German consortium RWE AG, Europe's third-largest power supplier, is planning to invest in the Romanian power distribution system, but is waiting for the Government to present the medium-term strategy for power development, Constantin Erbiceanu, head of RWE office in Bucharest, told Ziarul Financiar.
"We hope we will be accepted for negotiations as a strategic investor as soon as the privatisation of the electric power distribution is launched," Erbiceanu said.
According to RWE representatives, the strategy is very important for the future investments in the Romanian electric power system, for RWE and for other important companies willing to come to Romania and invest in this field.
RWE representatives welcome the split of Electrica's distribution subsidiaries into eight companies, as this will concentrate the number of subscribers, which will bring higher revenues to the company taking over one particular subsidiary.
"The first thing an investor who takes over a distribution network should do is cut the losses and invest in equipment upgrading so that the efficiency of the system should increase," Erbiceanu added.
Representatives of a consortium, comprising two German companies (RWE included), an Austrian and a Dutch company, are currently negotiating the contract for Isaccea-based back-to-back power station, which allows the interconnection of two electric power systems with different technical features.
RWE estimates the project's total value to stand at DM150 million. Transelectrica, the Romanian electric power transport company, will join the works.
"RWE's participation quota, through its RWE Net division, has not been settled yet. We hope the project will be finalised within 20 months after the contract is signed," Erbiceanu specified.
The German consortium expects the Danube to be cleaned in order to bring equipment from Bavaria at Isaccea this fall.
Isaccea-based power station will allow the transit of electric power to the Russian Federation, Southeast Europe and EU when the Romanian network is connected to UCTE (EU's electric power transport system). RWE is not interested to invest in the power production sector for now.
Industry and Resources minister Dan Ioan Popescu estimated that Romania would connect to UCTE starting with January 1, 2002.
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