Current EFT Group Investments

In early February 2005, EFT signed a joint venture agreement with the government of Republika Srpska for a 76.11% interest in the Stanari coal mine. EFT will invest EUR 14 MM to refurbish the mine and to purchase new equipment. EFT intends to improve Stanari technology and efficiency in order to increase output to 600,000 tons over the next two years.

EFT has signed a generous social agreement as part of the contract. EFT expects that the current Stanari workforce will be increased to 350, thus supporting 1,000 people in the community. Wage and contribution arrears will be paid, with a five year provision for redundancies. In addition, EFT has agreed to a social program of KM 3.542.808 over the next two years which includes worker training, scholarships, a 10% wage increase, meal subsistence and health treatment costs.

The Stanari open pit mine is located 70 km east of Banja Luka and 30 km west of Doboj. Available reserves amount to 129.473.230 tons, giving the mine a minimum of fifty years further operation. Due to its low sulphur content, the coal in Stanari burns clean.

Fatnicko Polje Tunnel

Location: Republika Srpska
Project Value: 26 million

The Fatnicko Polje to Bileca reservoir tunnel project, won by EFT in partnership with civil engineers Hidrogradnja, is the largest engineering project undertaken in the local region for many years.

Tunnelling is expected to be completed during early 2005. In return for its investment of 26 million euros, EFT will draw the equivalent amount of energy from the power utility’s surplus, spread over seven years.

Maintenance of Power Plants

EFT will provide the pre-import and working capital finance necessary to pay for the maintenance and refurbishment of power plants. Under one structure, EFT will accept repayment of this financing through the delivery of energy over a period of time.

In the case of a state-owned plant, in providing such a facility, EFT may relieve pressure on central budgetary funds, and effectively provide access to funding at below the standard marginal cost of funds for regional power utilities, if indeed they can access the finance markets at all.

It is also efficient from a cash-flow point of view for EFT's clients to defer paying for maintenance and refurbishments works until such time as their renovated units are more efficient and productive.

Investments in the Transmission Grid

A principal obstacle to the development of a regional electricity market in south-east Europe is the lack of infrastructure for the free flower of power.

EFT is committed to the expansion and improvement of the regional interconnected grid, and in support of this is in direct contact and negotiation with a range of counterparts, from governments to providers of finance, to ensure the completion of a variety of cross border transmission lines that will enhance liquidity and competition in the region.

	Stanari coal mine
	In early February 2005, EFT signed a joint venture agreement with the government of Republika Srpska for a 76.11% interest in the Stanari coal mine. EFT will invest EUR 14 MM to refurbish the mine and to purchase new equipment. EFT intends to improve Stanari technology and efficiency in order to increase output to 600,000 tons over the next two years. EFT has signed a generous social agreement as part of the contract. EFT expects that the current Stanari workforce will be increased to 350, thus supporting 1,000 people in the community. Wage and contribution arrears will be paid, with a five year provision for redundancies. In addition, EFT has agreed to a social program of KM 3.542.808 over the next two years which includes worker training, scholarships, a 10% wage increase, meal subsistence and health treatment costs. The Stanari open pit mine is located 70 km east of Banja Luka and 30 km west of Doboj. Available reserves amount to 129.473.230 tons, giving the mine a minimum of fifty years further operation. Due to its low sulphur content, the coal in Stanari burns clean. Fatnicko Polje Tunnel Location: Republika Srpska Project Value: 26 million The Fatnicko Polje to Bileca reservoir tunnel project, won by EFT in partnership with civil engineers Hidrogradnja, is the largest engineering project undertaken in the local region for many years. Tunnelling is expected to be completed during early 2005. In return for its investment of 26 million euros, EFT will draw the equivalent amount of energy from the power utility’s surplus, spread over seven years. Maintenance of Power Plants EFT will provide the pre-import and working capital finance necessary to pay for the maintenance and refurbishment of power plants. Under one structure, EFT will accept repayment of this financing through the delivery of energy over a period of time. In the case of a state-owned plant, in providing such a facility, EFT may relieve pressure on central budgetary funds, and effectively provide access to funding at below the standard marginal cost of funds for regional power utilities, if indeed they can access the finance markets at all. It is also efficient from a cash-flow point of view for EFT's clients to defer paying for maintenance and refurbishments works until such time as their renovated units are more efficient and productive. Investments in the Transmission Grid A principal obstacle to the development of a regional electricity market in south-east Europe is the lack of infrastructure for the free flower of power. EFT is committed to the expansion and improvement of the regional interconnected grid, and in support of this is in direct contact and negotiation with a range of counterparts, from governments to providers of finance, to ensure the completion of a variety of cross border transmission lines that will enhance liquidity and competition in the region.