Privatization in the Electricity System

The investors interested in taking over Electrocentrale Galati will be able to choose: buying all the stocks of the company or building, alongside the actual owner, Termoelectrica, a new plant for producing heat and electricity.

The privatization strategy will be made according to the offers received from the investors interested in this company. Therefore, Termoelectrica will choose one of the two options above. The procedure regarding the selling of the Electrocentrale Galati subsidiary together with the repair and services company Termoserv has already unsuccessfully started for three times this year, and the privatization announcement did not bring any investor by now. Termoelectrica announced yesterday a new offer for the privatization of the two units.

JOINT COMPANY. Besides selling the stocks owned at the Electrocentrale and Termoserv, Termoelectrica also proposes the building of a co-generating output (an output that produces electricity and heat jointly). If the investors will prefer this option, a separate joint company will appear and work as an independent energy supplier. Termoelectrica should own a part of the social capital of the new plant, which is to be represented by the Electrocentrale Galati assets that are necessary for this new target.

The financing of the entire project is to come from the investor, by capital funding at the new created company, and by the credits appointed by him. "The companies with experience in developing, financing and working with similar projects are expected to submit commitment less advice letters in a 20 working days time starting from now", says the privatization announcement.

CONDITIONS. The documents that are to be presented for taking part in the privatization process of the company will have to contain the annual report of the companies and a resume of their experience concerning similar projects. The investors will attach a "commitment less description of the preferred options regarding the partnership with Termoelectrica" as well as a report regarding the possibilities of the appearance of a consortium. After examining the letters, Termoelectrica will inform the possible investors about the future steps of the privatization process. The Electrocentrale Galati company appeared at the end of the last year.