Prague - Czech power utility CEZ and Hungarian energy firm MOL are to set up a joint venture to build gas-fired power plants in eastern Europe, the companies said Monday.

MOL and CEZ are each to hold a 50 per cent stake and equal voting rights in the new company with a 8.3 million euros in fixed capital, CEZ said in a statement.

The venture, CM European Power International, plans to invest in gas-fired power plants in Hungary, Slovakia, Croatia and Slovenia, the company said.

The joint venture initially plans to build two 800-megawatt steam- gas turbine plants at MOL's refineries in Bratislava and Szazhalombatta, Hungary, for estimated 1.4 billion euros, according to the statement.

CEZ bought early this year 7 per cent in MOL in a move seen as an effort to block a hostile takeover from Austria's OMV. The energy firms then agreed to cooperate in power generation in the region. (dpa)