CMS has advised Polski Fundusz Rozwoju on the planning for a new power unit with a capacity of 910 MW to be constructed at the Jaworzno Power Plant, owned by the Tauron Group. The Tauron Group reportedly was advised by DZP.
The cost of the new unit is estimated at PLN 6.2 billion, making it, according to CMS, “one of the largest investments currently underway in the Polish power industry.”
Under the agreement between PFR and Tauron Polska Energia, the funds managed by PFR will acquire shares in Nowe Jaworzno Grupa Tauron sp. z o.o., a special purpose vehicle owned by Tauron Polska Energia, the company that is building the new unit. The value of PFR’s capital commitment to the SPV will be PLN 880 million.
The new coal-fired unit will generate up to 6.5 TWh of electric energy annually, which corresponds to the needs of 2.5 million households. Currently the investment is 50% complete, and its full completion is planned for November 2019. CMS reports that the unit is being built to use super-critical technology "and will be the most efficient in its class in Poland, i.e. 45.9% net." The planned annual coal consumption – mostly from Tauron Group’s mines – is estimated at 2.8 million tonnes.
CMS carried out a due diligence analysis of the SPV, drafted and negotiated the investment agreement and the shareholders’ agreement between the Funds and Tauron Polska Energia and the main contracts for the project, including contracts for the sale of coal and contracts for the sale of electricity, which will be concluded between the SPV and Tauron Polska Energia.
The CMS team included Partners Jakub Marcinkowski and Piotr Ciolkowski, Senior Associate Olga Czyzycka, and, from the firm's EPC department, Partner Iga Lis, Counsel Agnieszka Skorupinska, Senior Associate Micha Andruszkiewicz, and Associate Piotr Prawda.
DZP did not reply to our inquiries.
Editor's note: After this article was published, DZP confirmed its involvment in this project, saying that they advised Tauron Polska Energia S.A. in the whole process of drafting, negotiating, and signing transactional documentation, including the main project agreements between the parties. DZP’s work was managed by Partner Rafal Hajduk, their team further including Senior Associates Krzysztof Fliszkiewicz and Grzegorz Filipowicz, and Associate Mateusz Koszel.
