Southeastern Europe is a region experiencing strong demand growth, but has inadequate, old generating capacity due to years of severe underinvestment. The old technology must be rapidly replaced to help meet the urgent investment needs of the region’s fast-growing economies, while also keeping up with new environmental regulations. In addition, significant new generating capacity is needed to fuel and sustain expected economic growth. Analysts estimate that nearly 25,000 megawatts of capacity will be needed over the next 10-15 years, including both new construction and environmentally compliant repowering of existing assets.

To help meet the urgent investment needs, we have partnered with a strong, regional player, Greece’s electricity company, Public Power Corporation (PPC) to form the partnership SENCAP S.A., with the goal of providing much needed investment in this important region.

SENCAP S.A. is committed to investing more than $750 million of equity capital in the southeast European market over the next three to five years. The European Bank of Reconstruction and Development (EBRD), currently the largest investor in southeast Europe, owns a 10% stake in the joint company and the International Finance Corporation (IFC) is finalizing arrangements to also acquire a 10% stake in the joint company.

Primary Markets

SENCAP focuses upon power generation projects, as well as lignite coal mines and associated trading opportunities. The Company also plans to invest in renewable energy projects, primarily wind parks and small hydroelectric projects.

Kosovo

SENCAP and its partner, Italy’s Enel, have been short-listed to develop lignite-fired power plants and a new lignite mine in Kosovo, an area containing some of the largest high-quality lignite deposits on the planet. The first stage of the plan calls for the development of a new lignite mine and the construction of a new 2,100 megawatt power plant (Kosovo C) and associated transmission capacity. The final piece of the project is the rehabilitation of an 800 megawatt power plant (Kosovo A). An independent study undertaken on behalf of the World Bank identified this project as the least-cost option to generating electricity in the entire South Eastern European region.

Positioned for Success

SENCAP expects to build a portfolio of greenfield and brownfield projects. To achieve success, SENCAP is implementing a strategic plan that utilizes the core competencies of its partners to maximize the value of each partner’s expertise.

PPC is a major regional electric power company, with world-class experience in lignite mining and generation (a major indigenous fuel in the region); ContourGlobal is experienced at developing and structuring power projects around the world and restructuring operations at formerly state owned enterprises and EBRD has a wealth of regional and infrastructure expertise as the first and the largest investor in the region. The Company is structured to minimize operational and organizational inefficiencies, and to act fast in a rapidly changing energy environment.