October 9 (SeeNews) - The Romanian and US authorities will sign cooperation and financing agreements for an $8 billion (6.8 billion euro) project for the modernisation of the Cernavoda nuclear power plant (NPP) unit 1 and the construction of units 3 and 4, the U.S. ambassador in Romania Adrian Zuckerman said.
The project will be a paradigm for future Romanian- American economic and energy development projects, U.S. ambassador Adrian Zuckerman said in a live-streamed session during the Aspen Institute’s Bucharest Forum on Thursday.
Romania's energy minister Virgil Popescu is meeting on Friday with Department of Energy secretary Dan Brouillette to sign an intergovernmental cooperation agreement for the refurbishment of one nuclear reactor and the building of two new reactors at the Cernavoda nuclear facility in Romania, the ambassador added.
Popescu will also meet with the president and chairwoman of Exim Bank, Kimberley Reed, to execute a memorandum of understanding for the financing of the Cernavoda nuclear project and other projects in Romania.
"The financing package is the largest financing package ever received by Romania to date and is indicative of the confidence that the United States has in its longstanding partner and Ally. The United States – Romania bilateral relationship has never been stronger," Zuckerman added.
Operated by Nuclearelectrica [BSE:SNN], the Cernavoda power plant, located in southeastern Romania, has two reactors of 700 megawatts each, which meet roughly a fifth of the country's electricity needs. The energy ministry owns a 82.49% stake in Nuclearelectrica.
In July, Romania's prime minister Ludovic Orban said that the government plans to invest up to 9 billion euro in the modernisation of the Cernavoda nuclear power plant unit 1 and the construction of units 3 and 4 by 2030. The government's objective is to complete the construction of units 3 and 4 by 2030, Orban said at the time, adding that the financing scheme for the project is still being drafted.
In June, Nuclearelectrica said that its shareholders have decided to terminate all deals and negotiations with two Chinese companies for the construction of Units 3 and 4 at the plant, complying with an energy ministry request.
In May 2019, Nuclearelectrica signed a preliminary agreement with China General Nuclear Power Corporation (CGN) and CGN Central and Eastern Europe Investment (CEERI) to establish a joint project company for the construction of Units 3 and 4 at Cernavoda NPP. The business entity was supposed to be a joint stock company that will exist for at least two years, with CGN holding a stake of 51% and while Nuclearelectrica holding 49%.
Nuclearelectrica shares traded 2.07% higher at 16.74 lei ($4.04/3.73 euro) by 1044 CET on Friday on the Bucharest Stock Exchange. VB.
(1 euro =4.8741 Romanian lei)