EximBank has granted to Romelectro SA, one of the biggest general contractors in energy projects, a multi level financing facility amounting at 63 million Ron (14 million euro), for a project that is to be implemented in Egypt by the Romanian company.
Romelectro is the leading company of a consortium along with other two Romanian companies for the installation and putting into operation of a 1200 MW block of a combined cycle thermal power facility using natural gas in Burullus, Egypt, the total value of the contract amounting at 30 million Euro.
”We are delighted to be an active part of an extended project in energy that proves once again that Romanian companies are able to get involved in complex international projects where their high competitive level may be be turned to profit,” said Traian Halalai, executive president of EximBank.
”The agreement we have in place with Romelectro will ensure the necessary financing for the company to implement this very important international contract and, at the same time, all the commercial transactions related to it benefit form the safety conditions provided by an insurance granted under the state name and account covering a total export value 18 million Euro in Egypt.
”We consider this transaction a complete one, allowing EximBank to use all its competitive advantages in order to reach its strategic targets: supporting Romanian companies, especially those interested in expanding their operations on markets outside Europe and sustaining large projects in priority domains such is energy, having high financing needs but offering important opportunities as well”, said Halalai.
”We are glad that the re-shaping of our corporate strategy, focusing on consolidating our international presence is starting to show results and thus Romelectro is now coming forcefully back on the foreign markets. There are countries and regions around the globe that are promoting generous projects portfolios, in their vast majority new investments with the financing needs covered.
”We have been looking in great detail to these markets and we have launched campaigns for entering those areas that had risk and capacity profiles corresponding to our capabilities. We will continue to participate in international biddings for complex projects, clustering resources for as many Romanian companies as possible and, hopefully, benefiting from EximBank support during their implementation”, said Viorel Gafița, President of Romelectro.
The project in Egypt that Romelectro is participating in is part of a vast program of the Egyptian authorities for increasing the generation of electric energy to cover the increased consumption. Thus, the project comprises the development of three greenfield thermal power facilities in Beni Suef, Burullus and New Capital, the dead line being the end of 2018 with intermediate final stages in 2017.
The main equipment supplier is Siemens AG, that has signed last fall a contract amounting at 9 billion USD, with a syndicated financing from Deutsche Bank AG, HSBC Middle East and KfW Ipex Bank GmbH. Under this project, Romelectro, as the consortium leader along with another two Romanian companies, is a subcontractor for parts of the works related to the installation of a gas power unit of 1.200 MW.