Agreement between Energa SA and PKN ORLEN S.A. on financing of CCGT Grudziądz power plant and update of the Long-Term Strategic Investments Plan of the Energa Group for 2021-2030
Current Report No. 31/2021
Date: 31 August 2021
Subject: Agreement between Energa SA and PKN ORLEN S.A. on financing of CCGT Grudziądz power plant and update of the Long-Term Strategic Investments Plan of the Energa Group for 2021-2030
Legal basis: Article 17(1) MAR - inside information
The Management Board of Energa SA ("Issuer") informs that on 31 August 2021 it concluded with PKN ORLEN S.A. ("PKN ORLEN"), the Issuer's strategic shareholder, an agreement regarding the financing ("Agreement") of the construction of a gas and steam power plant in Grudziądz ("Project"). In case of the investment decision regarding the Project, PKN ORLEN committed in the Agreement to finance up to 100% of the capital expenditures related to the implementation of the Project, but not more than PLN 1.8 billion, provided to the conclusion of a capacity contract by the company CCGT Grudziądz Sp. z o.o. (special purpose vehicle implementing the Project, 100% subsidiary of the Issuer). The indicated capital expenditures will be covered by providing cash to the Issuer or to the CCGT Grudziądz Sp. z o.o. for equity or foreign capital. The Agreement also defines the rules of supervision over the company CCGT Grudziądz Sp. z o.o. and managing the Project.
Simultaneously on 31 August 2021 the Supervisory Board of Energa SA adopted a resolution to update of the "Long-Term Strategic Investments Plan of the Energa Group for 2021-2030" ("Investment Plan"), about which the Issuer informed in the current report No. 10/2021 of 27 April 2021. According to the current version of the Investment Plan, total outlays on core- and additional investment projects of the Energa Group planned for 2021-2030 amount to approx. PLN 31.5 billion (including approx. PLN 13.6 billion in the Generation Business Line), of which approx. PLN 15.2 billion between 2021 and 2025. The amounts allocated in the years 2021-2030 in the Distribution Business Line (approx. PLN 16.9 billion) and in the Sales Business Line and other companies (approx. PLN 1.1 billion) have not changed.