CEZ DISTRIBUTION NETWORK UPGRADE II

Promoter – Financial Intermediary

CEZ DISTRIBUCE AS

Location

• Czechia

Description

The programme comprises investments in the electricity distribution network in the Czech Republic over the period 2021-2022. It encompasses reinforcements and refurbishments in medium- and low-voltage networks.

Additionality and Impact

The program comprises the expansion and modernisation of the electricity distribution network in the Czech Republic, consistently with the country's National Energy and Climate Plan and in alignment with EIB policies. The programme schemes are located in nine regions in the country, all comprising Cohesion Priority Regions. The programme delivers significant economic benefits over and above the financial return, in particular by addressing market failures linked to negative environmental externalities (GHG emissions from power generation and, indirectly, from mobility) and the supply of public goods (security of power supply), and has positive ESG impacts. The Bank's lending participation is expected to have an important impact on acceleration of the financed investment programme and improving its financial matrix. Extended tenor, longer availability period and diversification of lending base further strengthen the EIB's contribution to the objectives of this project.

Objectives

The project will allow the Promoter to maintain the reliability and quality of electricity supply, to cater to new system users, to integrate renewable energy and to connect electric vehicle (EV) charging stations.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 400 million

Total cost (Approximate amount)

EUR 752 million

Environmental aspects

The programme schemes are expected to have limited environmental consequences. Environmental impact studies will be carried out as applicable and mitigating and/or compensation measures will be applied as necessary.

Procurement

The Bank will require the Promoter to ensure that contracts for the implementation of the project have been and will be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/25/EU where applicable), as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.

Status

Signed - 22/11/2021