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COM (80)284
Vol.1980/0105

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COM(80)284final
COMMISSION Brussels,28thMay1980
OFTHE
EUROPEAN COMMUNITIES FOROFFICIAL USEONLY
GeneralSecretariat
REQUESTFORASSENTUNDERARTICLE54,SECONDPARAGRAPH,
OFTHEECSCTREATYTOTHEGRANTING OFLOANSTOBORROWERS OTHER
THANACTUALECSCUNDERTAKINGS ,TOFINANCEINSTALLATIONS
FACILITATING THEMARKETING OFCOMMUNITY COAL
(Communication fromtheCommission totheCouncil)
COM(80)284final

NOTETOTHECOUNCIL
Subject sRequestfortheassentoftheCouncilunderArticle54,second
paragraph ,oftheECSCTreatytothefinancing oftheconversion
tocoalofboilersinpowerstationsinBelgium,asdescribed in
theannexestothisnote.
TheCommission herebyrequests theassentoftheCouncilinaccordance
T.dththefollowing (draft)text?
COUNCIL
AssentsNos./80,/80,/80
oftheCouncilunderArticle54,secondparagraph ,oftheTreatyestablishing
theEuropean CoalandSteel'Community toenabletheCommission tograntthe
following loans; . ■
~Bfrs1500million (approximately 36910000EuropeanunitsofAccount)
toINTERCOM S.A.,Belgium,fortheconversion tocoaloftheboilersof
theRuienandPont--Brt51 <§powerstations ;
-Bfrs200million(approximately 4920000Europeanunitsofaccount),to.
EB3SS.A.,Belgium,fortheconversion tocoaloftheboilersofthe
Langerbrugge 19powerstation;
-Bfrs400million(approximately 9840000Europeanunitsofaccount)
toUNERGS.A.,Belgium,fortheconversion tocoaloftheAwirs4power
.station .:
TheCommission requested thisassentinanotesubmitted on
TheCouncilgaveitsconsentatthesessionheldon
BytheCouncil
ThePresident

CONFIDENTIAL
ANNEX TOTHE NOTE TOTHE COUNCIL
INTERCOM S.A. has submitted totheCommission oftheEuropean Communities
anapplication foralong-term loan ofBfrs 1500million (approximately
36910000EUA)tofinance theproject described ,below .
Borrower - '*■.■.
a)Identity :INTERCOM Soci6t6 Intercommunale Beige deGazetd'Electricity
S.A. ,established in1901 .Registered office inBrussels .
b)Share capital sBfrs 31986million asat31December 1979 »
Main shareholders ?ELECTROBEL group s21.7^*1 ELECTRORAIL group s6$;
ICGA group (imperiai Continental GasAssociation )s2.2$ .
c)Activities :generation ,transmission anddistribution ofelectricity
and steam .Distribution ofgas .Cable diffusion oftelevision and radio
broadcasts .In1979 *itssales Ofelectricity amounted to17.1 TWhand
accounted forabout 80$ofturnover .Theareas served embrace various
regions ofthecountry !inBrussels ,thecentral zonej intheFlemish
areas ,theNorthern andWestern zones $intheFrench-speaking areas ,
theHainaut andProvince ofLiSge zones .
d)Resources spotential netoutput of3917MWs wholly-owned installations
(2364MW)andholdings (1553MVl),In1979 ,21-75® ofINTERCOM 'S
electricity production wasaccounted forbynuclear power stations .
e)Workforce s8603
f)Turnover (1979)£Bfrs 45100million .
g)Position inthesector sleading Belgian producer ofelectricity
(covering 38$ofnational consumption ).

-2-
Description oftheproject --...- .^•....-
Intercomwillundertake majorinvestments fortheconversion tocoal
ofthe"boilerswhichareadaptable tothisfuel.Onthebasisofcurrent
estimates ,Intercom'splannedexpenditure ontheconversion canbebroken
downasfollows ;
Ruienpowerstation 1979 •1980 1981 Total
■■;: -(Bfrsm)
units1-2 / 50'"''■400-'.'"450
units3-4 300 500 500 1300
Pont-Brûlé potverstation
unit2 ,'250 300 .200 750
600 1200 700 2500
InthecaseoftheRuienpoiverstation,units 1,2,3and4startedcommercial
production in1957>1958,19^7andrespectively ,withgrosselectrical
outputsof62,62,138and128MWrespectively .Thegrosselectrical output
ofunit2ofthePont-BrQl€ powerstation,whichstartedoperating commercially
in1961,is124MW.
Theconverted unitswillbeequipped withelectrical dustsuppression
systems(electro-filtel*s )forv/hichthespecifications stipulate,whatever
• •
thetypeofcoal,amaximumdustlevelof250mg/Nm3,toleranceincluded,
to-ensuretheprotection oftheenvironment .
II.EBESS.A.hassubmitted totheCommission oftheEuropean Communities an
application foralong-term loanofBfrs200million(approximately 4920000EUA)
tofinancetheprojectdescribed below.
Borrower
a)Identity sEBES-Soci£t£sR^uniesd'Energie duBassindel'EscautS.A.,
established in1905*Registered officeinAntwerpandadministrative
headofficeinBruscels .

