Chinese company to hold 51 per cent of the joint-stock company to build Units 3 and 4 of Cernavoda nuclear plant

Romania's state-owned Nuclearelectrica Company (SNN) will contribute two million euros to get 49 percent of the joint-stock company (JVCo) that will build Units 3 and 4 of the nuclear power plant in Cernavoda; China General Nuclear Power Corporation (CGN) will have 51pct, according to a Memorandum of Understanding on the development, building, operation and decommissioning these units.

2015-09-28 17:21:05

SNN′s extraordinary general meeting should approve the memorandum on October 22.

The document stipulates that the CGN participation in the share capital of the joint-stock company will represent at least 51pct, and SNN participation will not go below 30pct. At the same time, the Chinese investor will take over the value of the SNN investment in its subsidiary EnergoNuclear (EN) through a merger by absorption. Approximately at the same time with the merger, the share capital of JVCo will be increased by cash contribution made by CGN immediately after the effective date of the merger, in order to restore the structure of JVCo shares that existed prior to the merger (49pct SNN and 51pct CGN) .

Each party has the right to terminate the memorandum of understanding without any compensation, through a simple written notice to the other party, if no agreement is reached on investment documents within 6 months since the signing.

The strategy for the development of Units 3 and 4 of Cernavoda nuclear power plant based on CANDU 6 technology by SNN and a private investor was approved by the Government on July 31, 2014.

This spring, Minister of Energy Andrei Gerea said that the investment agreement with the Chinese company may be finalized by the year′s end.

The project for the two new reactors was evaluated at 6.45 billion euros last October, but the feasibility study that called for that amount will be revised.