China General Nuclear Power Corporation submitted the only offer in the first phase of the selection procedure for the investor who will build units 3 and 4 of the Cernavoda nuclear power plant, Nuclearelectrica has announced. This is one of the largest energy projects in Romania, with an estimated cost of EUR 5 billion.

State owned electricity producer Nuclearelectrica, which operates units 1 and 2 of the Cernavoda power plant, will be involved in the project as a minority shareholder.

Following the analysis performed by the negotiation commission, the board of directors of Nuclearelectrica and the interministerial commission, the company China General Nuclear Power Corporation was declared a qualified investor, according to Nuclearelectrica.

“The qualified investor fully complies with the requirements provided in the qualification documentation from the point of view of the technical and nuclear safety standards and also from the point of view of financing capability for such a project, fact which is essential for the development of a new nuclear project. The qualified investor has operation expertise at a capacity factor which emphasizes performance in operation, construction and development of investment projects with a high level of complexity” said Daniela Lulache, Nuclearelectrica’s CEO.

China Nuclear Power Engineering Company (CNPEC) in August signed a binding and exclusive cooperation agreement with Canadian group Candu Energy for the construction of CANDU Units 3 and 4 at the Cernavoda Nuclear Power Plant in Romania. Candu also supplied the technology for Units 1 and 2.

China General Nuclear Power Corporation (CGN) was established in 1994 and is currently the largest nuclear energy producer in China, with 11 units in operation at the end of August 2014, with an installed capacity of 11,620 MW. Another 15,000 MW will be added after the commissioning of 13 additional nuclear units which are, at present, under construction.

The company’s turnover at the end of 2013 was EUR 4.25 billion and the net asset value was EUR 37.49 billion.

Nuclearelectrica (BVB ticker: SNN) is one of Romania's largest electricity producers, with a turnover of EUR 437 million in 2013. The company was listed on the Bucharest Stock Exchange last year and currently has a market capitalization of almost EUR 500 million.

Andrei Chirileasa, andrei@romania-insider.com