Post-Privatisation Power Distribution Loan

Location:

Moldova

Project number:

13220

Business sector:

Power and energy

Notice type:

Private

Environmental category:

C

Approval date:

28 Nov 2000

Status:

Completed

PSD disclosed:

09 Nov 2000

Project Description

The proposed EBRD financing consists of a loan to three power distribution companies owned by a strategic investor, Union Fenosa Internacional of Spain (UFISA), and located in Chisinau and the central and southern regions of Moldova. The financing will enable the companies to renovate, modernise and provide working capital for their power distribution networks with the aim to reduce losses, increase collections and increase reliability and efficiency of electricity distribution in their respective service areas.

Transition Impact

The project supports the continuing privatisation of the electricity sector in Moldova and the development of management know-how and technology, which should lead to collection and performance improvements.

The Client

S.A. Retele Electrice Municipiu Chisinau, S.A. Retele Electrice de Distributie Centru, and Retele Electrice de Distributie Sud (the companies), three electricity distribution companies recently privatised to Spanish sponsor UFISA and incorporated in Moldova. UFASA (Spain), the sponsor, is a wholly owned subsidiary of Union Electrica Fenosa S.A., a major private Spanish utility with electricity distribution experience in emerging markets.

EBRD Finance

US$ 25.0 million loan to the companies (€30.2 million). The IFC is also proposing to a make a US$ 25.0 million loan.

Project Cost

US$ 78.0 million (€94.2 million).

Environmental Impact

The project was screened C/1, requiring an environmental audit of the three regional electricity distribution companies (REDs). The audit, carried out by independent consultants, did not reveal any major environmental, health and safety concerns. The issues identified included possible PCB use, safety upgrades of the sites, improvements to fuel storage areas, hazardous waste handling and "housekeeping". Measures have been included in Environmental Action Plans (EAPs) for the REDs to address these issues. In addition, recommendations were made regarding general environmental management at the REDs. The EAPs have been agreed with UFISA.

The project offers the opportunity to steer the companies towards environmental management practices in line with western standards. This includes, over and above compliance issues, improved resource use, energy efficiency at facilities, reduction of distribution losses and improved materials and waste management.

The implementation of the project would result in the reduction of carbon dioxide emissions by approximately 30,000 tons per annum after 2005.

Technical Cooperation

None.

 

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

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