Start of ABB-Transelectrica contract

The national electricity carrier Transelectrica and Swiss-Swedish ABB Group at the end of last week commenced the $37m project aimed at retooling the 400/200 kV electrical station in Slatina. The contract signed by the officials of the two companies in May 2002 has recently become effective, as all the financing and securing terms were met. The funding of the project is 50% covered by a loan from Nord Investment Bank in addition to an approximately 10 million euro loan recently contracted by French bank Transelectrica from Credit Agricole Indo Suez, with the electricity carrier set to cover the rest from its own resources. The project is aimed at building two new high voltage stations to replace those in the Slatina area. These stations will be used for transporting electricity from Oltenia, a region rich in energy producing capacities, to energy intensive users in Eastern Romania. They will ensure transport of the energy required by Alro Slatina, the largest aluminium plant in the country and by the consumers in Bucharest. ZF