Hidroelectrica administrator Remus Borza reports to DNA headquarters for hearings

Newsroom 12/07/2016 | 15:25

Remus Borza, the judicial administrator of Hidroelectrica reported on Tuesday to the National Anti-corrption Directorate (DNA) headquarters in Bucharest in a case involving the re-tehnologisation of The Iron Gate II Hydroelectric Power Station.

Upon leaving the DNA headquarters, Borza, who participated in hearings as a witness, stated that the case involved two contracts valued at around EUR 500 million started fifteen years ago. One of the contracts had as a subject the process of re-technologization of the The Iron Gate I Hydroelectric Power Station.

According to Borza, the contracts in question affected Hidroelectrica in a “dramatic” way, causing the company a loss of EUR 1 billion by awarding contracts for services without a tender. “Between 1997-2012, only one hydroelectric power station was a subject of re-technologization via tender. I am referring to the Lotru-Ciunget power plant, a 510 MW plant, at a cost o EUR 113,000/MW. At The Iron Gate II Hydroelectric Power Station, where I was heard today as a witness, the cost of the re-technologization process was 12 times higher, namely EUR 1.3 million/MW. The difference between Lotru-Ciunget and IG II is a contract awarded via public tender – Lotru-Ciunget, contract awarded without a tender – The Iron Gate II Hydroelectric Power Station,” Borza told the press.

In his opinion, the blame for this state of affairs belongs to a consortium of companies that were awarded, between 2007-2010, contracts without a tender and caused Hidroelectrica substantial losses.

State-owned electricity producer Hidroelectrica exited insolvency on June 21 for the second time following a decision by the Bucharest Court.

Georgeta Gheorghe

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