Romania Still Plans To Create Energy Champions - Official

04.07.2011 By Andrei Circhelan

Romania has not yet given up the idea of creating two national energy champions, and it is currently evaluating alternative solutions to this end, an Economy Ministry official said Thursday.

Romania has not yet given up the idea of creating two national energy champions, and it is currently evaluating alternative solutions to this end, an Economy Ministry official said Thursday.

"The ministry is still eager form Electra and Hidroenergetica. (…) By the end of the year we need to come up with alternative solutiosn, as decided in talks with the International Monetary Fund (IMF)," Alexandru Sandulescu, head of the ministry's energy department, told a seminar organized by business newspaper Ziarul Financiar.

One of the options considered, according to Sandulescu, is the creation of one energy complex that would include the power producers in Oltenia area and lignite company SNLO. Another complex would include coal company CNH and the Deva and Paroseni power plants.

"We have consensus in the ministry for the first complex, while the second complex is still in talks. These two projects are regarded by the ministry as intermediary steps towards the creation of Electra and Hidroenergetica," Sandulescu said.

Should the creation of the two energy giants fail, the ministry considers primary public offerings for hydropower producer Hidroelectrica and nuclear power plant Nuclearelectrica.

The creation of energy champions Electra and Hidroenergetica was blocked in court by investment fund Fondul Proprietatea (FP.RO), which holds minority stakes in most of the companies targeted for reorganization.