The company is currently coordinated by state-owned thermal power producer Termoelectrica.
The obligation to privatize ELCEN is included in the letter of intent agreed between local authorities and the IMF during the latest negotiations in fall this year. This is the first appearance of ELCEN in the agreement with the international financial institution.
According to the letter, obtained by MEDIAFAX, authorities need to hire a legal adviser by the end of 2012, select a consultant for the privatization by the end of August, publish the prospectus by the end of October and conclude the privatization by the end of 2012.
The procedure will be preceded by talks with city authorities and suppliers, to solve outstanding payments and remove all arrears owed to gas company Romgaz.
ELCEN is one of the state-owned companies monitored by the IMF, and it is on a list of state budget debtors, with a debt of 43 million lei (roughly EUR10 million).
ELCEN operates seven electricity and thermal power production units in Bucharest, Constanta and Mures, which cumulate an installed power of 2,008 MW.
At the end of 2010, the company owed RON405 million to Romgaz. As such, Romgaz will take over the Mures unit, which was evaluated at EUR230 million.
ELCEN is Romania’s largest thermal power producer, covering some 40% of the heating consumption. At the same time, the company produces some 6% of electricity delivered to the national power grid.