Union Fenosa Moldova

active

In February 2000, the Spanish Union Fenosa acquired three local electricity distribution companies during the privatization of the Moldovan energy sector. The acquired utilities, RED Centru, RED Sud and RED Chisinau supplied electricity to the central and southern parts of the Republic of Moldova and to the country's capital Chisinau, respectively. The distribution companies covered 70% of the population of the country and served a total of 785,180 customers in 2007. Union Fenosa was selected as the new owner as a result of an international competitive tender process. The Spanish company purchased the electricity distribution companies for $25.2 million. Union Fenosa invested over US$100 million in the three companies between 2000-2005. The International Finance Corporation (IFC), the private sector arm of the World Bank Group, was to lend US$25 million to the privatized electricity companies to support a plan to strengthen and expand current distribution networks and achieve greater efficiencies in the electricity sector. On 1 January 2008 the three distribution companies managed by Union Fenosa merged and established a sole company I.C.S. RED UNION FENOSA S.A. As of end 2009, Union Fenosa held a 94% interest in I.C.S. RED UNION FENOSA S.A., while the European Bank for Reconstruction and Development (EBRD), held a 6% interest. On December 21, 2009, IFC signed a US$15 million loan with Union Fenosa Moldova. In addition, EBRD contributed a loan of US$15 million. The funds were to support the company's 2010 investment program, which amounted to US$40 million. MIGA provided a guarantee of US$61.1 million in 2001, against transfer restriction, expropriation, war & civil disturbance, breach of contracts. The guarantee covers part of Union Renosa's (guarantee holder) investment 2010 and 2011 capacity from http://www.gasnaturalfenosa.com/es/inicio/actividades/presencia+en+el+mundo/resto+de+europa/1285338592919/moldavia.html http://www.miga.org/projects/index.cfm?pid=437 2010 investment commitment is US$40 million: composed of US$15 million loan from IFC, US$15 million loan from EBRD, and US$10 million in internal funds.