-3-
b)Sharecapital:Bfrs19897.5millionasat31December 1979*
Mainshareholders asat31December 1979sTractionetElectricity 12.80$$
Electrafina (33.5/=subsidiary ofElectrobel)s 8.4$jElectrobel (inwhich
Tractionhas;a12.35°holding)?5«7$.Inpractice,EBESiscontrolled by-
TractionetElectricity ,whichiB'partoftheSooi5t6G5n€rale deBelgique
group.
c)Activities :generation ,transmission anddistribution ofelectricity and
steam.Distribution ofgas.Cablediffusion oftelevision andradio
broadcasts .In1979>i+ssalesofelectricity amountedto16-3T'^Jhand
accountedforsome90/^ofturnover .Theareasservedcovermostofnorthern
Belgium,fromthecoasttotheMeuseareainLimbourg andalsotakesin
partofHainaut .
■ f
d)Resources :potential outputof3357MWswholly-owned installations
(2013MW)andholdings (1344MW).In1979>21.8%ofproduction was
accounted fort>ynuclearpowerstations . V .
e)Workforce :4800.
f)Turnover (1979);Bfrs28704million.
g)Positioninthesector:secondlargestBelgianproducerofelectricity
(covering 36%ofnationalconsumption ). .'
Description ofthéproject
EBESwillundertake majorinvestments fortheconversion fromoilto
coaloftheboilerswhichareadaptable tothisfuel.f>nthebasisof
currentestimate?,EBES'splannedexpenditure ontheconversion canbe
broken downasfollows :
Langerbrugge 19powerstation 1980 1981Total
(Bfrem)
300 100 400

-4-
TheLangerbrugge 19powerstationwascommissioned in1959 hasagross
outputof124MVJ.Theconverted unitswillbeequipped withelectrical
'dustsuppression systems(electrofilters )forwhichthespecifications
stipulate,whateverthetypeofcoal,rmaximumdustlevel .of250mg/Nm^,
tolerance included ,toensuretheprotection oftheenvironment .
III.UNERGS.A.hassubmitted totheCommission oftheEuropean Communities an
application foralong-term loanofBfrs400million(approximately 9840000EUA)
tofinancetheprojectdescribed below.
Borrower
a)Identity JUNERGS.A.wasformedbythemergeron8September 1976ofthe
following companies ?Electrogas ,Esmalux,Compagnie National ed'Eclairage
andUCELinalux-Hainaut ,thedistribution activities of'theSoci€t£du
GazdeNamur,ServicesPublicsetInvestissements (Serpi)andEBES's
activities intheTubizearea.
b)Sharecapital sBfrs9035millionasat31December 1979•
Hainshareholders ?ICGAgroup(imperialContinental GasAssociation )?24.3$;
Tractiongroup;19-9^(including EBESwith11.3$);Sofinagroup:16.4$.
c)Activities :generation ,transmission anddistribution ofelectricity and
steam.Distribution ofgas.Cablediffusion oftelevision andradio
broadcasts .In1979>itssalesofelectricity amountedto10.9TVJhand
accounted forsome$0'jcofturnover .Theareasservedembracevarious
regionsofthecountry 2Brussels andmainlytheprovinces ofNamurand
Luxembourg andpartofBrabant.
«d)Resources sPotential netoutputof1843.6MW.In1979>19-9$ofUNERG's
electricity production wasaccounted forbynuclearpowerstations .
e)Worlcforces 4350. •–
f)Turnover (1979/SBfrs225^7million.
g)Positioninthesector sthirdlargestBelgianproducerofelectricity
(covering 24$ofnationalconsumption ).

Description oftheproiect
UTJERGifillundertake majorinvestments fortheconversion fromoil
tocoalofthetoilerswhichareadaptable tothisfuel.Onthe "basisof
currentestimates ,UNERG'splannedexpenditure ontheconversibn canbebroken
downasfollows :
Aivirs4powerstation 1980 19811982Total
(Bfrsm)
,'200400200800
TheAwirs4powerstationwascommissioned in1967andhasagross
outputof131.7MN.Theconverted unitvailbeequipped withanelectro­
staticdustsuppression systemforwhichthespecifications stipulate ,
whateverthetypeofcoal,amaximumdustlevelinthesmokeof250mg/Nm^,
tolerance included,toensuretheprotection oftheenvironment .

-6-
Economic assessment
Inthecurrent economic climate andinviewofthenewsituation in
theoilmarket(considerable andunpredictable pricerises,uncertain prospects
ofmedium-term supplies),suchaprojectwillmakeasignificant contribution
tomaintaining theproduction ofcoalandreducing dependence onoil.
According totheestimates submitted bythecompanies ,theproposed investments
willmakeitpossibleto<reducethevolumeofoilimportsbyabout1.5million
tonnes(representing ,atcurrentprices,thesavingof$140milliononthe
Belgianbalanceofpayments).Theconversion tocoaloftheboilersthat
areadaptable tothistypeoffuelwouldseemtobecompletely inlinewith
theaimsoftheCommunity energypolicy.■'
About50$ofthecoalsuppliesfortheconvertedunitswillcomefrom
ECSCcountries .Itshouldbenotedinpassingthatthebreakdown ofcoal
consumption in1979ofthethermalpowerstationsinstalled -intheterritory
oftheKingdomofBelgiumwasasfollows(approximate quantities );
1700000tonnesofBelgiancoal
300000tonnesofGermanandBritishcoal,whileimportsfromthirdcountries
werelastyear2700000tonnes.
Theutilisation ofasubstantial quantity ofcoalofECSCorigin
justifies thegranting ofthefollowing loansappliedforunderArticle54?
secondparagraph ,oftheECSCTreaty s ,
-INTERCOM S.A.,
-EBESS.A.,
-UNERÇS.A.,Bfrs1500000000
Bfrs 200000000
Bfrs 400000000

-7-
Theprojects areexpected togenerate 50,8and16newjobs
respectively
Observations
INTERCOM andEEES have already been granted loans under Article 3
oftheCouncil Decision 77/270/Euratom of29March 1977 ,tofinance the
nuclear power stations ofTihange (amount paid outtodate sLfrs 500million )
andDoel (amount paid outtodate zLfrs .500million andBfrs 1000million ).