BUSINESS

Romelectro to build 1,200-MW power plant module in Egypt

+ Company obtains RON 63 M from EximBank  + Romelectro is leader of a consortium formed alongside two other Romanian companies

 

EximBank Romania informs that it has offered a multi-product financing cap of RON 63 M to Romelectro SA, one of the biggest general constructors for energy projects. The bank loan will be used for a project that the company will carry out in Egypt. Romelectro is leader of a consortium formed alongside two other Romanian companies, and will assemble and commission a 1,200-MW module at the Burullus combined cycle power plant in Egypt, the contract having a value of approximately EUR 30 M.

“We are thrilled that we have managed once again to be part of a large energy project that proves once more that Romanian companies have the capacity to get involved in complex programmes with international participation, where they can put to good use their high level of competitiveness. The agreement we concluded with Romelectro will ensure the financing needed by the company to carry out this important external contract and, at the same time, will allow the execution of commercial transactions in complete safety, bearing in mind that EximBank has also offered the company, in the name and account of the Romanian state, an export insurance of EUR 18 M. From our point of view, this transaction is a complete one because it allows us to capitalise on all of our trump cards, while at the same time attaining our strategic objectives: supporting Romanian companies, especially those interested in the expansion of their operations on markets outside Europe, and large projects in economic domains of priority, such as the energy domain, featuring a high level of financing requirements but also important opportunities,” EximBank CEO Traian Halalai stated.

“We are glad that the rethinking of the corporate strategy, with a focus on the consolidation of our presence at international level, is starting to pay off, Romelectro making a strong comeback on external markets. There are countries and regions in the world that are promoting generous project portfolios, most of them new investments with ensured financing. We have analysed these markets in detail and where the risk and capability assessments indicated, we launched market entry campaigns. Thus, we will continue to take part in other external tenders that entail complex works, concentrating, for the implementation of these projects, resources from as many Romanian companies as possible, and, we hope, continuing to enjoy EximBank’s support for their implementation,” Romelectro President Viorel Gafita stated.

The project in which Romelectro will take part in Egypt is part of a larger programme through which Egyptian authorities seek to boost electricity production capacities in order to cover the growing consumption. Thus, the project entails the construction of three greenfield power plants (4,800 MW each) in Beni Suef, Burullus and New Capital, the deadline being 2018, with the interim stages having 2017 as the deadline. Siemens AG is the supplier of the main equipment, having signed last autumn a USD 9 bln contract which Deutsche Bank AG, HSBC Middle East and KfW Ipex Bank GmbH were authorised to finance. As part of this project, consortium leader Romelectro and two other Romanian companies subcontracted a part of the works related to the assembling of a 1,200-MW natural gas burning module.

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