WITHIN TWO MONTHS, "Termoelectrica" to attract EUR 1 billion in private investments

• E.ON" and "Enel" will have to decide on investing near EUR 1 billion for the creation of a new 800 MW coal-based power plant

• By the end of the year, "CEZ" and "Electrabel" will have to approve the investments in Galaţi and Borzeşti

Last year, "Termoelectrica" became the Cinderella of Romania"s energy sector, by concluding three partnerships with private investors for the development of new cutting edge plants. The total investments will exceed EUR 2 billion. Officials of "Termoelectrica" said that the at the moment, the project of Brăila is the most advanced. "We estimate that the decision on the investments will be made by the end of Q3 2009", officials of "Termoelectrica" said.

"E.ON Kraftwerke GmbH" and "Enel SpA" consortium will only make the decision after the feasibility studies and evaluation reports are completed. An independent evaluation report has been drawn up and is currently being reviewed for the Brăila and the feasibility study is currently ongoing. The negotiations on the Shareholder Agreement and the Articles of Incorporation of the Private Public Partnership company (Shareholder Agreement and Articles of Incorporation) are under way, management of "Termoelectrica" said. This year, "E.ON" and "Enel" will have to take over the management of the "Termoelectrica" plant in Brăila. The two companies won the call for tenders for the construction of a new 800 MW coal-based unit, expected to have an initial cost of approximately EUR 1 billion.

According to the quoted source, in the case of the Galaţi and Borzeşti projects, the private investors may reach a decision by the end of Q4 2009. The Galaţi project is currently in the assessment report evaluation stage, the reference terms were agreed upon and the consultant which will draw up the feasibility study has been selected. Negotiations for the shareholders" agreement are also underway. "CEZ" won the auction for the construction of the plant in Gala i, and it will build a 400 MW natural gas-based unit, which is expected to cost several hundred million Euros.

The feasibility study and the assessment report are underway for the Borzeşti unit, and the negotiations for the shareholders" agreement are set to begin soon. The winner of the auction for this project is "Electrabel" Belgia. The new energy unit will have an installed power of 400 - 500 MW and the investment will require a EUR 500 million investment.

"Termoelectrica" is currently drawing up a feasibility study aimed at reviewing the opportunity of building a new more effective unit in Valea Jiului, either at the Deva plant, or at the electrothermal power plant (CET) Paroşeni. The same study will also review the opportunity of building a new unit at the Doiceşti plant. The study is funded through an EBRD grant. "We estimate that the study will be completed by the end of this year, and we can begin attracting investors", officials of "Termoelectrica" said. The Doiceşti plant already had a call for tenders from private investors, last autumn, which was later invalidated.