EBRD Mulls Lending up to 85 Mln Euro to Romania's Hidroelectrica for Upgrades

The European Bank for Reconstruction and Development (EBRD) said it is considering lending up to 85 million euro ($110 million) to Romanian state-owned hydro power generator and supplier Hidroelectrica for an upgrade of one of its plants.

The credit will be used to finance the rehabilitation of six units of the Stejarul Bicaz hydro power plant (HPP) with a total installed capacity of 210 megawatts, the EBRD said in a statement.

"The rehabilitation shall permit to optimise the use of the 13 HPP cascade and of the existing upstream dam capacity," it added. "The project will lead to an increase in the efficiency of Stejarul HPP and in the flexibility of the units to be used as peak capacity, using state-of-the-art technology."

The total cost of the project is estimted at 110 million euro. The EBRD is considering providing its credit in an A/B loan framework, with the EBRD's A loan of up to 50 million euro, the lender said.

The loan is pending approval by the EBRD board on September 28.

Hidroelectrica manages a network of 272 hydropower plants and pumping stations with a total installed capacity of 6,423 MW. The company has a market share of between 25%-35% on the Romanian energy market, the EBRD said.

($=0.7747 euro)

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