“We will continue our privatization efforts with the companies Electrica, ELCEN Bucuresti, Hunedoara and Oltenia,” the government said in its latest economic and financial policy memorandum signed with the IMF.
The document, obtained by Mediafax, shows the authorities plan to sell majority stakes in four units belonging to state-run power distributor Electrica SA. Additionally, the government wants to sell its remaining shares in five other units of Electrica which were privatized between 2005 and 2008.
While admitting that the privatization process has been experiencing “significant delays”, the government reiterated its commitment to finalize listing procedures for companies Transgaz (TGN.RO), Romgaz, Hidroelectrica and Nuclearelectrica by the end of 2012.
“Efforts will continue for other companies as well. Oltenia, in particular, will have our utmost attention, due to the great amount of capital it requires and its vital role for Romania’s energy security,” the document noted.
Oltenia power company was established in February, through the merger of mining company Societatea Nationala a Lignitului Oltenia (SNLO) and energy producers Turceni, Craiova and Rovinari.
Romania also plans to set up of a second energy company, Hunedoara, which will include thermal power companies Paroseni and Mintia and four of the seven units operated by the mining company Compania Nationala a Huilei.
According to the memorandum to the IMF agreement, Paroseni and Mintia companies have already been removed from the portfolio of thermal power plant Termoelectrica.
Termoelectrica was also stripped of its ELCEN Bucuresti subsidiary and some of its remaining four units will be included in a future company called Grup Electrocentrale, the government said.
“The remaining assets will enter liquidation in the first half of September,” according to the memorandum.