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CE Oltenia and China Huadian signed the agreement of construction of the new energy group in Rovinari
The representatives of the Energy Complex Oltenia and those of China Huadian Engineering signed on Friday the agreement on the basis of which they set up a company, a joint venture for the construction of a new energy group of 500 MW to the Rovinari thermal power station, an investment of almost one billion dollars.
The agreement of setting up for this joint venture Romanian-Chinese of IPP type (Independent Power Producer) was signed at the headquarters of the government by the chairman of the CE Oltenia Laurentiu Dan Ciurel, and the chairman of China Huadian Engineering Yang Yong in the presence of premier Victor Ponta and the minister of economy Constantin Nita.
The chairman of China Huadian Engineering Yang Yong showed that the company he manages will be the main entrepreneur and investor, and the purpose is to make a quality project. ‘We will build this project in the shortest period of time, at superior quality, to make an energy basis of superior quality in Romania’ the Chinese official said.He added that China Huadian Engineering is interested by other energy projects and will take place in the future for the new projects in the domain in Romania.
In his turn, the minister of economy Constantin Nita showed that, in spite of the sceptical opinions with regards to the economic projects with China, these ‘ turn alive’ . ‘There were many who did not trust the projects we have announced with the Chinese companies, but here it is, they come to life’ Nita said.
Premier Ponta showed that the investments in energy are essential for the growth of Romanian economy.
‘For Romania and for the Romanian economy, which is the third year of growth, especially healthy growth in the sense of industrial production and exports , the prices to energy are essential. The fact that the total bankruptcy of the hydro production, thermal in 2012 when everything went on renewable, which meant double and triple prices, the fact that in two years and a half we dropped the price for the end user and we have predictability and competitiveness is an essential thing. But, as in any domain, if you don’t invest, such things do not go’ Ponta said.
He added that all the big four projects agreed with the Chinese investors, in Rovinari, Tarnita, Mintia and the groups 3 and 4 in Cernavoda mean investment of 7 billion dollars and will contribute to making Romania into an energy exporter in the region.
‘ On medium and long term, 15-20 years, Romania has assured the production not only for the domestic market, but the capacity of export at least in the region (….) we are surely the most competitive and big producer of electricity and so we have to stay in the years to come’ the prime-minister said.
He added that at present there is no investment in transport infrastructure, but that Transelectrica will invest everything they accumulated in transport infrastructure, the absolute priority being connection to the Republic of Moldova and then with the countries in the Balkans which need energy.
The Chinese company was selected to invest following an international bid developed in May 2012. Another bidder in the bid was the Japanese company Marubeni Corporation.
The new thermal power station will function on the basis of coal and will be built on the premises of two energy blocks of the CE Rovinari, at present not used. The project will be developed by a joint venture, where the foreign investor could own the majority of shares.
The construction of such a thermal power station last between three and three years and a half
According to CE Oltenia, the unit will be equipped with modern technology, so that the price for electricity production will be among the smallest in all thermanl power stations in Romania.
The state company China Huadian Engineering which is part of the group China Huadian Corporation has as main domains of activity the production of heavy equipment, technology of water treatment and environment protection, renewable energy, electrical power stations construction, research and development of high technology products.
The operations of the group China Huadian Corporation include energy production, thermal power services, the development of energy from primary sources, as well as coal and other technological services for the energy domain.
The corporation has business in several states among which Russia, Vietnam, Indonesia or Saudi Arabia, and China Huadian Engineering made 212 electrical power stations in China, Indonesia, Malaesia, Cambodgia with works in Turkey.
China Huadian was set up in 2002 by the Chinese state together with other four corporations. Together with the five energy producers control 45% of the installed energy capacity of China, according to the American publication Forbes.
The Rovinari CE is owned by the state, through the ministry of economy.