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|Date:||12 June 2007|
The EBRD is providing Posta Romana with a €50 million loan to finance the construction in Bucharest of the country’s first fully automated sorting centre and the modernisation of an existing sorting centre in the north-western city of Cluj. Up to €20 million of the loan will be syndicated to commercial banks. Posta Romana will also contribute to this project with €10 million of its own cash flow.
The construction of an automated sorting centre is a key element in the modernisation of Posta Romana, which is facing increasing competition following the liberalisation of the market in line with EU regulations.
The state-owned company was established, in its current form, in 1991, when post and telecoms activities were separated in Romania. Today, Posta Romana handles 2.2 million letters and over 50,000 parcels daily through its 7,100 offices and outlets.
Up until the end of 2008, the company has exclusive rights to handle items up to a maximum weight of 50g. In return, it is obliged to serve all destinations in the country at the same price and quality. In other areas, such as express mail services, Posta Romana is already facing private competition.
The modernisation and restructuring of the company, currently underway with the assistance of specialised consultants, is fully supported by EBRD. The Bank also supported Posta Romana to develop its first long-term business plan and provided the company with guidance on international public procurement rules.
Posta Romana’s development strategy is focused on three main objectives: compliance with EU standards for service quality; increased operational efficiency; and the development of additional services.
Michelle Senecal de Fonseca, Director of EBRD’s Telecoms, Informatics and Media Sector, praised the agreement as historic: “This is not only the first postal project for the EBRD, it is also the biggest project for Posta Romana since it was first set up more than 150 years ago. It is the first time the company has accessed a long term commercial loan, and the EBRD is committed to making sure that the funding achieves its objectives.”
Dan Mihai Toader, CEO of Posta Romana, said: “This agreement is a landmark in the company’s pursuit of efficiency, business performance and service quality excellence extended to its customers and of its goal to become the postal services supplier of choice. It is the vision and drive of Posta Romana to make this project a success in partnership with EBRD and to pave the way for the next stages of operational and commercial development that Posta Romana is dedicated to achieve”.
The EBRD is the largest investor in Romania, having committed more than €3.50 billion in over 190 projects.
Last updated 12 June 2007
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