“I have full confidence that negotiations will conclude by the end of March,” Zachia said during the ZF Power Summit seminar held by business daily Ziarul Financiar.
Companies holding bilateral contracts with Hidroelectrica accepted price increases and a 10% to 20% reduction of delivered quantities, as well as a shorter timeframe for the contracts, people close to the matter told MEDIAFAX recently.
On December 1, 2011, Hidroelectrica initiated negotiations with all bilateral contract beneficiaries, in view of increasing prices and reducing deliveries and timeframes.
The renegotiation of bilateral contracts and the lawful termination of the non-renegotiable ones, were requested by the International Monetary Fund, or IMF.
The deadline set by the IMF for the completion of renegotiations was February 15, but talks had not been completed by that date. As such, the Economy Ministry, majority holder within Hidroelectrica, asked the Justice Ministry to look at the documents in view of termination possibilities.
According to the sources, the contracts were sent to the Justice Ministry at the request of the IMF, even if the beneficiaries accepted the conditions imposed by Hidroelectrica.
Hidroelectrica started concluding direct supply contracts in 2000, and half of these agreements were extended until 2018.
Companies having direct sale contracts with Hidroelectrica include Alro, Romania’s largest energy consumer, as well as traders Energy Holding, Alpiq RomEnergie, Alpiq Romindustries (former Buzzman Industries).