Decision on Electrica price reached

Italian energy group Enel and the Romanian authorities have reached an agreement on the sale price of the local electricity distribution companies Electrica Banat and Electrica Dobrogea, sources close to the privatisation process told Ziarul Financiar. “Several appendices to the privatisation contract are being worked on at the moment, as there are still talks being held on regulations that need to be endorsed by World Bank representatives. Under the circumstances, the signing of the contract may take place at the end of the month,” the quoted sources said. It is not yet possible to reveal the price of the transaction. Enel will be buying 24.6% in Electrica Banat and Dobrogea directly and will then take part in a capital increase in order to make up the rest of the 51%. The privatisation transaction is structured on three important “segments”, based around the price of the stake acquired, the investment programme to be realised over the next five years, and the debts at the time of the takeover. The latest available data show the two branches’ debts totalled around 5,000bn ROL (124 million euros). Electrica has recently closed a 1.75 million euro contract to buy Nissan vehicles for its field crews. Enel submitted its binding bid on March 8. The Italians are, after all, the only ones left in the race, as Public Power Corporation (Greece), EVN AG (Austria) and BKW (Switzerland) backed out one by one. ZF