EU wants Romanian small hydro plants sold

Hidroelectrica, the leading hydroelectric power producer, will privatize 51 small power plants this year. 20 plants are to be sold in the first of three bidding sessions, which is scheduled for September. Half are located on the Suceava River (Suceava County), five on the Casin River (Bacau County) and five others in Mures County. The second bidding will be held for the sale of 14 micro-hydroelectric plants, including some on the Suha Mare River (Suceava County) and the Ilfov River (Dambovita County). By yearend another 17 plants will be sold. The operation conducted by the power producer was targeted by a requirement of the energy chapter of negotiations with the EU. Hidroelectrica is supposed to sell by yearend 2007 150 micro plants. "The company holds 227 micro-hydroelectric plants, but only 150 are functional. These will be sold in order to attract foreign investment, thus sustaining regional development," Hidroelectrica officials announced. The company has sold 38 small facilities since 2004 when the privatization process began. The plants that are not sold will be modernized by the company and made available for commercial use. Hidroelectrica registered about 50 million euros in profit in the first half of the year, seven percent year-on-year, with 315 million euros in revenues. Last year the company reported 76 million euros in profit, the result of a record electricity production, 20 TWh, accounting for 33.7 percent of the total national production. The state, through the Ministry of Economy and Commerce, owns 80 percent of the company, after transferring a 20 percent stake to the Proprietatea Fund.