The Czech power company CEZ and the Privatisation Agency signed earlier today the sale contract for the Varna thermal power plant.

The plant acquisition would increase CEZ's production capacity with 10 per cent, the Bulgarian National Radio reported.

Economy and Energy Minister Roumen Ovcharov and CEZ signed a memorandum for the creation of an investment fund. According to the contract the Czech company is obliged to invest at least 40 million euro during the next four years.

The purchase will cost CEZ over 206 million euro. The company will buy 100 per cent of the plant's shares. Another 16 million will be invested in increasing the plant's power capacity by 16 per cent. In this way CEZ's total investment reaches 306 million euro.

The original tender was won by the Russian RAO EES. Its offer totalled 192 millioan euro. After the Russian company decided to quit the deal, the Privitisation Agency continued negotiations with CEZ, the company ranking second after RAO EES.