Judicial administrator testifies on Romania's Hidroelectrica damaging contracts

Remus Borza, the judicial administrator of the largest state-owned power producer Hidroelectrica, was heard yesterday as witness at the National Anticorruption Directorate (DNA), in a case related to the refurbishment of the Portile de Fier II power plant. He later said that the hearing had revolved around two contracts totaling about EUR 500 million, which had been initiated 15 years ago, including the refurbishment of the Portile de Fier I power plant. These contracts have dramatically affected Hidroelectrica, because the company recorded a damage of EUR 1 billion by granting the contract directly, without a public tender. Between 1997 and 2012, only one power plant was refurbished via a public tender, namely the Lotru-Ciunget power plant. The price for the work on this plant was EUR 113,000 per MW. By comparison, the price for the refurbishment of the Portile de Fier II power plant was 12 times higher, namely EUR 1.3 million per MW. He said that the local investor Bogdan Buzaianu has been “ubiquitous” in these power plant refurbishment contracts. editor@romania-insider.com