The Japan Bank for International Cooperation (JBIC) has signed a loan agreement totalling Y2.6bn (US$24mn) with Transelectrica, the Romanian national power transmission corporation. The loan was cofinanced with the Tokyo branch of ING.

This loan is a buyer’s credit and will support Japanese equipment exports by enabling Transelectrica to import power transformation equipment from Itochu Corporation and TMT&D for its Brazi West substation in southern Romania.

With its sights set on joining the European Union in 2007, Romania is moving to link its domestic power system with the European power system. To achieve this, the Romanian power sector must increase the reliability of the domestic energy supply. The exported equipment will consist of a substation facility with highly reliable gas-insulated switchgear, which is the first of its kind to be installed in Romania. This type of equipment will be increasingly utilised in Eastern European countries, as their national grids link up with the rest of Europe.