CE Oltenia borrows EUR 193 M to modernize production group


James Hyslop, Director in EBRD, says the energy group will be one of the most modern and efficient in Southeastern Europe.

Oltenia Energy Complex has borrowed EUR 193 million from EBRD, BCR, BRD, and Unicredit to finance a EUR 220 million project aimed at technologically upgrading an electricity production unit. EBRD’s contribution was EUR 130 million of the EUR 193 million.
The overall cost of a project aimed at the technological upgrading of one energy group within Oltenia Energy Complex with a capacity of 330 MW is EUR 200 to EUR 220 million, Laurentiu Ciurel, the General Manager of the energy producing company, stated yesterday at a press conference, Mediafax notes. This investment will enable the production group to function for an additional 30 years and it will help maintain the company’s market share, he continued. Work for this project will be carried out over a period of 40 months.
In turn, Constantin Nita, Minister Delegate for Energy, stated at the same conference that negotiations for this loan began over a year ago. He emphasized the need for all coal energy production units to be modernized, a step which will lead to lower electricity prices.
According to James Hyslop, Director in EBRD, the rehabilitated energy group will be one of the most modern and efficient units in Southeastern Europe, resulting in reduced carbon emissions the equivalent of stopping 70,000 cars per year. Prime Minister Victor Ponta also attended the conference and said this project “is extremely significant,” while pointing out that Romania must keep a balanced energy mix to achieve independence in the energy sector.
On a change of topic, the listing agenda agreed upon with the International Monetary Fund has remained unchanged. Thus, Hidroelectrica, Electrica, and Oltenia Energy Complex (CEO) will be listed on the stock exchange in June, Constantin Nita, Minister Delegate, emphasized at the signing of a financing agreement between Oltenia Complex and the European Bank for Reconstruction and Development. Laurentiu Ciurel, General Manager of CEO, explained the only reason for delaying his company listing would be increasing the share capital with the equivalent of large surface area land properties, which could result in a 2 or 3 per cent increase in the state’s contribution.

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