Three gas-fired state-owned power plants are active now in Moldova, covering just a third of its electricity needs. The rest is imported from Ukraine. Moldova's electricity consumption rose by an annual 3.7% to 1,600 GWh in the first half of 2008.

The country currently pays 5.0 U.S. cents per kWh for the electricity it imports from Ukraine. Moldovan power plants sells their electricity at around 11 U.S. cents per kWh.

"Moldova has a right, but not an obligation, to buy electricity from our plant if the price will be profitable for the country," Kretinsky said, adding that the price will depend on the plant's costs.

The J&T Finance Group is one of the most active investor groups in the Czech Republic and Slovakia. It focuses on four basic areas: corporate investments, private banking, real estate development and services.

($=0.7141 euro)