The project includes setting up a 171-kilometer power line that will connect Romanian city of Resita to Serbia’s Pancevo.
“The Resita-Pancevo project aims to increase power exchanges between the Romanian and Serbian systems,” Transelectrica said in a statement.
Overall costs are estimated at EUR41.3 million and the works are set for completion in July 2015.
Romania has a 73.68% stake in Transelectrica.
At around 12:30 hours, Transelectrica’s shares traded down 1.1% at 18 lei (EUR4.171) a share in Bucharest, amid a declining market. (EUR1=RON4.315)