Project description
and objectives:
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The project is a purchase of minority equity stake in a Romanian holding
company from E.ON Energie Group, the indirect owner of 51% of the shares in
E.ON Moldova, an electricity distribution company supplying north- eastern
Romania.
Through this transaction EBRD shall have an indirect 5 per cent stake in E.ON
Moldova (formerly Electrica Moldova), the operating company which was
privatised to E.ON Energie Group in October 2005 through a transparent,
public, international, and competitive tender.
The objective of the project is to support and facilitate the efforts made by
E.ON Energie Group to realise technical and operational improvements to
develop best international practices (including all necessary measures in
respect to restructuring and improvements of the local business) over time in
the two operating companies.
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Transition impact:
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The Government of Romania pre-approved EBRD as a permitted transferee to which
investors interested in the privatisation of electricity distribution
companies could sell shares. The indirect participation of EBRD in E.ON
Moldova S.A would therefore be in accordance with the terms and conditions set
forth in the privatisation agreements between the Government of Romania and
and E.ON Energie Group.
Bank's potential participation will support the on-going privatisation,
liberalisation and modernisation of the power sector in Romania, in line with
the EU directives on Power and with the South East Europe Regional Energy
Market. Specifically the Bank will:
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support private participation in electricity distribution sector;
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support the establishment of a transparent tariff methodology, based on
pass-through of unavoidable costs, fair return on invested capital, and
adequate incentives to improve operational efficiency and its monitoring;
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provide a degree of support against regulatory risk;
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facilitate modernisation of assets and improvements in operational and
financial efficiency of distribution companies;
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indirectly, catalyse competition and further private participation in the
electricity industry.
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The client:
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The electricity distribution company E.ON Moldova S.A is based in Bacau and
supplies 1.3 million customers in the north-eastern part of the country.
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EBRD finance:
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This transaction involves the purchase of 9.8% equity stake in E.ON Energie
Romania, a holding company established by E.ON Energie Group to hold 51 % of
E.ON Moldova – the balance of 49% ownership is held by the Government of
Romania.
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Total project cost:
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Approximately EUR 11million
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Environmental impact:
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The project was screened C/1 requiring an environmental audit of the two
existing distribution networks and facilities to identify the current
environmental, health and safety policy and practices and potential
environmental, health and safety liabilities. The environmental due diligence
will (i) review existing pre-privatisation audits and other environmental data
(ii) address corporate environmental, health and safety issues (iii) review
selected facilities to identify potential liabilities (iv) establish the
current status of compliance with Romanian and EU environmental health, safety
and public consultations requirements. There are likely to be considerable
environmental opportunities associated with this project given the
environmental experience and track record of the investors.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Manfred Wirsing
Head Corporate Development - Europe
E.ON
Energie AG
Email: manfred.wirsing@eon-energie.com
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EBRD contact:
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Louis Borgo, Operation Leader: borgol@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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