Romgaz’s 430MW gas-fired plant remains in limbo another two weeks

The state-controlled energy company Romgaz gave the contractor another two weeks for settling the issues related to the compilation of the 430MW gas-fired power plant in Iernut, the company says in a note to investors, Economica.net reported.

The company cited changes that in the management of Duro Felguera (one of the contractors) and the new management requesting a new meeting “with a view to continuing negotiations, in order to identify, evaluate and implement a solution to ensure the completion and enforceability of the investment objective, the soonest possible.”

As a result, the completion of the project remains in limbo.

Energy minister Virgil Popescu assured that the power plant would be completed this year no matter what. He said that there exists a plan B and even a plan C for the case no mutual agreement with the contractors is reached.

“We want to complete the Iernut plant this year, so as not to lose the EUR 50 mln from the National Investment Plan,” he said.

The project’s total cost is EUR 269 mln, and Romgaz was given a grant for completing it.

Apparently, minister Popescu was not aware that the European Commission approved an extra six-month for the project.

The head of the National Investment Plan Commission, Vlad Sinca, quoted by Ziarul Financiar, had announced on May 5 that the Government notified the Commission and already received the approval for a 6-month extension for the completion of the project.

(Photo: Romgaz Facebook Page)