Aluminium company Vimetco could receive a EUR 207 million loan from the European Bank for Construction and Development (EBRD) to build a new gas-fired cogeneration power plant in Tulcea, Romania. If Vimetco Power Romania gets the EBRD loan, which is pending final review and would cover 75 percent of the project costs, it would become the first project finance transaction in private conventional power generation in Romania. The EBRD board is scheduled to meet in May 2012, when the results of the final review are expected.

If the project is approved the 250 MWe/195 MWth power plant should be built and commissioned between 2012 and 2014. The power and the heat produced by the EUR 276 million plant will be sold on the Romanian market, as well as cover part of the needs of the Vimetco group in Romania.

The project could deliver electricity on both the day ahead and the bilateral contract markets of the Romanian energy exchange, according to the EBRD. It would also lead to more widespread private ownership in the sector. Excepting the 860 MW gas-fired power plant built by OMV Petrom in Brazi, and several recently constructed renewable energy projects, the power generation sector in Romania is state-owned.

In Romania, Vimetco group owns Alro SA - one of the largest industrial Romanian companies, Alum SA - the largest aluminum smelter in Southeast Europe, an aluminum refinery located in Tulcea and Vimetco Extrusion - a company producing aluminum extruded profiles.

editor@romania-insider.com