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South east Europe’s energy sector to modernize with EBRD support
€60 million for South Eastern Energy Capital
The EBRD is investing €60 million for a 10 per cent stake into South Eastern
Energy Capital (SENCAP), a joint venture that will invest in south east Europe
to revamp run-down energy infrastructure. The improvements will benefit people
in the region who continue to suffer from power cuts.
By supporting the establishment of SENCAP, the EBRD is encouraging competition
in the south-eastern European energy sector, which will lead to much needed
investment in the energy sector.
The capital will allow SENCAP to purchase, develop and operate power and
energy infrastructure assets in the south-eastern European energy market
covering Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the Former
Yugoslav Republic of Macedonia, Montenegro, Romania, Serbia, including Kosovo.
Nandita Parshad, EBRD’s Director for Power and Energy, said: “Underdeveloped
and dilapidated energy infrastructure is hampering economic development in the
region. Similar investments are important to maintain an equilibrium of energy
supply throughout the region, especially considering the expected strong
growth of demand."
SENCAP will use funds from the EBRD and other sponsors to build up its asset
base in the region. There are over 20 energy projects in south east Europe in
need of urgent investment. The EBRD investment complements the commitment of
€540 million in equity capital of SENCAP's founders, the Public Power
Corporation S.A., the largest electricity utility in Greece, and
ContourGlobal, a New York-based investment company.
Since 1991, the EBRD has invested €7.6 billion in south east Europe, 14 per
cent of which in the energy sector.
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