THE CZECH REPUBLIC'S STATE-RUN ENERGY COMPANY CEZ SAID THURSDAY IT HAS CLOSED A 306-MILLION-EURO (386-MILLION-DOLLAR) DEAL TO BUY BULGARIA'S HUGE VARNA POWER STATION, DPA REPORTED. OFFICIALS FROM CEZ AND THE BULGARIAN GOVERNMENT'S PRIVATIZATION COMMISSION SIGNED THE AGREEMENT IN SOPHIA, SAID COMPANY SPOKESWOMAN EVA NOVAKOVA. CEZ WAS THE GOVERNMENT'S SECOND CHOICE BUT THE INITIAL WINNER - RUSSIA'S RAO UES - WITHDREW ITS BID LAST YEAR. CEZ AGREED TO PAY 206 MILLION EUROS FOR THE PLANT AND INVEST 100 MILLION EUROS FOR CAPITAL IMPROVEMENTS. THE COMPANY ALSO AGREED TO INVEST 40 MILLION EUROS IN SEPARATE ENERGY PROJECTS AROUND BULGARIA. THE COAL-FIRED PLANT NEAR THE BLACK SEA WILL BOOST CEZ'S TOTAL GENERATING CAPACITY BY 10 PER CENT AND EXPAND THE COMPANY'S GROWING PORTFOLIO IN EASTERN EUROPE. IN RECENT YEARS, CEZ HAS BOUGHT POWER PLANTS IN POLAND AND DISTRIBUTION COMPANIES IN ROMANIA AND BULGARIA. THE VARNA DEAL FITS "OUR VISION OF BECOMING NUMBER ONE ON THE ELECTRICITY MARKETS IN CENTRAL AND SOUTHEASTERN EUROPE," SAID COMPANY VICE CHAIRMAN JIRI BOROVEC. WITH SIX UNITS GENERATING UP TO 1,260 MEGAWATTS, VARNA IS NOW CEZ'S LARGEST COAL PLANT.
