Cernavoda Nuclear Reactors 3, 4 On Schedule, Despite Crisis

The project to build the 3rd and the 4th reactors of Romania"s Cernavoda Nuclear Plant will not be affected by the international financial crisis and there are no reasons to have any delay. Nuclearelectrica CEO Teodor Chirica told a conference organized by Forum Invest that the cost of building the two reactors could decrease in line with the general downward trend of construction material prices. "However, the cost of financing could increase. Nonetheless, I still don"t anticipate any major problems because we will not set up the project company before the beginning of next year, while financing does not need to be contracted before end-2009 or the beginning of 2020. Most analysts believe that the effects of the crisis will attenuate by 2010," said Chirica. Chirica stressed that all of the six investors selected for the project company had attended the negotiations and reported no particular problems regarding the disbursement of their respective share of the capital. Moreover, the Romanian State will hold 51% of the shares and therefore provide half of the funds required for the project. According to the Government decision modifying the strategy on investor selection, the respective 2 billion EUR (half of the total) will come from the National Development Fund (800 million EUR), already existing assets provided in kind (350 million EUR), budget funds for heavy water production (350 million EUR), State-guaranteed loans (220 million EUR), Nuclearelectrica funds (120 million EUR) and stock exchange listing (100 million EUR). Some 100 million EUR stands for the heavy water produced until June 2008.

According to Chirica, the listing has been postponed because of the turbulence on capital markets, but all other funds to be provided by the State were secure.