Shareholders of Romanian electricity producer Nuclearelectrica (BVB ticker: SNN) recently approved the strategy for the continuation of Cernavoda Nuclear Power Plant Units 3 and 4 project through the organization of a competitive selection procedure of a private investor, the company announced on Monday.

The Romanian state holds a 81.3% stake in Nuclearelectrica and investment fund Fondul Proprietatea (FP) has 9.7% of the shares, with the remaining 9% held by private investors on the Bucharest Stock Exchange.

Nuclearelectrica’s shareholders also voted for the company’s participation within a “Green/Brown Field” type project, through the establishment of an IPP (Independent Power Producer) type company, to which Nuclearelectrica will contribute with movable and immovable assets not exceeding EUR 2 million. The selected private investor will also contribute in cash to the new company. The private investor will hold at least 51% of the project and Nuclearelectrica will hold no more than 49%.

The auction for attracting a private investor for the project to build the units 3 and 4 of the nuclear power plant in Cernavoda could be launched this week, according to sources quoted by local newspaper Bursa. The estimated value of the investment is EUR 5 billion, shows recent data published by the company.

The project should be developed using Canadian CANDU technology. Canadian group Candu Energy recently signed a binding and exclusive cooperation agreement with China Nuclear Power Engineering Company (CNPEC) for the construction of CANDU Units 3 and 4 at the Cernavoda Nuclear Power Plant.

Nuclearelectrica produces about 20% of Romania’s electricity. The company is listed on the Bucharest Stock Exchange and has a market capitalization of EUR 490 million.

Andrei Chirileasa, andrei@romania-insider.com