EVN sells to Statkraft its part at HPP Devoll

Agreement regarding the sale of EVN AG’s stake in Devoll Hydropower ShA, a project entity for the construction of a hydro power plant in Albania, to Statkraft A.S.
On 14 March, EVN AG and Statkraft A.S. reached an agreement regarding the sale of EVN AG’s 50%-stake in Devoll Hydropower ShA to Statkraft A.S. The sale of EVN AG’s stake in Devoll Hydropower ShA to Statkraft A.S. remains subject to the Ministry of Economy, Trade and Energy of Albania’s consent to such sale, and an agreement between EVN AG, Statkraft A.S., Devoll Hydropower ShA and the Ministry of Economy, Trade and Energy of Albania to amend the concession agreement, as well as the approval of such amendment to the concession agreement by the Parliament of Albania.
The overall investment amount for the construction of the hydro power plant was at the time of the award of the concession agreement estimated by EVN AG at approximately EUR 950 million. A sale of EVN AG’s stake in Devoll Hydropower ShA would result in a one time negative effect on the results of operations after tax in an amount of approximately EUR 20 million. Such negative effect on the results of operations after tax would potentially be partially offset by effects related to electricity prices being below expectations. Furthermore, as this project is not project financed, EVN AG would no longer be obliged to provide further equity. EVN Group expects to increase its future financial flexibility. EVN remains active in Albania through its “Astha” project with Verbund AG.
 
energjia.al, 15.03.2013