State guarantees for Transelectrica

The Ministry of Public Finances will guarantee a 25 million-euro loan to be granted by Nordic Investment Bank to Romanian electricity carrier Transelectrica. The loan is destined to finance a modernisation project aimed at Bacau-based Gutinas station, according to a recently adopted government decision. The loan, as well as associated interests and commissions, will be reimbursed by Transelectrica. Loan payment will be completed with sums derived from the Economy and Trade Ministry, in line with the normative document. Transelectrica in May signed with Nordic Investment Bank, an international financial institution mainly operating in Nordic countries, a memorandum of understanding related to the 25 million-euro loan. According to Transelectrica, the loan will be granted under favourable conditions for the company and will cover approximately 50% of the project’s total costs, which are estimated at 50 million euros. Gutinas station supplies power to all the counties in Moldova. Transelectrica hopes the loan contract will be signed by the end of the year, with the modernisation works due to start in the first quarter of 2004. The upgrading will be completed by ABB Sweden, which will sign a contract with Transelectrica by yearend. ZF