EBRD has granted a loan of €170 million to Romania to support its drive towards greater energy efficiency and competitiveness.
The loan is intended to help Turceni power plant become more competitive and more energy efficient.
The European Bank for Reconstruction and Development (EBRD)
has announced a loan of €170 million (US$ 242 million) syndicated loan to help
Turceni power plant in Romania become more competitive and more energy
efficient.
In a statement, EBRD said the financing is important step in
improving and modernizing of power generation unit at Turceni and “will reduce
harmful greenhouse gas emissions” and improve the country’s position in energy
competitiveness.
The objective of the Turceni Project is the rehabilitation
and modernisation of the plant in order to:
Increase availability, efficiency and therewith the
reliability of one of the most important power plant in Romania
Extend the unit’s life time by at least 15 years,
Improve the environmental conditions for complying with the
EU environmental directives
Implement a modern automation and control system, fulfilling
the UCTE requirements.
EBRD will retain €80 million with €70 million (US$ 114
million) to be syndicated to a group of commercial banks, consisting of Erste
Bank, Societe Generale, UniCredit and Intesa Sanpaolo. The Black Sea Trade and
Development Bank (BSTDB) will offer a parallel loan of €20 million (US$ 28
million).
Riccardo Puliti, EBRD Energy Business Group Director, said, “The
EBRD’s support for Romania’s further efforts to reform and improve the energy
sector will help address the country’s urgent investment needs in this area. “
“It will help Turceni make cost-effective gains in
efficiency and strengthen best commercial practices, improving its competitive
position on the Romanian and regional markets,” he added.
“This financing of the rehabilitation and modernisation of
Turceni’s unit 6 is important for Romania and is part of the Ministry’s broader
programme to support its energy companies in raising funds from the financial
markets”, said Adriean Videanu, Minister of Economy in a statement released by
EBRD. (Exchange rates: 1 EUR = 1.42106 USD)
