Romanian Transelectrica Has Tough Time Getting Funds – Director

„As far as financing is concerned, our situation is very bad. The lending conditions have changed a great deal,” Preotescu told a news conference.

„The company does not own the installations it uses, since they belong to the state, which reduces out ability to secure loans. Then there are our tariffs, which are regulated,” added Preotescu, Transelectrica’s director for power grid development.

He said the company drew some European funds, but these are sufficient only for „minimal investment.”

The company had an overall debt of 1.94 billion lei (EUR1=RON4.2819) at the end of 2009, according to consolidated financial reports.

For this year, the company expects a net profit of RON13 million.

Transelectrica has planned to invest some EUR250 million over the next five to six years in southeastern Romania, to build eight transformer stations and the power lines that will connect wind farms with an overall capacity of 4,000 MW to the national system.

Transelectrica is 73.6% owned by the Romanian Economy Ministry, while investment fund Fondul Proprietatea holds 13.5%.

On the Bucharest bourse early Thursday, Transelectrica shares traded flat at RON18.