Romania's Govt. urges state energy companies to be more active amid slowdown

All energy companies under the authority of the Romanian Ministry of Economy and Energy will have to draft and approve, until June 15, an investment plan for the next five years, according to an order signed by minister Virgil Popescu, local Profit.ro reported.

The purpose of the strategy is to use the financial resources these companies have accumulated for stimulating economic activity. Managers who fail to have the investment strategies drafted or passed will be replaced, minister Popescu has stressed.

Some of the state-owned energy companies have very high profits, but no investment plans. The strategies will have to outline the new investment projects to be carried out between July 1, 2020, and July 1, 2025, as well as the modernization of the current assets in operation. The strategy of each company will have to include clear deadlines, the estimated cost of each investment, and the financing sources.

The acquisition of shares in other companies is not the subject of this strategy nor the purchase of assets already in operation.

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