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EBRD and E.ON Energie support Bulgarian energy sector
Bank acquires 8 per cent stake in two power distribution companies
The EBRD has acquired an eight per cent stake in two Bulgarian electricity
distribution companies - EDC Varna and EDC Gorna Oriahovitsa - for €16.8
million from E.ON Bulgaria, the majority owner of both companies, and a
subsidiary of E.ON Energie, the world’s largest private energy supplier. E.ON
Energie acquired 67 per cent stakes in the companies in 2005, and subsequently
invited the EBRD to co-invest.
The Bank’s stake will support the privatisation of the electricity
distribution sector in Bulgaria and will improve efficiency and customer
service in the electricity market. The investment is also part of the Bank’s
larger commitment to supporting Bulgaria’s energy sector by working with the
private sector. In December 2005, the Bank committed to help build a new power
plant in Maritza, while it is also helping private companies improve energy
efficiency and promote renewable energy sources.
Anthony Marsh, EBRD Director for Power and Energy, said this project further
demonstrates the EBRD’s commitment to working with strong private investors in
the restructuring, privatisation and liberalisation of the energy sector. The
EBRD especially welcomes the opportunity to continue working with partners
like E.ON Energie, and its subsidiary E.ON Bulgaria, which are committed to
developing the energy sector in the region, said Mr Marsh.
E.ON Bulgaria and its subsidiary companies serve together over 1.1 million
consumers in the north-east region of the country, selling annually over 4.8
billion kWh electricity.
Manfred Paasch, Chairman of the Management Board of E.ON Bulgaria, said: “We
are extremely glad that through the EBRD, with which we have successfully
worked in Slovakia for more than two years, we have found a very competent and
highly recognised partner with a lot of experience in the market structures of
the energy sector in Central and Eastern Europe. This partnership is not only
positive for E.ON Bulgaria, but it is also a good signal for the further
development of the energy market in Bulgaria as a whole.”
The EBRD is the largest investor in Bulgaria, having committed nearly €1.3
billion in 61 projects.
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