Moldova

REGION: Romania Agrees to Help Moldova in Electricity Supply

Helene Ryding — Wed, 07 Dec 2005 21:30:00 GMT

2005-11-17 18:16:11

Romanian President Traian Basescu said on Wednesday that his country was ready to supply electricity to neighboring Moldova. At a meeting with visiting Moldovan Prime Minister Vasile Tarlev, Basescu promised to provide electricity to Moldova which is facing an electricity shortage.

The crisis began last week after the Russian Inter RAO EES, which owns Moldova's only power station, cut down on electricity production, claiming that the company was running at a loss. Tarlev and Romanian Prime Minister Calin Popescu-Tariceanu also agreed to ask the European Union (EU) for funds to upgrade power grids of the two countries for cross-border electricity transmission.

On the eastern Dnestr region issue, Popescu-Tariceanu said the question must be resolved on the basis of respecting Moldova's sovereignty and territorial integrity. The Romanian leader told his Moldovan counterpart that Romania was concerned about the eastern Dnestr region issue which has posed a "threat" to Moldova.

Ethnic Russians and Ukrainians announced the secession of the east bank of the trans-Dnestr river region from Moldova in 1990, founding a "Dnestr Republic" that is not recognized by the international community. Russia has stationed troops in the eastern trans-Dnestr region. In 1992, a military conflict broke out between the Ukrainian government forces and troops of the "Dnestr Republic."

The two prime ministers also signed accords on cooperation in industry, agriculture, environmental protection and natural resources. Both leaders agreed to cooperate on the issue of gaining the EU membership. Moldova, which once belonged to Romania, became part of the Soviet Union in 1940 and declared independence in 1991 after the disintegration of the Soviet Union.

www.seeurope.net

REGION: South Eastern Europe Energy Community Treaty Signed

Helene Ryding — Mon, 07 Nov 2005 01:27:00 GMT

2005-10-26 13:20:58

Eight Balkan countries will join forces in Athens with the European Union today to establish a single regulatory framework for transporting energy in Southeastern Europe, in a bid to advance the region’s position on the world power map.
A treaty was signed by British Trade and Industry Minister Alan Johnson on behalf of the EU and by ministers from Albania, Bosnia, Bulgaria, Croatia, the Republic of Macedonia, Romania, Serbia and Montenegro and Turkey.

It will help ensure that countries in the region adopt EU single market regulations on energy regarding petrol, natural gas and electricity markets.

Development Minister Dimitris Sioufas described the treaty, which Greece also signed, as an historic agreement that will help unify the energy sectors. “The signing of this treaty creates new conditions for the economy, peace, stability and security in the wider region,” Sioufas said.

The treaty also aims at creating a stable regulatory environment that will boost energy investment in the region.

The World Bank has estimated that 21 billion euros will be poured into energy investments in the region because of the pact. The unification process has also drawn the interest of countries that are not directly part of it.

According to the Development Ministry, the United States and Canada have also given financial support to the treaty. Greece has played a central role in the issue as the country pushes ahead with plans to develop its link with different energy grids.
Apart from agreeing to run a natural gas pipeline from Turkey to Greece, which will then go on to Italy, the government has also signed a deal for a pipeline to carry Russian oil through Bulgaria to northern Greece.

www.seeurope.net

REGION: E.ON Energie Acquires 24.62% Stake in Electrica Moldova

Helene Ryding — Wed, 05 Oct 2005 18:05:00 GMT

2005-10-04 16:01:07

E.ON aims to increase its presence in the energy distribution sector in Romania and to get involved in energy production, declared Walter Hohlefelder, Board Member of E.ON Energie AG, at the official take over of 24.62% of Electrica Moldova.

According to the privatisation contract, E.ON paid EUR 31.4 M for the shares and will subscribe another EUR 68.6 M to the social capital in order to obtain control of 51%.
With Electrica Moldova in its portfolio, E.ON holds 9 per cent of the distribution market, and the stake is expected to increase after the take over of another state company.

E.ON competes with another nine investors for the take over of Electrica Muntenia Sud, “the crown jewel” of Electrica’s network, as state secretary Victor Alexandru once called it.

E.ON has an important stake in this take over, but is also interested in Transilvania Nord and Sud, Hohlefelder indicated.
He also said that the company wants to involve in production of energy in Romania, since on international level it already functions as both producer and distributor.

E.ON representatives recently visited CET Suceava, a thermal power plant in Moldova, confirmed Henning Probst, Country Manager for E.ON Romania, but he did not wish to make any further comments.

Probst explained that for Electrica Moldova, the company prepared investments with two separate schedules.
He said that heavy investments in IT, customer care centres and cash desks will be made in short term.

“We are prepared for them and they will be ready next year” Probst added.

On the other hand, infrastructure investments still need further planning.

Infrastructure development will have a different schedule-planning is to end in a couple of months, implementation of investments is to start in 2006 and last 5 to 6 years, the country manager explained.

Price increases are possible for electricity, if quality of services is improved and if the agreement of the National Agency for Energy Market Regulation (ANRE) is obtained said Hennig Probst.
However, for captive consumers, which are mostly domestic consumers, there will be no price increase assured Economy Minister Seres.

Minister Seres said that the state still holds an important stake in the company and following privatisation there will be consultations between the two parties, in order to ensure obligations are respected and quality services provided to the population.

In respect to investments in network modernisation, Seres added that Romanian companies need to be involved in an important proportion in the construction works.
The privatisation of Electrica Moldova was approved in April 2004 by the Government. In 2004 the company ranked first as contributor to Electrica SA’s turnover, with share of 12%.
In addition, another privatisation contract was just finalised.
The Economy Ministry and Czech company CEZ signed for the shares transfer of Electrica Oltenia.

CEZ paid EUR 47.4 M for 24.62% of the shares and is to contribute another EUR 103.6 M to the company’s social capital.