CEZ DISTRIBUTION NETWORK UPGRADE IV

Promoter – Financial Intermediary

CEZ DISTRIBUCE AS

Location

• Czechia

Description

An investment programme for CEZ Distribuce's electricity distribution network in Czechia over the period 2025-2026. The programme includes investments in the reinforcement and refurbishment of medium and low voltage networks.

Additionality and Impact

The programme comprises investments in the electricity distribution network in the Czech Republic over the period 2025-2026. It addresses the needs for the renewal of existing assets and planned development, including automation and tele-control. The programme contributes to maintaining or increasing security of supply by reducing the risk of supply interruptions, and it contributes to the integration of low-carbon generation and thus reduces carbon and air pollution externalities.

The investments contribute to achieving EU and national targets, as set out in the 2030 National Energy and Climate Plan of Czechia. 100% of the programme will benefit Cohesion regions in the Czech Republic.

The programme has good economic rate of return and social benefit and generates additional employment in construction. The capacity of the promoter is considered appropriate for the proposed project. The financing will also have an important signalling effect in times when energy companies face significant financing needs. Long tenor and flexible financing conditions (drawdown and repayment flexibility) provided by the Bank will help the Promoter in achieving the investment objectives. 

Objectives

The project caters for demand growth, the connection of network users, the integration of renewables, and the improvement of the quality of service and the efficiency of operations.

Sector(s)

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

Proposed EIB finance (Approximate amount)

EUR 800 million

Total cost (Approximate amount)

EUR 1402 million

Environmental aspects

The project includes components that may fall under Annex II of the EIA Directive 2011/92/EU as amended by Directive 2014/52/EU, which requires the competent national authority to determine the need for an environmental impact assessment (EIA). The impacts that can be typically expected for some schemes relate to visual impact, vegetation clearance, collision and electrocution of flying vertebrates, electromagnetic fields, noise nuisance, and disturbances during construction.

Procurement

The Bank will require the promoter to ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation: Directive 2014/23/EU / 2014/24/EU / 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

Status

Signed - 29/11/2024