The set up of the power company does not change the hydro strategy

The close to approval project by the Government of the Authority for State Assets Recovery (AVAS) doesn’t change, at least for the moment, the plans of Hidroelectrica company: representatives of AVAS sustain that the company would keep on selling micro hydro-electric power stations.

The government will take as soon as possible a positive decision regarding the set up of the national power company, despite of the so-called delays to the Ministry of Economy and Finance and of the recent political controversies. This decision won’t change for the moment the development strategy of Hidroelectrica Company.Sources within AVAS stated for us that once with the take over of those 361,98 million stocks of Hidroelectrica, the company will be able to continue the sale plan of the assets owned to micro hydro power stations (MHC). “The privatization of the micro hydro power stations will also continue after Hidroelectrica joins the national power company. The only difference is represented by the fact that this won’t be anymore in the subordination of the Ministry of Economy and Finance, but in the subordination of the Authority”, stated for us the representatives of AVAS. Despite all these, sources from the market sustain that the businessman Dinu Patriciu shows an increased interest for the purchase of Hidroelectrica’s stocks, which means that the last micro hydro stations owned by the company won’t be anymore transferred. According to the draft ordinance that follows to be approved by the Government, AVAS will take over from the Ministry of Economy and Finance 361,98 million stocks Hidroelectrica, each amounted to ten lei. After this transfer, Electrica’s capital will be increased with the contribution in nature of AVAS, represented by the complete packages of nominative stocks owned by the state at Hidroelectrica and at the power stations Rovinari and Turceni. In exchange for the stocks to those three power producers, Electrica will issue new stocks, that will also revert to the Authority (majority stockholder of Electrica and of those two power stations).

Price estimations

In 2004, it was initiated and started the privatization through the sale of 150 MHCs, among which in July, the current year, were for sale only 69. The officials of the power producer estimated then, that out of the privatization they will obtain between 120 and 160 million euro, if the interest of the investors maintains constantly. According to the statements given to Mediafax by the general director of the company, Traian Oprea, the money obtained from the sale of the last units of production will be used for the development of the company, investments and new technologies for the big stations. The cumulated power of the micro hydro stations is of 55,24 MW.

The public company has covered last year 25% of the power consumption at national level, producing 15,6 TWh, with 12,1% less against the level of 17,7 TWh reached in 2006. Hidroelectrica recorded in the first quarter of the current year an increase of almost 16 times of the gross profit, from 5,4 million lei during the similar period of last year, to 86,2 million lei (23,92 million euro), exceeding so 3,4 times the profit forecasted for the entire year.The company stakes in 2008 on a profit of 25,2 million lei, 3,2 times smaller in comparison with the profit of 80,1 million lei from 2007.

The established power of the stations operated by the company cumulates 6.325 MW, almost 40% of the total capacities of the power production system from Romania. The company will be included in a holding, of which will be part the power distributor and supplier Electrica and two power complexes from Oltenia, Turceni and Rovinari.

40 million lei, for the auction from March

At the beginning of March, Hidroelectrica has started the process of privatization of 16 micro hydro stations from the basins of the rivers Suha Mare, Suha Mica, Ilfov, Sovata and Fenes, having a total installed power of 5,036 MW and 4.657.143 lei to be liquidated. The total price of adjudication obtained as a result of those 5 auctions touched an historic maximum, reaching to the value of 40,7 million lei. The winners of the auction were Wienstrom GmbH from Austria for the group of MHCs from the basin of Ilfov river –Dambovita county, Romenergo for the group of MHCs from the basin of Suha Mare river–Suceava county, consortium made up by the companies H&M Company SRL Negresti Oas and SC Lescaci COM SRL Negresti Oas for the group of MHCs from the basin of Fenes river –Alba county and for the group from the basin of Sovata river – Mures county. According to the communicate of Hidroelectrica, for the next 31 micro hydro stations put for auction in April, the company has conditioned the participation of the investors by assuming an investment program for rehabilitation, modernization and technological development, carried on a period of up to five years.