Procedure For The Financing Of Thermal Power Plant Reconstruction Adopted.

TheMinistry of Fuel and Energy adopted a “procedure for TPP reconstruction financing”, according to which up to 80% of all reconstruction costs will be covered by additional surcharges to electricity tariffs, with the rest to be covered by generation companies. GenCos are eligible for additional surcharges only if they find loans with a maturity date of three or more years after completing the project. Concorde Capital: The good newsfor GenCos is that the amount of compensation for their reconstruction costs is explicitly written. Still, it will not be easy for GenCos, with their huge debts, to find long-term loans. We hope the process of debt settlement, which started in late 2005, will allow the companies to sufficiently decease their accumulated debts in 2007. That would allow them to receive loans and take advantage of this newly adopted “financing procedure.”