The Romanian power sector is to receive a financing package of $204 million to help Transelectrica, the country’s power grid company, upgrade its transmission and communications systems and modernise the market systems within the country.
The package is expected to assist Transelectrica, which was established in September 2000, to unbundle the national power utility, liberalise the power sector in line with the EU and support Romania’s entry into the Union for the Coordination for Transmission of Electricity. This will permit Romania to become integrated within the Western European grid.
Transelectrica is expected to become the backbone of an new, market oriented electricity sector in Romania. The financing for the project was led by the European Bank for Reconstruction and Development (EBRD) which has lent $51 million. A further $81 million has been mobilised by the European Investment Bank (EIB) and EU Pharc has provided a grant of $17 million. The Romanian government is guaranteeing the EBRD and EIB loans.
