|
Romania accelerates telecom reform with EBRD support
To support the development of telephone services and the privatisation of Romania's telecommunications operator, Rom Telecom S.A., the European Bank for Reconstruction and Development (EBRD) is to provide a US$ 100 million (ECU 87.7 million) pre-privatisation loan, its first loan to a Romanian utility without a sovereign guarantee.
In 1992 Rom Telecom received a ECU 142 million sovereign-guaranteed loan from the EBRD, which has since been fully committed. "The EBRD fully supports the development of Romania's telecommunications sector and Rom Telecom's privatisation should help encourage the whole privatisation process and foreign capital inflow to Romania," said Charles Frank, First Vice President of the EBRD. "The EBRD has an excellent working relationship with Rom Telecom and the Romanian authorities. We are fully satisfied with the progress made under the Bank's original sovereign loan and the progress made to date in preparation of the Rom Telecom privatisation."
Rom Telecom was transformed into a joint-stock company in 1997, with full privatisation scheduled in 1998. The proceeds of the loan will finance part of its capital expenditure for 1998 and 1999, with particular emphasis on speeding up the installation of telephone lines, improving efficiency and service quality and providing enhanced and value-added services to customers.
"The Romanian Government has fully recognised the importance of telecommunications and its key role in the transition to a market economy. Its development is a key part of the reform programme," said Minister Sorin Pantis. "An independent regulatory body is to be established to ensure a transparent and equitable regime for all operators. Appropriate tariffs will be established. We are working with Goldman Sachs to prepare the company for the privatisation and we are committed to finding appropriate strategic investor in open competitive bidding and to selling at least 30 per cent equity stake in Rom Telecom. Ultimately, the privatisation of Rom Telecom will lead to the full liberalisation of the telecommunications sector by the year 2003, as required by EU directives."
"We are determined to privatise Rom Telecom in line with best international practices," said Mircea Tulbure, the newly appointed General Manager of the company. "Rom Telecom's development programme was largely supported by the EBRD's first loan and we see the new, second EBRD investment as a significant vote of confidence by the Bank. The US$ 100 million will enable us to continue our investment programme, to significantly increase telephone line penetration and continue to improve efficiency, quality and range of customer service."
In October 1997, the EBRD arranged a US$ 190 million financing with GSM operator, Mobifon. As at the end of 1997, the EBRD has committed ECU 1.1 billion to Romania and ECU 9.8 billion in total in the region. ECU 989 million has been in the telecommunications sector.
|
