Romania: Investigation over Hidroelectrica’s Iron Gated Djerdap HPP overhaul

, SEE Energy News

The head of insolvency company Euro Insol and current manager of the Romanian electricity producer Hidroelectrica Remus Borza said that HPP Iron Gates II (Djerdap) was revitalized at a price 12 times higher than HPP Lotru-Ciunget.

Borza said that the authorities are currently investigating two contracts worth over 500 million euros which started 15 years ago and include the revitalization of HPP Iron Gates II on Danube. He said that Hidroelectrica lost over one billion euros by awarding these contracts directly, rather than through public tenders.

He stressed that between 2007 and 2012 only one hydropower plant has been revitalized through the public tender: 510 MW HPP Lotru-Ciunget and the price of the proct was about 113,000 euros per MW. However, the price for HPP Iron Gates II was largely inflated and amounted to about 1.3 million euros per MW.

According to him, the consortium of companies that benefited on these direct appointment deals between 2007 and 2010 at the expense of stateowned company are responsible for this situation. He also said that local companies such as UCM Resita, Energomontaj and Hidroserv have become undesirable since 1990 and that public contracts are often awarded to foreign companies, transmits