Romania To Sell Energy Cos To Finance Investments – Consultant

„Between 2010 and 2011, the country will face a wave of privatizations to attract funds. (…) Nobody discusses about this issue, but it would come up at one time,” Kurt Weber, general manager of Horvath & Partners Romania, said Tuesday.

The state companies selloff is a viable and fair source for Romania to attract funds for investments in the energy sector, Weber said during the Mediafax Talks about Energy conference.

According to Horvath & Partners, global investments in the energy sector grew by 30% in value between 2002 and 2008, but the trend was reversed by the financial crisis.

Romania is seen facing difficulties in attracting funds for various projects in the energy sector, as most investors are reevaluating their plans and the number of assets is increasing.

Among Romania’s advantages in attracting investment funds are its balanced energy mix, as well as the good prognosis on demand growth, while its disadvantages have to do with access to the national network as well as the budget deficit and country risk.

Weber added that listing energy companies on the stock market to attract funds would currently bring less money than privatizations.