Profit of "Hidroelectrica" falls almost four times

The officials of "Hidroelectrica" said that in the first six months of 2011, the company had a turnover of 1.64 billion lei, up from approximately 1.5 billion lei in the similar period of 2011.

In spite of this, the profit of "Hidroelectrica" dropped significantly - almost four times - from over 194.5 million lei, in the first semester of 2010, to almost 52 million lei lei in H1 2011.

The quoted sources told us that "the difference between the two figures is explained by the low hydraulicity and by the increase in the cost of water", emphasizing that expenses increased 16%.

During the reviewed period, the company produced 9,220 GWh of electricity.

The value of the investments completed in the January-June interval was 2.38 billion lei, and in the second half of the year it would complete investment objectives of 3.8 billion lei.

Of all the objectives that "Hidroelectrica" wants to develop through partnerships, it will begin the procedures for the creation of Independent Power Producer (IPP) companies, for the Hydro Schitu Goleşti, Hydro Timiş, Hydro Buzău" and Hydro Barsa projects, after their approval in the General Shareholder Meeting of "Hidroelectrica".

• The CHEAP Tarniţa - Lăpuşteşti project has attracted the interest of a large number of investors

In August 2010, through a summary call for tenders, "Hidroelectrica" hired a general consultant (the partnership between "Deloitte Consultanţă SRL, HydroChinaZhongNan Engineering Corporation and the Romanian Commercial Bank (BCR)) for legal, financial, commercial and technical consulting services, in order to select investors and to create the company that would develop the CHEAP Tarniţa - Lăpuşteşti objectives.

At the moment, according to statement made by the management of the company, it is being transmitted to the

"The draft Government Decision for attracting investors" has been sent to the Ministry of the Economy, Trade and Business Environment (MECMA), and its approval will be followed by the procedure for selecting investors in the project company which will develop the CHEAP Tarniţa-Lăpuşteşti project.

The quoted sources say that so far there is a large number of investors interested in the development of this project.

The Romanian government considers that the building of the hydroelectric plant of Tarniţa-Lăpuşteşti represents a priority objective for the medium and long term development of the energy sector, stipulated in Romania"s Energy Strategy for the 2007-2020 period.