6 January 2004 – Moldova’s Department of Privatization announced last week the privatization through tender of the two electricity distribution companies S.A. Red Nord and S.A. Red Nord-Vest. 75 per cent plus one share of each of the companies will be sold together.
After a pre-qualification procedure lasting until February 9, 2004, all qualified potential investors are invited to purchase the Tender documentation and to submit bids for the distribution companies.
Apart from their financial capability interested investors must meet the following professional requirements in order to be considered qualified: Experience in operating and managing power distribution on 110-0.4 kV networks in a competitive market environment as well as experience in developing private power distribution projects in a developing country or transition economy.
Tenders are being invited from foreign or Moldovan companies or consortia. If a consortium of companies joins as one strategic investor, one of the consortium members shall be experienced enough in the sphere of production and distribution of electricity in order to meet the pre-qualification requirements. The qualified consortium member shall purchase at least 33 per cent of the shares of the distribution companies.
EPIC, European Privatization and Investment Corporation and Raiffeisen Investment AG, the Central and Eastern European investment and financial advisory arm of the Austrian Raiffeisen Banking Group are financial advisers to the Government of the Republic of Moldova.