RO Govt. prolongs until end-2023 financing of Iernut power plant

The Government of Romania prolonged to the end of 2023 the deadline for the completion of the projects financed from the sale of the CO2 certificates distributed for free to Romania, with a view of allowing the completion of state-controlled gas company Romgaz MW gas-fired plant at Iernut, Profit.ro reported.

Romgaz is seeking to complete the project with the same contractors that failed to deliver it by the deadline.

The eligibility term for non-reimbursable financing of the expenses with the construction of the Iernut plant was extended until January 31, 2024, and the validity term of the non-reimbursable financing contract - until June 30, 2024.

The total non-reimbursable financing for Iernut amounts to almost RON 321 mln (EUR 64 mln at the current exchange rate).

The contract for the construction of the new plant was concluded in 2016, at a value of EUR 268 mln plus VAT.

The Government adopted this spring an emergency ordinance amending the public procurement legislation to allow the completion with the same contractors of the project of the gas-fired plant from Iernut, blocked after Romgaz terminated the contract with the consortium of Duro Felguera-Romelectro.

The Government also amended legislation to allow the increase of the price paid to the contractors compared to the value inked in the contract signed in 2016.

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