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EBRD financing to help modernise Romanian power sector
Romania's power sector is to benefit from a US$ 51.5 million (€60.9 million) loan from the European Bank for Reconstruction and Development (EBRD). The loan, part of a US$ 204 million (€242 million) financing package, will help Transelectrica S.A., the national power grid company, upgrade transmission and internal communication systems, modernise market systems, and train staff in information and financial systems.
The financing should help Transelectrica, established in September from the unbundling of the national electricity utility, support Romania's efforts to liberalise the power sector in line with the EU Electricity Directive. It will also support Romania's entry into the Union for the Co-ordination for Transmission of Electricity, which will permit the integration of Romania into the western European power grid.
"This is a key project in what has been a watershed year for the Romanian electricity sector," said Anthony Marsh, EBRD Director for Power and Energy. "Transelectrica will become the backbone of the new market-driven electricity sector." He added that it will strengthen Romania's investment climate and boost private projects in the energy sector by ensuring free access to the national grid and encouraging international private investment.
"This deal was a truly joint effort," said Salvatore Candido, the EBRD’s Director for Romania. "We want to applaud the combined work of Transelectrica, the Ministry of Industry and Trade, the National Electricity and Heat Regulator and the Ministry of Finance to make it happen."
The Bank has led the financing effort for this project, mobilising US$ 81.2 million (€96 million) from the European Investment Bank (EIB) and a US$ 16.9 million (€20 million) grant from EU Phare. Romania will provide a sovereign guarantee for the EBRD and EIB loans. USAID and EU Phare have provided technical cooperation funds to strengthen the regulatory sector.
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