Project description
and objectives:
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The project is a purchase of a minority equity stake in a Romanian holding
company from E.ON Ruhrgas Group, the indirect owner of 51% of the shares in
E.ON Gaz Romania, a gas distribution company supplying northern Romania.
Through this transaction EBRD shall have an indirect 5% stake in E.ON Gaz
Romania (formerly Distrigaz Nord), the operating company which was privatised
to E.ON Ruhrgas Group in June 2005 through a transparent, public,
international, and competitive tender.
The objective of the project is to support and facilitate the efforts made by
E.ON Ruhrgas Group to realise technical and operational improvements to
develop best international practices (including all necessary measures in
respect to restructuring and improvements of the local business) over time in
the operating company.
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Transition impact:
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The Government of Romania pre-approved EBRD as a permitted transferee to which
investors interested in the privatisation of the gas distribution companies
could sell shares. The indirect participation of EBRD in E.ON Gaz Romania
S.A. would therefore be in accordance with the terms and conditions set forth
in the privatisation agreements between the Government of Romania and the E.ON
Ruhrgas Group.
Bank's potential participation will support the on-going privatisation,
liberalisation and modernisation of the gas sector in Romania, in line with
the EU directives on Gas and with the South East Europe Regional Energy
Market. Specifically the Bank will:
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support private participation in gas distribution sector;
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support the establishment of a transparent tariff methodology, based on
pass-through of unavoidable costs, fair return on invested capital, and
adequate incentives to improve operational efficiency and its monitoring;
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provide a degree of support against regulatory risk;
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facilitate modernisation of assets and improvements in operational and
financial efficiency of distribution companies;
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indirectly, catalyse competition and further private participation in the gas
industry.
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The client:
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The gas distribution company E.ON Gaz Romania S.A. is based in Targu Mures and
supplies 1.2 million customers in the northern part of the country.
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EBRD finance:
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This transaction involves the purchase of 9.8% equity stake in E.ON Gaz
Romania Holding, established by E.ON Ruhrgas Group to hold 51 % of E.ON Gaz
Romania – the balance of 49% ownership is held by the Government of Romania.
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Total project cost:
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Approximately EUR 33 million.
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Environmental impact:
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The project was screened C/1 requiring an environmental audit of the two
existing distribution networks and facilities to identify the current
environmental, health and safety policy and practices and potential
environmental, health and safety liabilities. The environmental due diligence
will (i) review existing pre-privatisation audits and other environmental data
(ii) address corporate environmental, health and safety issues (iii) review
selected facilities to identify potential liabilities (iv) establish the
current status of compliance with Romanian and EU environmental health, safety
and public consultations requirements. There are likely to be considerable
environmental opportunities associated with this project given the
environmental experience and track record of the investors.
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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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Georg Friedrich Rosenstock
Regional Manager Central/East European Shareholdings
E.ON Ruhrgas
International AG
Email: georg.rosenstock@eon-ruhrgas-international.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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