Spanish company Duro Felguera, the leader of the consortium supposed to build the 430MW Iernut power plant for Romanian natural gas company Romgaz, argues that the termination of the contract by the Romanian company "does not comply with the contractual terms and conditions." It also says it "reserves the right to initiate legal action in defense of its interests," according to Ziarul Financiar.

Profit.ro reports that such "legal actions" are already activated because the termination of the contract activates Duro Felguera's court action (initiated in April) aimed at deferring the deadline and preventing the loss of the EUR 25 mln guarantee.

The consortium says that it maintains its desire to complete the complete execution of the works, given the overall project is 94% completed and Duro Felguera completed 98% of its part.

At the end of last week, Romgaz notified the investors about the termination of the contract invoking "the non-completion in time, by the Executor, of the construction works and commissioning." The project should have been commissioned in early 2020. 

iulian@romania-insider.com

(Photo source: Facebook/Romgaz)