Saturday, March 10, 2007

KfW IPEX-Bank ensures coal supply for the largest Macedonian electricity producer

KfW IPEX-Bank is providing EUR 16.6 million in
financing for the Brod Gneotino lignite mine in Macedonia, thus
helping to safeguard the electricity supply in that country. The
borrower is the Macedonian electricity producer ELEM and the loan has
a term of 12 years. The relevant agreements were signed in the
Macedonian capital of Skopje today.

The funds are being used to purchase a lignite excavator and a
spreader, which will be used for stripping and mining after the
construction period of roughly two years.

The project is vital to secure electricity production in Macedonia
over the long term as the coal reserves in the Suvodol mine will be
exhausted in approximately three to five years' time. Lignite from
Brod Gneotino is intended to ensure fuel supply at the two large
power plants of Bitola and Oslomej at least until 2025.

About ELEM

Elektrani na Makedonija (ELEM) is the largest electricity producer
in the Republic of Macedonia. It is owned by the state. The
enterprise operates a total of eight power plants and supplies 95% of
the electricity produced in Macedonia. It was spun off on 1 September
2005 from the previously integrated energy supplier Elektrostopan
stvo na Makedonija.

Contact: Mirce Kotevski, Tel: +389 23149 102, E-mail:

About KfW IPEX-Bank

Within KfW Bankengruppe KfW IPEX-Bank provides project and
corporate finance and offers trade and export finance in Germany and
abroad. Worldwide it conducts all market activities of KfW
Bankengruppe that are carried out on commercial terms. It has been
run as a legally dependent bank within KfW Bankengruppe since 1
January 2004 and as of 1 January 2008, will be separated into a
legally independent subsidiary. In 2006 KfW IPEX-Bank made new
commitments for a total of EUR 15 billion. It has Representative
Offices in London, New York, Sao Paulo, Bangkok, Beijing, Istanbul
and Moscow.

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