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The World Bank
Europe and Central Asia Region News Release No 2005/305/ECA Contact: In Washington: Erik Nora (202) [EMAIL PROTECTED] In Romania: Alexandra Caracoti (40 1) [EMAIL PROTECTED] World Bank Approves US$1 Billion Financing Facility for South East Europe Energy Community WASHINGTON, January 27, 2005- The World Bank's Board of Executive Directors today approved a US$1 billion adaptable program loan (APL) facility to support the Energy Community of South East Europe program (ECSEE) - a program aimed at integrating energy systems in South East European countries into the internal energy market of the European Union. The ECSEE APL program will help the countries in the region develop the energy community by implementing priority investments supporting electricity market and power system operations, technical assistance for system development, and project preparation and implementation. "The Energy Community is a great opportunity for the countries of South East Europe to work together in order to provide a stable and continuous energy supply and to improve the security of energy supply. The creation of an area without internal frontiers for energy will contribute to economic development and social progress in the region," said Task Team Leader Mr. Kari Nyman. The ECSEE is being developed following the Athens Memorandum on the on the regional energy market process, signed in Athens, Greece on December 8, 2003. An international Treaty has been substantially negotiated and is expected to be signed in mid-June 2005. A comprehensive implementation organization has been established and is working to implement the Athens Memorandum and the forthcoming Treaty. World Bank financing will be provided using the adaptable program lending (APL) instrument, which is designed to help ensure the availability of adequate resources to fund priority investments for a functioning electricity market. The APL instrument enables the Bank to provide support in a flexible manner - when individual countries have met the policy triggers (country criteria under the Athens Memorandum and the ECSEE Treaty) and when individual projects are ready to receive Bank support. The ECSEE APL is directly linked to the Athens energy market process and the ECSEE Treaty - as long as countries meet their obligations in the Athens process and the ECSEE Treaty, they are eligible to receive support from the ECSEE APL facility. Other financial institutions and bilateral donors supporting the Energy Community include the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the German Development Bank (KfW), the United States Agency for International Development (USAID), the Canadian Agency for International Development (CIDA), and the governments of France, Greece, Italy, and Switzerland. The first constituent loan under the ECSEE APL facility, approved today by the World Bank, is a EUR66 million (US$84.3 million equivalent) loan to the Romanian hydropower generator Hidroelectrica S.A., with the guarantee of the Romanian Government. The loan will help finance the rehabilitation of Hidroelectrica's Lotru Hydropower Station and technical assistance for its institutional development and project implementation. The rehabilitation of the Lotru Hydropower station will ensure reliable services to the national power grid for another 20 years maintaining the power supply at the current necessary level of 510 megawatts. The fixed-spread Euro 66 million loan will be at the standard variable interest rates for LIBOR-based Euro-denominated single currency loans, payable in 17 years, including 5 years of grace. According to Mr. Nyman, "in view of Romania's progress with its energy sector reforms and its active participation and important role in the Energy Community's development, it is appropriate for Romania to be the first beneficiary of the ECSEE APL facility." For more information about the Energy Community of South East Europe, please visit: http://www.seerecon.org/infrastructure/sectors/energy/index.html For more information on the World Bank's work in Romania, please visit: http://www.worldbank.org.ro EuroAtlantic Club: http://www.europe.org.ro/euroatlantic_club/ *** Birou de traduceri autorizate. Oana Gheorghiu - tel/fax: 252.8681 / [EMAIL PROTECTED] Yahoo! Groups Links
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