Power

EximBank to provide EUR 32mn financing for Romelectro

EximBank has granted Romelectro, one of biggest EPC contractors for energy projects, a credit facility worth 150 million lei (EUR 32mn), destined for funding ongoing projects in Romania and abroad.

The credit facility includes a financing component covering temporary cash needs, as well as letters of bank guarantee, and will provide the company with the necessary funding for the execution of ongoing contracts in Romania as well as international markets.

“This cooperation with Romelectro started four years ago is important to us as it constitutes a showcase of the crucial role that EximBank may play in implementing the expansion plans of Romanian companies. With EximBank as main financial partner, Romelectro has succeeded expanding its project portfolio with several large domestic contracts, as well as extending and consolidating its presence on highly competitive external markets. It is proof that any company that has by its side a bank that understands its demands and adapts to its needs, as does EximBank, will soon meet with success” declared Traian Halalai, President of EximBank.

In the last few months alone, Romelectro has signed contracts with Transelectrica (the Romanian Power Transmisssion System Operator) for the refurbishment of several electrical substations (Focsani Vest, Roman Nord, Bacau Sud, Smardan, Craiova and Medgidia), worth in total over EUR 50 million. Also, the refurbishment of Bradu 400/220/110/20 kV substation is in its final stages, as well as the investment in multiple 220 and 110 kV overhead transmission and distribution lines in Kosovo.

In the field of power generation, Romelectro is leading the refurbishment projects for the hydroelectric power plants Stejaru on the River Bistrita and Slatina on the River Olt, worth in total around EUR 80 million, as well as several refurbishment programs for the coal fired thermal power plants which belong to CE Oltenia. In 2016 Romelectro signed, in partnership with a Spanish company, the contract for the building of a new 430 MW combined cycle power plant in Iernut, with Romgaz as investor, with a total worth of EUR 250 million.

Another prestigious achievement by Romelectro in the power generation field, in partnership with SAEM Energomontaj, is the execution and successful commissioning of the 1200 MW Unit 1 on natural gas of the Burullus thermal power plant in Egypt.

„Romelectro’s evolution in the past few years has consolidated our position as the most important EPC contractor of strategic energy projects in Romania. The company is currently undergoing a very favourable time, having succeeded in winning, beside projects abroad, tenders held by national companies for highly complex energy projects. In all these projects Romelectro attracts many Romanian engineering, manufacturing, construction and assembly companies, in its mission to become a hub for promoting Romanian industry at home and on international markets. In such approaches we need solid financial partners, with expertise in financing complex industrial projects, being familiar with the Romanian market specificity. EximBank is for us such a partner and we wish to continue to benefit in the coming years from this cooperation,” said Viorel Gafita, President of Romelectro.

In order to continue growing its portfolio of energy investments in Romania, and knowing well their volume and trends on the international market, Romelectro will continue its policy of consolidation of its position as general contractor for complex projects through the leverage of the potential of Romanian professionals and companies.

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