(Adds information about another nuclear unit)
By Peter Laca
MOCHOVCE, Slovakia, Nov 3 (Reuters) - Italian utility Enel
SpA <ENEI.MI> intends to invest about 90 billion crowns ($3.8
billion) in Slovakia, out of an originally planned 110 billion,
Chief Executive Fulvio Conti said on Monday.
Conti said the investment would be carried out through its
66 percent-owned power generator Slovenske Elektrarne (SE).
The company may reassess other Slovak investment plans
involving the remaining 20 billion crowns, depending on SE.
The main element of Enel's overall investment is the
completion of two units at the Mochovce nuclear power station in
southwestern Slovakia, which was formally launched on Monday.
The Slovak investments are to be financed from SE's cash
flow, Enel said.
Conti added that the company will consider in future whether
to take part in a Slovak government project to build a new
nuclear unit at another site.
"Because of the financial markets being in turmoil these
days and the cost of financing being increased, we have to rely
on Slovenske Elektrarne cash flow more than in the past," Conti
told journalists at the Mochovce plant.
"We are getting close to spending close to 90 billion crowns
on this project and the ones we have ongoing... And then, we
will have to reassess, within our five-year plan, the
situation," Conti added.
In 2007, Enel said its total Slovak investment would be up
to 110 billion crowns until 2013.
Completion of the two Mochovce nuclear blocs is expected to
cost 2.8 billion euros ($3.61 billion), SE said.
The two new Mochovce units will have generating capacity of
440 MW each, which, SE said, should cover as much as 22 percent
of Slovakia's total electricity consumption.
Enel and the Slovak government, which holds the remaining 34
percent in SE, had agreed earlier not to take any dividends from
the company and to use its cash flow to finance investment
programmes.
Enel bought a 66 percent stake in dominant Slovak power
maker SE in 2006 for 840 million euros.
Enel said it wanted SE to be its base for central and
eastern Europe, with potential to export electricity to other
countries in the region.
Through Slovenske Elektrarne, Enel competes with central
Europe's largest power company, Czech utility CEZ <>,
which is also strong in the nuclear field.
SLOVAKIA'S NUCLEAR PUSH
The Slovak government of Prime Minister Robert Fico has
intensified efforts to boost nuclear energy since taking power
in 2006 as it seeks ways how to raise power generating capacity
to meet rising demand from the rapidly growing economy.
Slovakia had to shut one block of older power station
Jaslovske Bohunice at the end of 2006 as part of the country's
accession deal with the EU.
The shutdown has made Slovakia an electricity importer. It
has to close another block of the Soviet-designed plant at
Jaslovske Bohunice this year.
Fico reiterated on Monday the government's intention to
build a new unit at the Jaslovske Bohunice site, adding the
cabinet would have a study by December how to finance it.
"We want a partner to finance this project, but the state
must have a majority in it," he said.
(Reporting by Peter Laca, Editing by Anthony Barker)
