E.ON Romania S.R.L

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 37169

Status Complete

Location

Romania

Business Sector

Energy

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 37169

Status Complete

Location

Romania

Business Sector

Energy

Notice Type

Private

Environmental Category

Approval Date

21 Nov 2006

Disclosure date

28 Sep 2006

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

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.

Transition Impact

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:

support private participation in gas distribution sector;
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;
provide a degree of support against regulatory risk;
facilitate modernisation of assets and improvements in operational and financial efficiency of distribution companies;
indirectly, catalyse competition and further private participation in the gas industry.

The Client

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.

EBRD Finance

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.

Project Cost

Approximately EUR 33 million.

Environmental Impact

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.

Technical Cooperation

None.

Company Contact

Georg Friedrich Rosenstock

Regional Manager Central/East European Shareholdings
E.ON Ruhrgas International AG

Email: georg.rosenstock@eon-ruhrgas-international.com

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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