Last checked at 19 Jun 2023 14:20
Announcement
Electrica Attracted EUR 57 mil. Non-Reimbursable Financing Through the Modernisation Fund
Electrica announces its shareholders and investors that its subsidiary Distributie Energie Electrica Romania (DEER) has attracted EUR 57 mil. non-reimbursable financing through the Modernisation Fund representing 80% of the eligible expenses for four investment projects in the electricity distribution network, projects whose total estimated value is approx. RON 77 mil. (without VAT). The total value of the four projects is 76 million euros, out of which the non-refundable financing is 57 million euros.
"One of the strategic objectives undertaken for the next period, at the level of the distribution operator of the Electrica Group, is to substantially increase the degree of access to non-reimbursable funds for investment works. This approach is in line with the Group's strategy, which provides for the maximization of performance in the managed infrastructure, but also the streamlining and digital transformation of the business. I congratulate our colleagues for their efforts, and I am convinced that it is only the first step in a series of such initiatives.", said Alexandru Chirita, CEO of Electrica.
Three of the projects will be carried out mainly Sibiu, Bihor and Maramures counties, aiming at increasing the reliability and capacity of the medium and high voltage network, increasing the quality of the electricity distribution service, ensuring the safety of the electricity supply for existing users, as well as ensuring the possibility of connecting future consumers and producers. The fourth project aims at digitizing the overhead and underground electricity distribution network, 118,505 Km in all the 18 counties where DEER operates.
| Investment project | Total project value(without VTA) | Maximum value financed through MF | Deadline |
1 | A new 110/20kv Sibiu West transformation power station, Sibiu county - An transformation power station, 110/20kV 31.5MVA, integrated in SCADA; - 3.6 km of 10 kV electric cable; - - 3.7 km of 20kV cable | 11.91 mn EUR | 9.11 mn EUR | 30 June 2025 |
2 | Modernization of the 110 kV electric energy distribution network in Oradea municipality, Bihor county, the area of the Center - Airport - Iosia - Mecanica - - 4 modernized and integrated power stations; - 21.44 km of new 110kV underground networks | 34.21 mn EUR | 25.46 mn EUR | 30 June 2026 |
3 | Asset data management subsystem - stage II - digitization of the overhead and underground electricity distribution network for - 118,505 Km, related to the 18 counties where DEER operates | 14.48 mn EUR | 11.13 mn EUR | 30 June 2027 |
4 | Modernization of the MV overhead power lines from Sighet station, Maramures county - 120.2 km of modernized 20kV LEA | 16.45 mn EUR | 12.22 mn EUR | 31 March 2026 |
TOTAL | 77.05 mn EUR | 57.91 mn EUR |
Note: the values in EUR were estimated at an exchange rate of 4.9604 RON/EUR
The Modernisation Fund is a financing instrument that contributes to the objectives of the European Climate Pact by supporting a socially just transition towards a green economy. More details about the Modernisation Fund can be found on the official websites:
· https://modernisationfund.eu/ (only in English)
· https://opportunity-ue.gov.ro/program/fondul-pentru-modernizare/ (in Romanian and English)
· https://energie.gov.ro/category/fondul-pentru-modernizare/ (only in Romanian)
Contact details:
Electrica Investor Relations
E-mail: ir@electrica.ro
Telefon: +40 731 796 111
CEO
Alexandru-Aurelian Chirita