Romanian energy producer signs EUR 360 mln contract with Polish group

Local energy producer CET Govora, which is under insolvency, and Polish group Ciech Soda have concluded a ten-year contract with a total value of EUR 360 million. Based on this contract, CET Govora will provide industrial steam to Ciech's soda ash factory in Govora and both companies will be able to continue their operations. Moreover, the contract covers the operating costs of CET Govora and guarantees that there will be no problems in providing heat and hot water in Ramnicu Valcea, Baile Olanesti and Calimanesti-Caciulata, according to Euro Insol, the judicial administrator of CET Govora. Remus Borza, who manages Euro Insol, terminated the contract CET Govora had with Ciech Soda at the beginning of August. He motivated his decision saying that the energy producer was delivering industrial steam at a price below the production costs. Euro Insol has managed to obtain a price increase of over 35% for the industrial steam provided to the soda ash producer, according to the company. The price will apply for the first two years of the contract. Starting 2019, the price will include a formula that includes the production costs recorded by Govora. editor@romania-insider.com