George Iacobuta, the domestic manager Areva, the French-owned energy group, says the development of the energy services and equipment market depends on the economic situation of a country, infrastructure, industrial consumers and energy trade.
"The main drive behind this market is the overall economic situation. Infrastructure and industrial consumers are the factors ensuring success. Energy trade plays its part in this domain,"states George Iacobuta.
"In the last quarter of last year, the privatised units of Electrica started solid investment programmes. Compared with the previous years, an advance by approximately 50% can be felt,"stated Iacobuta.
Last year, the state renounced the most important branches in Electrica''s portfolio. Thus, Enel, the Italian utilities giant purchased Electrica Banat and Electrica Dobrogea, the Czech-owned CEZ company took over the biggest energy distribution company in terms of number of consumers, Electrica Oltenia, while E.ON (Germany) acquired Electrica Moldova. Electrica Muntenia Sud is next to be privatised, with the value of the deal likely to go beyond 750 million euros.
"Growth outlooks for 2006 are solid, but hard to quantify because of the research the beneficiaries need, which takes a long time to do. It''s a slow process,"Areva T&D representative in Romania also said.
George Iacobuta, 45, has run the Romanian operations of the French energy group since 2004, when the group globally took over the electricity transmission and distribution activities of Alstom. Areva, a company controlled by the French state, and involved in the nuclear power sector, operates in Romania through two companies-Areva T&D and Areva Servicii.
"In 2004, our approach to the Romanian market changed. We concentrated primarily on bringing a new name on the energy market. This is quite a difficult task considering the fact that the energy market, as a whole, is not a very flexible sector and has a traditional approach as regards the equipment and services suppliers,"says Iacobuta. Areva has worked with major companies that operate in the electrical power sector, such as Transelectrica, Electrica, Hidroelectrica and Termoelectrica. In 2005, Areva T&D derived turnover worth 25 million euros, of which projects carried out on behalf of Transelectrica exceeded 16 million euros. Contracts directly implemented by the Romanian unit of Areva generated revenues worth approximately two million euros.
For 2006, Areva representatives expect turnover to go up by about 10%.
This year, operations carried out on the Romanian market will be regrouped through the setting up of a company, including the two Areva subsidiaries, which will handle project monitoring and implementation and commercial activities, respectively.
"We are also considering a production unit in the region. Romania is a candidate, but not the only one,"says Iacobuta.
Areva in Romania
* In 2005 registered turnover standing at 25 million euros
* It aims to derive 10% higher turnover this year
* It has 10 employees
* This year, the operations of the two subsidiaries, Areva T&D and Areva Servicii, will be grouped under a single company
* Romania is a candidate for hosting a regional production centre
* It has as customers Transelectrica, Electrica, Hidroelectrica and Termoelectrica companies
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