Oct. 25, 2000 (Prague Business Journal)—The German daily Süddeutsche Zeitung (quoting an Upper Austrian government official) says power utility CEZ was in breach of a 1998 contract by using a DEM 280 million loan granted by a consortium of foreign banks (led by Bayerische Landesbank) to build the Temelin nuclear power plant.

The loan was supposedly granted only to upgrade coal-fuelled power plants. CEZ denied the accusations. Separately, CEZ let 200 go from its headquarters, with further dismissals to follow as part of a restructuring program scheduled for completion before privatization.

It intends to form two separate divisions, one for traditional electricity production and one for nuclear generation, hoping to save hundreds of millions of crowns (Mlada Fronta 19, CTK, Hospodarske Noviny 1).

©2000, Prague Business Journal