New Romanian-Chinese memorandum for power plant

Thermal electricity producer Complexul Energetic Oltenia, which is controlled by the Romanian state, and the state-owned Chinese company China Huadian Engineering plan to form a joint venture in a public-private partnership called Huadian Oltenia Energy, which should build a new energy group with a 600 MW capacity at the Rovinari power plant. The joint venture would borrow over EUR 574 million to carry out its plan, which represents over two thirds of the investment’s total value, which amounts to EUR 847.6 million, reports local Profit.ro. The information is presented in a memorandum approved on September 3 by the Government, as well as in an agreement draft between CE Oltenia and China Huadian on implementing the new project. The Chinese group will have a 91.06% stake in the company, whereas CE Oltenia will hold an 8.94% stake. CE Oltenia will contribute to the joint venture’s capital with various assets such as plots, administrative buildings, and coal deposits, whose value amounts to EUR 18.95 million. Complexul Energetic Oltenia produces up to 30% of Romania’s electricity, in three lignite-powered thermal plants. editor@romania-insider.com