Romania Sticks To Plans For 1,000 MW Tarnita Power Plant

05.19.2011 By Andrei Circhelan

Romania needs to look closer at investors selected for the 1,000 MW Tarnita-Lapustesti hydropower plant that should be finished by 2019, following investments estimated at EUR1,028 billion, Thursday said Tudor Serban, adviser to the economy minister.

The idea for a 1,000-MW power plant in northwestern Romanian county Cluj was launched more than 20 years ago, but "political interests" delay local energy projects, Serban told a conference.

He added the authorities need a more careful selection of investors and better odds to avoid a walkout as such as the ones in Cernavoda nuclear project.

The Economy Ministry plans to sign the contract for construction works in the second half of 2012, while the plant should be partially functional in the second half of 2017.

By 2019, the unit is expected to function at full capacity, namely 1,000 MW, which would result in an output of 1.65 TWh of electricity per year.

State-owned hydropower producer Hidroelectrica will represent 51% of the project company, and authorities are currently expecting binding bids, for the remaining 49% stake, between September and October 2011.

Deloitte Consultanta official Valeriu Binig said a government decision on the investment at Tarnita might be launched within 10 days, adding the funds will come from loans (60%) and from the project company shareholders (40%).