Bucharest thermal energy producer Elcen to be privatized by concession or PPP
Bucharest's thermal energy producer Electrocentrale Bucureşti (Elcen) will be privatized after its merger with thermal energy distribution company RADET either via concession, similarly to the contracts with Veolia for Bucharest's water company Apa Nova in 1999, or by public – private partnership (PPP), according to Bucharest mayor Sorin Oprescu.
The privatization would therefore ensure the needed funds to upgrade and/or replace the thermal energy distribution networks, which amount to some EUR 1.8 billion.
The Romanian Government recently approved the merger between RADET and Elcen, so that production and distribution will become integrated. This would also cancel the debt RADET had with Elcen. Elcen is controlled by state company Termoelectrica, while RADET is under the umbrella of the Bucharest municipality.
editor@romania-insider.com
(photo source: Elcen)
