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EP BIH Company profile • Generation, distribution & supply of electricity • Established in 1946 • Share Capital 1.144 billion EUR (90 % state & 10 % private share) • Operates with 2 TPPs, 3 HPPs & 8 small HPPs • The biggest company in B&H Company structure Generation Distribution & Supply ED Bihac TPP Tuzla ED Tuzla ED Zenica TPP Kakanj ED Sarajevo HPP on Neretva • 90% state • 10% private ED Mostar Current facts 2012 Company’s key indicators Description Dec. 31, 2012 Dec. 31, 2011 Dec. 31, 2010 Shareholders capital 1,144 1,144 1,144 mil. € Operational revenues 454.0 467.1 431.3 mil. € Operational expenditures 378.3 397.1 369.3 mil. € 75.7 70.0 62.0 mil. € Profit/Loss 3.6 0.8 - 7.4 mil. € Production 6,509 7,295 7,181 GWh Installed capacity 1,682 1,682 1,682 MW Number of customers 715.411 707.301 695.833 Number of employees 4.873 4.878 4.934 EBITDA Balance Sheet 2012 (€ million) 2000 1800 1600 1400 1200 Short term liabilities 1000 Long term liabilities 800 Equity 600 Current assets 400 Fixed assets 200 0 Assets Equity & Liabilities *excluding coal mines Financial results 2012 (€ million) 500 Fees 450 Coal transport 400 Other costs 350 Maintenance 300 Transmission 250 Wages Material for gen. 200 other revenues 150 financing 100 services 50 heat 0 Revenues Costs Depreciation Profit electricity Production indicators Hydro GWh Thermal 8,000 2011 2012 % 7,000 Production 7,295 6,509 -10.8% 6,000 Thermal 6,138 5,368 -12.5% Hydro 1,157 1,141 -1.4% Hydro % 16% 17% End users (Gross) 4,820 4,900 +1.6% Balance 2,475 2,129 -14% 5,000 Thermal 4,000 3,000 2,000 1,000 0 2007 8000 2008 2009 2010 2011 2012 GWh 6000 4000 Reduced production in 2012: due to reconstruction of Unit 6 in TPP Tuzla 2000 0 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 `11 `12 Production and coal supply • EPBiH is 100% owner of seven coal mines within FBiH • Thermal power generation is dominant and is participating in total production between 70 – 80% • More than 85% of the total coal is produced within own coal mines • Hydro power generation is inferior and is participating in total production between 20 – 30% • Price of coal is defined by the FBiH Government (90% owner of EPBiH) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2,940 3,488 3,409 4,087 4,306 4,606 4,622 4,985 5,139 5,730 5,657 5,362 6,192 6,232 7000 6000 000 t 5000 4000 Coal purchase in 2012: 6,232 thousand tons +0,6% compared to 2011 3000 2000 1000 0 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 `11 `12 Average electricity market sales price Year Average price (€/MWh) 2006 2007 2008 2009 2010 2011 2012 35.4 47.0 56.3 64.9 44.9 51.1 53.3 Average price (€/MWh) 70 60 50 40 30 20 10 0 2006 2007 2008 2009 2010 2011 2012 NEW CAPITAL INVESTMENTS IN EPBiH Background of the opportunity Bosnia and Herzegovina is the country with the highest energy potential in Southeastern Europe: • • • • • • • Bosnia and Herzegovina is a net exporter of electric power 8.1% of Bosnia’s total exports is related to electric power Total currently installed and operating capacity - 3.400 MW Energy production capacities are not fully exploited. The total estimated hydro potential in BIH is estimated of 23,395 GWh/per year (of which only approx. 25% are being utilized) BIH has significant reserves of coal (3.7 billion tons of lignite and 2.2 billion tons of brown coal) which allow development of new thermal power plants. The Government of the Federation of BIH announced a series of projects in the energy sector in the total value of € 5 billion as a major building block of the economic strategy of the country Investment environment DRIVERS • Reliable energy supplier in the country and region; • Meet the requirements of EU & increase of generation from renewable energy sources; What will we do? > Uptake new technologies > Significantly reduce CO2 emissions • Massive investments needed in energy sector • Increasing demand for energy • Volatility in energy prices > Increase the efficiency of existing thermal power plants (replacement project) > Diversify the energy portfolio and increase the reliability > Improve distribution network • Frequent outages > Jobs creation • Resource endowment • Technical Capacity Projects are based on Strategic plan and program of development of energy sector in Federation of B&H and Government decisions List of the planned projects Thermal PP • TPP Tuzla, Unit 7 • TPP Kakanj, Unit 8 • TPP Bugojno, Unit 1 • CCGT Kakanj Renewable Energy PP - Hydro • HPP Vranduk • HPP Janjići • HPP Ustikolina • HPP Čaplje • HPP Kruševo & HPP Zeleni Vir • HPP Kovanići • HPP Vrhpolje • SHPP on Neretvica river Renewable Energy PP - Wind •WF Podveležje • WF Podveležje • WF Vlašić • WF Vlašić Investment Plan 2013 - 2015 Capital investments/External sources (in EUR millions) 285 300 250 208 200 213 160 150 100 49 9 50 0 2013 2014 2015 Capital investments External sources Project description TPP Kakanj - summary Basic project data Items Values Installed power 300 MW Production (based on 6.500 hours of production) 1.755 GWh Efficiency in condensing mode 39% Efficiency in co‐generation mode Coal consumption > 70% 1,3 million tons/year Emission SO2 < 200 mg/Nm3 Emission Nox < 200 mg/Nm3 Emission Dust < 20 mg/Nm3 Project development timelines Items Call for expresesion for interest Selection of project partner Closing of partnership aggreement Project implementation Issuance of the construction permit Start of civil works for the main power building (MPB) Start of commercial production Values June 2013 September 2013 February 2014 May 2014 September 2014 March 2015 September 2019 Total Investment Items Estimated total investment costs Values € 529 million Project description TPP Kakanj - Heating pipeline Basic project data Items Lenght from Kakanj to Zenica Diametar Estimated total investment cost EPBiH interest • • • • • Efficiency increasing of existing and future units Assure market for heating energy in long term period Revenue increasing Meet the requirements of EU Reducing of emissions Local community interest • • • • Stable heating sistem Less polution Energy efficiency Job creation Values 33 km 700 mm € 61,6 milion Project description HPP Ustikolina Overview • The HPP «Ustikolina» is located on the Drina river • 4 HPP already exist on river Drina • Connection to a grid is secured. Positive & Enviromental impacts • • • • • Independent energy production source for the region Waterflow control system improvement Water supply system improvment Development of fish farms Job creation Project description HPP Ustikolina - summary Total Investment Items Estimated total investment costs Values € 123 million Basic project data Items Values Installed power 60 MW Annual production 247 GWh Project development timelines Items Preliminary design Location permit Closing of financial structure Issuance of the construction permit EPC tender Start of civil works for the main power building (MPB) Start of commercial production Values May 2013 December 2013 March 2014 December 2014 March 2015 September2015 March 2019 Amil Kamenica – Executive Director for Capital Investment e-mail: [email protected] Elvedin Grabovica - General manager e-mail: [email protected] Edin Mujagic - Executive Director for Economic Affairs e-mail: [email protected] Tel: +387 33 751 005 Fax: +387 33 751 003