Romania raises to 6.45 bln euro estimated cost of n-plant expansion project

The costs figure excludes value added tax and interest, a project description posted last week on Nuclearelectrica's website indicated. The project is pending approval by Nuclearelectrica's shareholders at a general meeting scheduled for October 26.

The value of the existing Nuclearelectrica assets that will be part of the project is one billion euro. The cost of the two reactors, to be delivered by Canada's SNC Lavalin Nuclear Inc, is nearly 4.8 billion euro. The cost of works and services needed to put the reactors into operation and unexpected expenses are seen at some 650 million euro.

Construction costs for the two reactors were previously projected at some 4.0 billion euro.

Ernst & Young has completed a feasibility study for the project, the documents, which have been posted on Nuclearelectrica's website ahead of the forthcoming shareholders' meeting showed.

Through Nuclearelectrica Romania owns 84.65% of EnergoNuclear, the project company for the construction of the two reactors. Italy’s Enel and ArcelorMittal hold stakes of 9.15% and 6.20%, respectively.

The Romanian government has said it would like to cut its stake in the project to 40%.

Romania's sole nuclear power plant operates two reactors of 700 megawatts each that cover around 18% of domestic electricity consumption. The second pair of reactors is expected to have a similar installed capacity.

($=0.7677 euro)