Romanian power producer executes EUR 8 mln guarantee letter

State-owned power company Hidroelectrica will execute next week a letter of guarantee worth EUR 8 million issued by lender UniCredit Austria on behalf of the Austrian group Andritz Hydro. In 2004, Hidroelectrica signed a EUR 400 million contract with the joint venture of Austrian Andritz Hydro and German Voith to refurbish five power plants on the Oltul Inferior river. The two companies carried out the work between 2006 and 2013, but various parts of the plants started to corrode during the contract’s warranty period, reports local Wall-street.ro. After the joint venture’s refusal to take responsibility, Hidroelectrica asked UniCredit Austria to execute the two companies’ letter of guarantee, worth EUR 15.6 million. Hidroelectrica’s lawsuit with Voith will come to an end in March. editor@romania-insider.com