New measures to speed up privatisation in the Romanian thermoelectric energy production sector


As part of its commitment to further the privatisation of the energy sector, the Romanian Government has recently approved the strategy for the acceleration of the privatisation and investment process in the thermoelectric energy production sector.

The decision is aimed at continuing the Government's efforts to achieve a successful privatisation of the sector, which began early in 2002 with the investment offer requests sent the major state-owned player, Termoelectrica S.A. The interest letters received in relation to this have raised a number of issues regarding certain requested operational improvements of the company, which the Government is currently attempting to solve.

Consequently, the Government has decided upon the following measures to be undertaken in relation to various branches, subsidiaries and working-units of Termoelectrica S.A.:

  • reorganisation and restructuring of the power production activity based on lignite through the creation of energy complexes in which mining exploitations would be integrated as cost centres;
  • the establishment of mixed companies or the increase of the registered share capital through capital contribution to the newly established energy complexes, combined with sale of shares in collaboration with potential investors ensuring the liquidity flow necessary for modernisation, upgrading and environmental protection investments;
  • promotion of the realisation of new "green field" type objectives;
  • reorganization of the Power and Heat Production Company "Termoelectrica" S.A., through the establishment of one subsidiary, namely the Power and Heat Production Company "Electrocentrale Galati" S.A. (already implemented through the Government's Decision no. 1580/2003); sale of Termoelectrica S.A.'s shares in its subsidiaries Termoserv Galati S.A and Electrocentrale Galati S.A., by means of a joint public tender process;
  • sale of the shares held by the Ministry of Economy and Commerce (through the Office of State Equity and Privatisation in Industry – "OPSPI") in the Trading Company "Termoelectrica Midia" S.A., by means of a public tender.

The government decision also establishes the possible privatisation methods of the Power and Heat Production Company "Termoelectrica" S.A., as follows:

  • sale of stock;
  • increase of the registered share capital through capital contribution;
  • the establishment of new companies with the participation of possible investors;
  • sale of assets.

For further information please contact Ana Radnev at [email protected] or on +40 21 231 64 74