EU subsidies as additional financing for Łukaszów and Modlikowice Wind Farm projects

Polish Energy Partners Spółka Akcyjna (the “Spółka” or “PEP”) hereby informs that according to the information published on the website of the program implementing institution, the ranking of projects that apply for subsidies from the Operating Program for Infrastructure and Environment Action 9.4 Generation of energy from renewable sources, contest No. 1/PO IiŚ/9.4/2009, was published on September 10, 2009. Modlikowice (Talia Sp. z o.o.)  and Łukaszów (Amon Sp. z o.o.) Wind Farm projects implemented by the Company’s subsidiaries were listed in the basic ranking and they received the allocation of subsidies in the amount of PLN 40 million each (the total of PLN 80 million).

The subsidies cover 23% of the estimated budget of Modlikowice project and 17% of the estimated budget of Łukaszów project.  As a result of receiving the subsidies, PEP will possess the Company’s own funds required to complete the projects.  As a consequence, PEP will also improve its ability to implement another projects in the area of renewable energy.

In accordance with the procedure, upon the submission of the complete project documentation and the acceptance thereof by the institution responsible for the program implementation, the subsidy agreement will be executed within about 12 months.  The project documents include, without limitation, agreements for the delivery of wind turbines, other construction agreements, agreements for the sale of energy and rights in property as well as debt financing agreements for the projects.

The complete ranking of projects is published on the website of the institution responsible for the program implementation, i.e. The Polish Fuel and Renewable Energy Institute (Instytut Paliw i Energii Odnawialnej) at: http://www.ipieo.pl