Energy sector needs EUR 30 bln investments in next 15-20 years


The splitting of Electrica SA will be decided today, Gabriel Dumitrascu, the head of the Energy Department’s Directorate for Privatisations, stated.

The energy sector will need over EUR 30 bln in investments in the next 15-20 years in order for Romania to be competitive and for energy independence to be ensured, Gabriel Dumitrascu, director of the Energy Department’s Directorate for Privatisations, stated yesterday. The investments will be attracted also through a fund consisting of the state’s minority participations in energy companies, Dumitrascu stated at the “Romanian Stock Exchange, Emerging Market” conference organized by ‘Ziarul Financiar’ daily.
The government launched last year the idea of setting up a fund with a capitalization of over EUR 1 bln, one that would include all minority participations owned by the Energy Department. “The issue of the fund has been raised for the past year. There are talks with the Public Finance Ministry. (…) We have to convince the Public Finance Ministry that we need new instruments with which to finance the economy. (…) The Public Finance Ministry wants these participations to continue to be administered as they have been until now,” Dumitrascu said, Mediafax informs. He added that the state’s minority participations in energy companies, including in OMV Petrom, are evaluated at several hundred million Euros. Likewise, Dumitrascu said that he does not rule out floating this fund on the stock market.
According to Dumitrascu, “a precursor” of this fund could be the company that will break off from state-owned Electrica SA and that will have the role of administering Electrica SA’s minority participations within other companies. The sale of 51 per cent of Electrica SA’s capital is scheduled for June, and the splitting of the company will be discussed today within the general shareholders’ meeting.
Gabriel Dumitrascu, the head of the Energy Department’s Directorate for Privatisations will propose to the government the setting up of a unique institution that would handle privatisations. “This institution will be responsible for respecting the timetable. If it’s the case, to say “ok, we cannot list an energy company now, but we will come with another one from transportation.” “I took advantage of a favourable context and I formed a team (the Energy Departments’ Directorate for Privatisations – editor’s note),” he added. Likewise, he plans to propose over 20 amendments to the privatisation law. “It’s unnatural for a state-owned company not to be able to participate with cash contributions to the hiking of its branches’ registered capital for example,” Dumitrascu stated. According to him, the state has suspended the contract with the intermediaries of the listing of Hidroelectrica during the period of insolvency and a date for the company’s listing cannot be proposed.
Hidroelectrica estimates production 6 pc lower than in 2013
State-owned Hidroelectrica, currently insolvent, estimates that it will produce this year 13.9 TWh of energy, 6 percent less than last year when it produced 14.8 TWh, according to a company communiqué. Romania’s energy production stood at 58.5 TWh last year. Last year the company produced 14.8 TWh, 25.4 percent more than the 11.8 TWh it produced in 2012. Hidroelectrica registered a record profit of RON 910 M last year. In 2012 the company reported losses of RON 170 M.

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