Dec. 11 (Bloomberg) -- Romania’s Hidroelectrica SA called for bids to upgrade its Stejaru power plant for about 110 million euros ($130 million) after the project’s financing was suspended because of the company’s insolvency.
The state-owned hydro-power generator plans to use a credit from the European Bank for Reconstruction and Development, Erste Group Bank AG and CaixaBank to finance the modernization of the 50-year-old plant, Hidroelectrica said in an e-mailed statement today. The lenders suspended the funding, secured in July 2011, after Hidroelectrica entered an insolvency procedure in June as part of a government restructuring plan.
The EBRD will provide 70 million euros for the project, while the other two commercial banks will lend 20 million euros each, Hidroelectrica said.
An official announcement for the international tender will be published on the European Union’s Procurement Journal, Hidroelectrica said. The tender will begin in the first quarter of next year, the EBRD said on its website.
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