The European Bank for Reconstruction and Development (EBRD) has confirmed that it is making an additional loan of EUR110m ($156m) for the modernization of Stejarul Bicaz, Romania’s oldest hydropower plant.

The EBRD will provide EUR70m, with EUR40m being syndicated via two commercial banks – Erste Bank Group and Caixabank.

The new loan to SC Hidroelectrica, the state-owned hydropower company and the biggest electricity producer in Romania, is intended to increase capacity and improve operational efficiency.

The investment will finance the rehabilitation of the six units at the 210 MW Stejarul Bicaz, which has been operating for 50 years.

Ricardo Puliti, EBRD’s managing director for Energy and Natural Resources, said: “With this key investment, the EBRD is continuing to provide assistance to Romania in securing reliable access to sustainable energy.

“Our project will bring about significant energy efficiency improvements and will play an active role in strengthening further development of the country’s energy sector.”

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