Lietuvos Energija AB - Notification on material event

Cooperation Agreement Regarding the Implementation of the NordBalt Project Signed

On March 18, 2010, Aloyzas Koryzna, Chief Executive Officer of Lietuvos
Energija AB, and Mikael Odenberg, Chief Executive Officer of Affärsverket
Svenska Kraftnät signed a cooperation agreement regarding the implementation of
the NordBalt project. This agreement aims to define conditions, at which
Lietuvos Energija and Affärsverket Svenska Kraftnät will jointly implement
NordBalt power link project by interconnecting the electricity systems of
Lithuania and Sweden. 

The cooperation of the parties will consist of three key stages - the link‘s
development, construction and post-construction stages. It was agreed that
ownership of the infrastructure, resulting from the construction of the power
bridge, will be split by the parties as follows: Lietuvos Energija will own the
converter station at Klaipėda transformer substation, the cable, stretching
from Klaipėda substation to the sea, and 50 per cent of the submarine cable.
The respective share of the cable and link‘s infrastructure on Sweden‘s
territory will be owned by Svenska Kraftnät. 

The deal also includes an agreement regarding the link‘s funding and the
conditions as well as procedure of use of the EU support, allocated to the
construction of the link. The prospective EU support totals EUR 131 million
(LTL 452.3 million). The costs of the power link is estimated at EUR 552
million (LTL 1.906 billion). 


Sigitas Baltuška
Kommunication Manager
AB "Lietuvos energija"
A. Juozapavičiaus g.13
LT-09311 Vilnius
T. +370 5 278 2442
sigitas.baltuska@lpc.lt
www.le.lt