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Romanian power plants and transmission system to be upgraded through EBRD loan
Four thermal power plant units in Romania will be rehabilitated and the transmission system upgraded thanks to an ECU 78 million loan from the European Bank for Reconstruction and Development (EBRD). The loan, guaranteed by the government of Romania, will go to the Romanian electric power utility, Regia Autonoma de Electricitate (RENEL). The agreement was signed in London last Friday by Ron Freeman, First Vice President of the EBRD, His Excellency Sergiu Celac, the Romanian Ambassador in London, and Eugen Tanase, Deputy Director General of RENEL.
At the signing, Mr Freeman said: “Rehabilitation of essential infrastructure will increase the operational efficiency of the Romanian power system. In addition, it will help Romania to achieve one of its energy policy objectives, which is to meet the technical standards required to become interconnected with the western Europe power grid”.
The proceeds of the loan will enable RENEL to finance the rehabilitation of four thermal power plant units and upgrading of three substations of the generation and transmission system. It will encourage private sector investment and the development of a competitive and efficient power sector, and will lead to direct benefits for consumers through improvement in RENEL’s financial and operational performance and billing and collection procedures.
RENEL was established as an autonomous state-owned enterprise in 1990 and is responsible for the production and supply of power and thermal energy.
The project will mobilise co-financing from the European Investment Bank and EU-Phare, and will include a technical cooperation programme.
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