Czech-owned power utility CEZ has formally approved the decision to pay a total dividend of BGN 41 M to the Bulgarian government.

The payment of the dividend BGN 41 M to the state for the period 2006-2009 has been approved at early general meetings of the boards of CEZ subsidiaries CEZ Razpredelenie and CEZ Electro, the company announced.

CEZ Razpredelenie AD will pay the Bulgarian government a total of BGN 26.74 M (BGN 420.36 per share), while CEZ Electro AD will be paying BGN 14.33 M (BGN 8 686.60 per share). CEZ is the electricity supplier in Sofia and Western Bulgaria; under a separate arrangement, the company also bought 100% of the Varna Thermal Power Plant (TPP).

In both companies, the Bulgarian state has a 33% stake through the Economy Ministry, while the other 67% are owned by CEZ. The government of the Czech Republic owns 69.4% of the international energy group CEZ.

The Bulgarian government will be receiving the cash from CEZ within 30 days.

"The redistribution of part of the profits of a company among its shareholders as dividends is a normal practice. Over the past four year our priority was to use the profit in order to invest in the development of the electricity distribution network and the payment of dividends was not on the agenda. Both companies have good liquidity, and the present decision will not affect our investment plans," explained Jan Vavera, regional manager of CEZ for Bulgaria.

The payment of the dividend was negotiated in September at a meeting of Prime Minister Boyko Borisov with the CEZ management.

Since entering the Bulgarian market five years ago, CEZ has invested BGN 370 M in the rehabilitation and development of the local power network.