The completion of the 430 MW gas-fired power plant at Iernut by Spanish contractor Duro Felguera for Romgaz, expected for this summer, is at risk as the contractor faces insolvency and the payment of EUR 400 million fines related to a past contract in Algeria, according to Profit.ro. The power plant should have been completed in 2020.

The Spanish contractor has been seeking protection from creditors since December last year, with the aim of starting negotiations to reach an agreement on a restructuring plan.

Minister of energy Sebastian Burduja announced that in case the Spanish contractor can no longer operate, the state will make direct payments to subcontractors.

“Today, the Iernut thermal power plant is 97% complete, which is good progress but still insufficient. Only 3% separates us from commissioning. So little and yet so challenging,” minister Burduja said.

iulian@romania-insider.com

(Photo source: Facebook/Sebastian Burduja)