National Energy Holdings To Guarantee Loans Of Absorbed Cos

Each of the two joint-stock companies will sign a protocol with state-owned lender Eximbank to take over the state-guaranteed loans granted by the bank to the companies included in the holdings, according to the new draft government decision on the reorganization of the national energy sector, obtained by MEDIAFAX.

The document is signed by Justice Minister Catalin Predoiu.

According to the new draft, the companies that will become part of the two holdings must notify their creditors about changing their organization structure and legal status.

The two companies will be registered at the National Trade Register Office after obtaining the functioning authorization and will take over, since registration day, all the respective state-owned companies’ rights and obligations towards third parties.

„To guarantee the reimbursement of the state-guaranteed loans, all assets of the newly-established companies will be mortgaged, until covering the sums owed to the Finance Ministry and creditors,” the draft says.

The new companies will have to invest in environmental projects from their own financial resources and European funds.

The initial draft act on the setup of the two national power holdings, drawn up last year by the Economy Ministry, did not include any of above provisions.

The two companies will be named „Electra” and „Energetica,” according to both the initial and the final draft.

The main field of activity of the two joint-stock companies will be the production and supply of electricity, the production, transport, distribution and supply of thermal power and the exploitation of mines and lignite quarries. In addition, Electra will produce nuclear fuel, according to the emergency ordinance draft.

Electra will include thermal power producers Turceni, Rovinari and Craiova, along with their subsidiaries, nuclear energy company Nuclearelectrica, hydropower generator Hidroelectrica’s branches in Ramnicu Valcea, Sibiu and Slatina, alongside Hidroserv, and the brown coal mining company SNLO.

Energetica will be set up through the merger between thermal companies Electrocentrale Deva and ELCEN Bucuresti, and thermal power plant Paroseni, that are currently part of electricity producer Termoelectrica. The new company will also include Hidroelectrica’s branches from Bistrita, Buzau, Cluj, Curtea de Arges, Hateg, Portile de Fier, Oradea, Sebes, Targu Jiu, Slatina, alongside with parts of pitcoal mining company CNH.

The share capital of the new-established companies will be made from the assets and liabilities of the reorganized state-owned companies’ respective subsidiaries, according to the updated sheet balance at December 31, 2009.

The commercial relations between the two holdings will take place only based on contracts, observing both local and European competition regulations, and the Economy Ministry will have to make monthly verifications in this respect, according to the notifications received from the two holdings.

The two companies will draw up their own reorganization programs. Restructuring programs approved within the companies that are subject to reorganization remain valid until they cease.

The two holdings will be allowed to benefit from subsidies for investments, in order to supplement their own resources, the bank loans and the funds attracted from the special funds set up for the development of the national energy system.

„The installed production capacities of the two new holdings will represent, in the first phase, around 48%, respectively 44% of the total national power output, a lower level compared with the European Union’s current average. Currently, Romania has no electricity company large enough to be able to participate in regional and international projects, in the benefit of the Romanian market. The analyses show that two power holdings of such dimension will allow the successful development of these types of projects,” the document says.

The companies will total around 8,900 MW output capacities.

The employees of the reorganized state-owned companies will be redistributed in the two new holdings and the collective labor contracts signed prior the holdings’ setup will remain valid until sealing the new ones.

Romania’s Economy Minister Adriean Videanu said Wednesday that the government will approve in a meeting later that day the draft act on the setup of the two national power holdings.

However, sources close to the matter told MEDIAFAX Wednesday that the government decided to delay by one week the setup of the two national power holdings, after the justice minister asked for certain legal changes to the draft.