ROMANIA: Rețele Electrice companies attract new European financing, of over 300 million lei, for investments in networks in Giurgiu and Caraș Severin
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The Ministry of Energy and the companies Rețele Electrice Muntenia and Rețele Electrice Banat (part of the PPC group in Romania) signed two new non-refundable financing contracts through the Modernization Fund, for projects aimed at electricity distribution infrastructure in Giurgiu and Caraş Severin counties, it shows a PPC press release.
The two investment projects that will be carried out by the electricity distribution companies have a total value of 331 million lei (without VAT), of which the amount covered by the Modernization Fund will be over 244 million lei (without VAT) .
Rețele Electrice Muntenia will implement a project in the villages of Călugăreni, Crucea de Piatră and Moșteni-Brăniștari in Giurgiu county, where 115 transformer stations will be modernized; of these 78 will be new transformer stations. The medium voltage network will be replaced over a length of 96 km, respectively 49 km for the low voltage network and almost 1,700 branches will be replaced. The total value of the Giurgiu project is over 127 million lei, excluding VAT, and its maximum value, which is provided from the Modernization Fund, amounts to 97.1 million lei.
In the town of Bocșa in Caraș Severin county, with a population of approximately 17,000 inhabitants, Rețele Electrice Banat will partially modernize the medium and low voltage networks by replacing cables and conductors over distances of almost 38 km for the medium voltage ones, respectively 81 km for low voltage ones. The medium voltage network will be partially underground. Also, 47 transformer substations will be modernized, some of them being moved from the pole (aerial), into substations in concrete casing. The network elements will be switched to the remote control system and more than 7,300 connections will be restored. The total value of the project amounts to 204 million lei, excluding VAT, of which the maximum amount insured from the Modernization Fund is 146 million lei.
The validity of the contracts ends when the project sustainability monitoring period expires, i.e. 5 years from the date of putting the investments into operation.
Mihai Pește, general manager of the Rețele Electrice companies, said: “We have secured new projects in Giurgiu and Caraș Severin counties as part of our strategy to modernize the electrical networks, which will thus become more resilient, and consumers in these communities will benefit from electricity supply services to modern standards.”
Until now, the total value of the projects from non-refundable funds signed through the Fund for Modernization by the three Rețele Electrice companies (including those referred to above) amounts to over 1.4 billion lei without VAT, of which the value grants is over 1.1 billion lei, excluding VAT.
Rețele Electrice companies operate networks with a total length of over 133,000 kilometers in three important areas of the country: South Muntenia (including Bucharest), Banat and Dobrogea, covering a third of the local distribution market. The electrical networks operated by the three companies Rețele Electrice count 287 transformer stations and over 24,000 transformer stations.
