RED Union Fenosa to change architecture of its network

RED Union Fenosa is negotiating a new €40 million loan with the European Bank for Reconstruction and Development and the International Finance Corporation, the company’s executive director Silvia Radu announced at the start of a seminar on the new architecture of the power distribution networks of RED Union Fenosa, Info-Prim Neo reports. “The money will be used to make new investments in the networks. Despite the crisis that affects everyone, RED Union Fenosa keeps the investment rate unchanged and will continue to allocate about €22 million a year for renovation and modernization works,” Silvia Radu said. The executive director also said that the tariff plan envisions investments of €14 million a year, but Union Fenosa makes everything possible to increase this sum in accordance with the real necessities. The EBRD now owns 6% of the holding in RED Union Fenosa after it granted a loan that is currently at the last repayment stage. The loan negotiated at present will not affect the composition of shareholders, though, as Silvia Radu said, the EBRD is a very good business partner. In 2010, Union Fenosa will start implementing an important project to change the architecture of its power distribution networks. According to the company’s specialists, a new architecture means abandonment of a part of the costly equipment, removal of hundreds of kilometers of worn cable, improvement of the quality of services. About 130 kilometers of overhead power lines will be transformed into underground lines. 65 switches that cost about €16,000 each will be removed. RED Union Fenosa now manages over 33,000 kilometers of power lines and about 8,700 transformers. It supplies electricity to more that 800,000 customers.