At the end of the implementation of the National Recovery and Resilience Plan (PNRR) we should have, in addition to Hidroelectrica, three other state-owned companies listed on the stock exchange, in the area of transport and energy, said Cristian Ghinea, former Minister of European Investments and Projects and PNRR coordinator.
“At the end of PNRR, we should have, in addition to Hidroelectrica, three other state-owned companies listed on the stock exchange in the area of transport and energy. Here was a whole rather difficult discussion with the Ministry of Energy and the Ministry of Transport, because they do not consider saying: ‘Look, we are listing this company in 2024.’ The Commission said: ‘But we still want some targets’ (…) Listing minority or majority stakes is an instrument through which we can improve the governance of these companies, you find serious investors who also have a stake in monitoring the performance. So, practically, the Romanian state must, in addition to Hidroelectrica, which is explicitly mentioned, to add three more large companies in the area of energy, transport to the listing process. There is also a reference to the environment, where we have a milestone-plan related to discouraging the use of fossil fuels for energy and heating and then, in that process, to extend to local thermal companies these principles of corporate governance,” said Ghinea, according to Agerpres.
He stressed that “a recurring recommendation of the European Commission in country reports” was to bring order to the governance of state-owned companies.
At the same time, Cristian Ghinea specified that this recommendation “was ignored for many years by the previous governments”, and this was the moment when the Commission “was very firm with this subject”.
“I think it is a logical position, because we are a country in the process of excessive deficit, but at the same time losing valuable public resources, either through negligence or by politicizing the management of state-owned companies,” Ghinea said.
According to him, there are three important areas in PNRR when it comes to state-owned companies, one of which is transport, “a difficult ministry, with quite a few companies.”
References to state-owned companies also appear in the energy component, the Reform ‘Improving the corporate governance of state-owned companies in the energy sector’, the former minister added. Thus, it provides for the appointment of Boards of Directors on a transparent and competitive basis, “where they are not in place”.
“At the state companies subordinated to the Ministry of Energy: Hidroelectrica, Romgaz, Nuclearelectrica. Also, the remuneration system must be linked to quantitative and qualitative performance objectives. The milestone for this reform is the fourth quarter of 2022. So, practically, we should see this improvement in the corporate governance of companies from the Ministry of Energy by the end of 2022. In parallel, somewhat related, the completion of listing a 15% stake in Hidroelectrica shares, so by 2023 Q2 is this milestone. We remind you that Hidroelectrica already has at Fondul Proprietatea 20%, with another 15% it is taking some steps to bring in investments and to have the supervision of some investors on the corporate governance side. As a cross-cutting theme, the theme is found in component 14 of ‘Good Governance, administration and justice reform’, where we have the new reform that explicitly talks about improving the general framework for implementing the principles of good governance,” he added.