Hungarian energy group MOL Nyrt (MOL. BU) and Czech peer CEZ A.S. (BAACEZ.PR) have announced the launch of a power plant investment in Hungary.

MAIN FACTS:

-The project will be carried out by Tecnicas Reunidas S.A. under commission from MOL-CEZ European Power Hungary Ltd., the investing companies' joint venture.

-The facility will be a cycle gas turbine power plant in central Hungary's Szazhalombatta.

-The project is estimated to cost 600 million euros, 15% less than the original calculations in the feasibility study.

-The investment officially starts in Oct. 2011 with actual constructions scheduled to start at the end of the first half of 2012.

-MOL-CEZ contracted Siemens Zrt. under a long term service agreement on the plant.

-Budapest Bureau, Dow Jones Newswires, +36-1-267-0622; budapest@dowjones.com