Romania will float 2%-5% of its thermal power plant Craiova on the Bucharest Stock Exchange in the spring and raise the stake up to 15% in the summer, news agency Mediafax reported Teodor Atanasiu, the head of Romania's privatization agency, as saying Friday.
Atanasiu said the rest of the shares are likely to be floated on the stock exchange by 2009 at the latest.
"The plant needs EUR400 million for environment protection and upgrade projects," Atanasiu said. "We can get these funds through a share capital increase or by selling a stake on the stock exchange."
He also said Craiova is likely to be shut down in the next five to eight years unless it is sold.
In February, the privatization agency said it plans to list minority stakes in six state-run power plants and suppliers on the Bucharest Stock Exchange in a few months. The six companies are power plants Craiova, Rovinari and Turceni, and the three remaining branches of former monopoly Electrica SA.
The coal-fired power plant Craiova, located in southern Romania, is the third largest of its kind in the country, with an installed capacity of 930 megawatts.