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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of April 2006
Commission File Number 333-7182-01
CEZ, a. s.
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(Translation of registrant's name into English)
c/o Duhova 2/1444
140 53 Prague 4
Czech Republic
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):____
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- ________
The following information was filed by CEZ, a. s. in Czech language with the
Prague Stock Exchange as required by its rules and regulations:
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THE RECONSTRUCTION OF CEZ'S COAL-FIRED POWER PLANTS IS UNDER WAY, A CONTRACT
WITH THE GENERAL CONTRACTOR WAS SIGNED TODAY
The first to undergo a radical modernization will be the coal-fired power plant
at Tusimice II. CEZ concluded an agreement with the general contractor, SKODA
PRAHA Invest, for a "Comprehensive reconstruction of Tusimice II. power plant".
The investment into the complete reconstruction of the Tusimice II. power plant
is to reach nearly CZK 20 billion.
"The last coal-fired power plant was built in the Czech Republic in Prunerov in
1981; since then, no major contract took place. The Tusimice plant is the first
one from CEZ's portfolio of coal-fired plants to undergo a complete
reconstruction. The power plant at Prunerov II will follow next. Completely new
blocks are to be built in Ledvice and Pocerady, where we further plan a complete
reconstruction of the existing three blocks," Martin Roman, the Chairman of the
Board of Directors and General Manager of CEZ stated.
SKODA PRAHA Invest who is to be the general contractor to carry out the complete
reconstruction of Tusimice II was establish specifically to ensure that the
reconstruction of CEZ's facilities follows a uniform concept and that there is a
continuity to the implementation of the reconstruction process. It will serve to
guarantee that the reconstruction is conducted as expediently as possible and on
the best possible substantive terms, and that it will be possible to draw on
experience gained in individual phases of the project. The experience gained
during the comprehensive reconstruction of the Tusimice II plant will be used in
other stages of the reconstruction. This way, it will be possible to avoid
repeating the situation of the 1990's, where the desulphurization of individual
power plants was not coordinated, individual contractors frequently failed to
avoid making the same mistakes, and the process therefore was not the most
economical one.
"Moreover, this approach will make it possible to shorten the time from the
moment the need to implement the reconstruction project emerges and the moment
reconstruction is actually commenced. Czech companies will participate in the
contracts to a significant extent, and the Czech economy will therefore
substantially benefit from the project. Contractors supplying complete units
will moreover tend to use local, regional companies, if only because of lower
transport costs, and that will help revitalize the regions and the improve
employment rate," Daniel Benes, member of the Board of Directors and director of
the Administration Division of CEZ noted in this context.
At Tusimice, the project will involve a comprehensive reconstruction that will
replace the entire current capacity of 4x200 MW with a new technology with a
life-span of 25 years. A coal deposit corresponding to the said period of time
is available, pursuant to the current zoning limits for mining. However, the
coal available there for future use is of a significantly worse quality than the
current coal. The technology to be used has to accommodate such fact and be able
to handle future fuel with a lower calorific value and a higher sulphur content.
The new power plant will be fitted with modern boilers, and its net efficiency
will thus increase by 16% as compared to the current plant whose efficiency is
33%. These and other measures will significantly improve the environmental
parameters of the new plant. "Compared to the current status which is in perfect
compliance will all the stringent European standards, the "new" Tusimice will
bring a further reduction of all emissions. The new desulphurization technology
will make it possible to direct all combustion products into cooling towers, and
no chimney will thus be required," stated Jiri Borovec, Deputy Chairman of the
Board of Directors and director of the Production Division. As compared to the
current
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situation, the new technology will bring about a reduction of emissions of CO2
by 15 %, SO2 by 70%, NOx by 65% and fly ash by 40%.
According to CEZ's plans, the actual construction related to the comprehensive
reconstruction of the first two blocks of the power plant is to commence in the
second half of 2007, the other two blocks in mid-2009. Operation is expected to
resume in early 2009, or in late 2010, as the case may be. Construction works
and installation of new technologies for two 200 MW blocks will in each case
take around 18 months. Before such work can be commenced, the project
documentation being prepared by SKODA PRAHA needs to be completed first; the
approval process is also under way.
It is expected that at the height of the project, a maximum of 1,500 staff
members of the contractors will be working on the construction site.
The reconstruction of the generation facilities will be conducted in 2007-2020,
and stems from an assessment of the condition of the existing generation base,
including the managed last phase of its life span, and the business
opportunities during this period. Most of CEZ's current power plants dates back
to the late 1960's and early 1970's. A desulphurization and modernization took
place 10 years ago, extending their life span by 10-15 years. That means that
most of them will stop operating between 2010 and 2015. The reconstruction of a
particular power plant depends first and foremost on a sufficient supply of coal
throughout its life span. "If a completely new plant starts operating, we need
to have coal for a further 40 years from the start-up of operation, and where a
plant is substantially reconstructed and new technologies installed, we look to
a further 25 years of operation", Jiri Borovec explained. "However, given the
limited sources of coal, coal-fired facilities cannot be reconstructed to the
current extent", Borovec added.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CEZ, a. s.
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Date: April 28, 2006 (Registrant)
By: /s/ Libuse Latalova
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Libuse Latalova
Head of Finance Administration
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