|
Romanian energy savings to increase with EBRD loan
To significantly reduce energy waste and air pollution in five Romanian municipalities the European Bank for Reconstruction and Development (EBRD) is providing a US$ 45 million (ECU 40 million) loan to the Romanian Government The loan will be used to restructure and modernise the district heating network and introduce affordable, cost-reflective pricing.
"By introducing pricing based on real costs, the EBRD's Thermal Energy Conservation Project will help reduce market distortions in the heating sector and improve corporate governance in utilities to best market practise. It will also help the Romanian Government design an institutional framework for and to restructure corporatise the sector," said Jacques de Larosière, President of the EBRD.
"Commercialising the heating companies as a first step to privatisation, weaning the heating sector from government subsidies, promoting the development of a competitive market for district heating services and at the same time observing European environmental standards is all part of our commitment to develop an efficient market oriented sector," said Mircea Ionut Costea, Secretary of State in Romania's Ministry of Finance. "This is a perfect demonstration of the Romanian Government's willingness to implement policies required to meet European Union standards."
Bernard Jamet, the EBRD's Director of the Energy Efficiency Team, added: "By the year 2001 when this investment programme is completed, the total energy saved due to this project is estimated at US$ 19 million (ECU 16.67) per annum, representing an annual reduction of more than 200 million cubic metres of imported natural gas".
The five municipalities of Buzau, Fagaras, Oltenita, Pascani and Ploiesti will gain by having an energy efficient centralised heating network as well new tariff policies and regulatory framework in a shorter timeframe. The Thermal Energy Conservation Project will fund modern boilers and heat exchanger unit equipment, heat transport and distribution plus regulation equipment, including pre-insulated pipes, and metering, control and sub-station equipment.
|
