Project description
and objectives:
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The Bank is supporting the privatisation of the gas distribution company by
providing support to strategic investors. The Bank would partner with Gaz de
France, the winner for the recent tender for 51% shares in Distrigaz Sud (DGS)
in one of the first gas sector privatisations in Romania. Distrigaz Sud (DGS)
is the gas distributor and supplier in the southern part of Romania, including
Bucharest (serving approx. 1 million clients).
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Transition impact:
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Bank's participation will support the gas sector liberalisation process in
Romania and in the region in line with the EU directive on Gas and with the
South East Europe Regional Energy Market. Specifically the Bank will:
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support the first private participation in gas distribution sector and the
establishment of competition in the sector;
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support the establishment of transparent and market based tariff methodology;
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provide comfort to Gaz de France seeking to invest in Romania by providing
additional assurance with respect to political and regulatory risk;
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facilitate operational and financial efficiencies derived from the entrance of
GdF;
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enhance the transparency and credibility of the privatisation process; and
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indirectly catalyse the privatisation of the electricity distribution
companies (demonstration effect).
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The client:
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GDF International.
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EBRD finance:
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The transaction consists of an indirect equity investment in DGS through
purchase of shares from GDF International.
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Total project cost:
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tbc
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Environmental impact:
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The project was screed C/1 requiring an environmental audit of the
distribution company to be privatised.
An environmental audit of the Company has already been undertaken as part of
the privatisation process, which confirmed that there are unlikely to be any
significant environmental issues associated with the Company’s operations.
However, a range of issues were identified including hazardous waste
production and disposal; fugitive emissions of greenhouse gasses from
pipelines and combustion gas emissions.
The Bank’s environmental due diligence, which included a site visit by the
Bank’s Environmental Specialist, will address corporate environmental, health
and safety issues and identify any potential liabilities. The due diligence
will also establish the current status of compliance with Romanian and EU
environmental health, safety requirements and develop an environmental action
plan (EAP) to address any deficiencies. There are likely to be considerable
environmental opportunities associated with the privatisation process
particularly given the presence of experienced and environment-sensitive gas
companies. The potential for Greenhouse Gas reduction may also be significant.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Ms Valerie RUIZ-DOMINGO,
Gaz de France
E-mail: valerie.ruiz-domingo@gazdefrance.com
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EBRD contact:
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Louis Borgo, Operation Leader: borgol@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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