Nuclearelectrica Starts Investor Selection For 2 Reactors At Cernavoda Plant

08.27.2014 By Bogdan Neagu

Romanian nuclear power producer Nuclearelectrica (SNN.RO) Wednesday started procedures to select investors for a project to build two new reactors at the company’s plant in Cernavoda.

The Cernavoda plant, the sole nuclear power facility in Romania, currently operates two 700-megawatt reactors, covering around 20% of the country’s energy consumption. The two new reactors are expected to double the plant's capacity.

The competitive investors’ selection procedure for the completion of the project was approved by the company’s shareholders in a meeting last week, Nuclearelectrica said in a statement.

According to the procedure, Romania will cede a 51% interest in the project, but will keep, through Nuclearelectrica, at least 30% in the joint-venture.

“In the first stage, the new project company will be established exclusively with cash contributions from Nuclearelectrica and the selected private investor, corresponding to a quota of 49% and 51%, respectively,” Nuclearelectrica said in its Strategy for the continuation of the Cernavoda project.

Romania's nuclear power project in Cernavoda, valued at over EUR6 billion, was scheduled to kick off in 2010, but was sidetracked due to lack of funds after four of the initial six investors withdrew, citing economic and market uncertainties. The country’s remaining two partners, Italian utility Enel and ArcelorMittal Romania, withdrew from the project in late 2013.

The Romanian government, which owns 81.3% in Nuclearelectrica, said the reactors could be built by Chinese investors. China General Nuclear Power Group and Nuclearelectrica last year signed a letter on intent for investment in and development of two additional nuclear units at the Cernavoda site.