Romania is set to receive 80m euros from the European Bank for Reconstruction and Development (EBRD), and the European Union to support the development of energy efficiency projects.
The financing is part of a more extensive loan worth 100m euros, which will also benefit Bulgaria, Terry McCallion, senior banker at EBRD, told ZF.
However, McCallion did not specify when exactly Romania would receive the loan, and added it largely depended on the local requests.
EBRD will release the funding primarily to small, middle-sized, and large companies that operate in the industrial sector.
The money will be released through three domestic banks, which the international financial institution has already signed agreements with. The first part of financing (worth 35m euros) was released on Thursday by BCR-20m euros, CEC-10m euros and Banca Transilvania-5m euros. The remaining 45m euros will be distributed in the future through some Romanian commercial banks.
"We have released financing worth 175m euros for Bulgaria's energy efficiency programmes over the past 4 years, due to the fact that this country needs greater support than Romania in terms of boosting energy efficiency," explained McCallion, who added that Bulgarian banks were more difficult to convince when it came to providing financing for energy efficiency projects. The EBRD official estimates between 80 and 120 energy efficiency projects in Romania will be financed through this credit facility.
In addition, Claudia Pendred, EBRD manager for Romania, confirmed the institution's interest in participating in the energy company the government plans to set up, a company that will comprise hydropower stations, thermal power stations, an energy complex and energy distribution subsidiaries.
"When the Government makes a decision, we'll be able to start talks. We believe the Government should not delay investments. Funds are needed for the rehabilitation of the energy sector," stated Pendred.
The priorities set by the new EBRD director for Romania for the following years entail support from banks in the development of the private sector, the energy sector and infrastructure.
"We want to develop programmes for companies that entail not only financing, but also participation in firms' capital, so they can become more competitive and expand their activities not just in Romania, but also abroad," added the EBRD official.
The EBRD is one of the biggest institutional investors in Romania, with investments worth 350m euros last year, up 50% on 2006. The overall value of the institution's investments revolves around 3.6 billion euros.
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