EdF interested in advisory role in Transelectrica project

Electricite de France (EdF), one of the largest utility companies in the world, has re-entered the Romanian energy market after some years of absence. It has signed up in the race to advise Transelectrica in the running of an around 30 million-euro project.

The project will see the opening of a link with Hungary and an electricity station, and is worth some 29.7 million euros. Funding of the project will come from a loan from the European Bank for Reconstruction and Development (EBRD) for some 23 million euros and a PHARE grant of 6.5 million euros.

The EBRD loan is not backed by sovereign guarantees, something that rarely happens in the funding of investments by Romanian energy companies.

These funds will cover approximately 85% of the value of the project, with the rest to be self-funded by the company, Transelectrica officials say.

The money will go to the building of the 400 KV electrical line linking Arad (Romania) and Bekescsaba (Hungary); the loop will link up with the Arad-Oradea line for which the PHARE non-repayable loan was actually granted.

The tender for the consultancy contract in the project attracted the attention of powerful European companies.

According to sources close to the business, the short-list includes Electricite de France, Tractebel (Belgium), Colenco (Switzerland), Fichtner (Germany), Red Electrica (Spain) and ESB International (Ireland).

The advisory contract is estimated at 600-700,000 euros. The final bids are to be submitted in March.

Electricite de France has teamed up with the Romanian consultancy and engineering firm Institutul de Studii sI Proiectari Energetice (Energy Studies and Design Institute), which played an important role in the development of the national energy system.

The French utility giant was absent from Romania in the last few years, despite the start of privatisation in the electricity distribution sector.

A significant change to EdF’s management was made last year, and this could affect their strategy for Romania, analysts say.
adrian.mirsanu@zf.ro