Bogdan Tudorache

Hidroelectrica convened the Extraordinary General Shareholders’ Meeting (EGSM) for 18.09.2020, during which several important decisions will be approved such as a new investment of 65 million lei at the Iron Gates (Porțile de Fier), the refurbishment of the Vidraru plant with 87 million euro and the increase of the share capital by 2 million lei.

The company has also put on the agenda the strategy of approving the sale of micro hydropower plants, but it is hard to believe that this will actually take place before September 2022, the new law banning the alienation of state assets in the next two years being recently promulgated by the Presidency.

Thus, the modernization of the electrical installations related to the hydromechanical equipment and the hydraulic drive installation related to the Iron Gates I overflow dam will have “an estimated total value of 65,889,159 lei (excluding VAT) representing the estimated value of the works of 65,236,791 lei (excluding VAT) to which are added various and unforeseen expenses amounting to 652,368 lei (excluding VAT),” it is shown in the EGSM document.

At the same time, the shareholders will approve the start of the acquisition of works for the refurbishment of AHE Vidraru, with an estimated value of 87,598,550 euro (excluding VAT).

Also, the procurement procedure for the modernization of CHE Vaduri will be started, with a value of about 34.76 million lei, a contract that will be directly awarded to the subsidiary Hidroserv.

In addition, Hidroelectrica will increase its share capital by the amount of 2,081,360 lei, of which 1,666,250 lei in-kind contribution (land) and 415,110 lei in cash contribution. About 166,625 new shares will be issued, with a nominal value of 10 lei in favor of the Romanian state, the main shareholder, while Fondul Proprietatea, a minority shareholder, will be able to exercise its preferential right within 30 days from the publication of the decision in the Official Gazette.