The delayed transfer of shares to Enel as a result of the privatisation of Electrica Muntenia Sud electricity distribution and supply company, has led to the temporary postponement of investments worth 1bn euros from the Italian investor, states Matteo Codazzi, chairman of Enel Romania.
Last summer, Enel utility group was designated as the winner of the majority stake in the most valuable electricity distribution and supply company, Electrica Muntenia Sud, which supplies electrical power to the capital city. The sale price of the majority stake stood at 820m euros. At present, the contract has not been completed and the money has not been transferred into Electrica's account.
The share transfer was delayed because of the economic espionage scandal associated with the energy sector, resulting in several arrests of individuals involved in the privatisation of Electrica Muntenia Sud.
In addition, a delay was caused by the transfer of power companies from the portfolio of the Office for State Interests and Industry Privatisation (OPSPI) subordinated to the Economy Ministry to the State Asset Resolution Agency (AVAS).
"The delay will lead to the postponement of investments and, after stock is transferred, to the resumption of procedures to separate distribution from supply operations within Electrica Muntenia Sud, in an attempt to attain the same principles within all the power companies we hold," says Enel chairman.
The need for major investments in the electricity network of the Bucharest area has been proven by the frequent power outages the city has experienced lately. Enel is the biggest foreign investor in the sector of electricity supply and distribution and includes the companies Electrica Banat and Electrica Dobrogea in its portfolio.
"We have a budget of 4bn euros for acquisitions and investments in the companies we took over. A sum of 1bn euros will be invested in Electrica Muntenia Sud within the next 10 years and 1.5bn euros will go to Electrica Banat and Electrica Dobrogea within a similar time frame," states an Enel representative. Enel has repeatedly voiced its intention to create an integrated energy production-distribution-supply company on the domestic market.
"We are on the list of companies interested in the project related to reactors 3 and 4 of the Cernavoda nuclear power station. Having stated our interest in power stations we have recently submitted an improved bid to take over the thermoelectric power station in Braila. These proposals depend on the speed of the Romanian authorities," said Codazzi. In addition, he emphasised the importance of renewable energy to Enel's portfolio both in Romania and internationally.
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