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China, interested in investing in thermal power plant at Doicesti

The State of China, through the China Huadian Engineering Co Ltd company, could invest in the thermal power plant at Doicesti (southern Romania), chief of Termoelectrica Privatization and International Cooperation Department Stefan Arama told a press conference.

'The company is actually the interface between the investor - the State of China - and the business. Those of Eximbank China have come together with them. This company is a state-owned foreign trade company. They will make a study and, if the results are positive, they will invest,' Stefan Arama explained.

Termoelectrica and the Chinese company negotiated in the period April 13-14, 2011, an understanding memorandum, having as objective the establishment of both the cooperation structure and the concrete cooperation plan. The above-mentioned document was signed on April 14 and came into force after being approved by the Termoelectrica Board.

Arama mentioned that this memorandum did not provide an exclusivity clause, so if a possible investor came up, he could participate in this project.

According to him, Teromoelectrica plans to build a joint venture at Doicesti, in which the investor should own the majority package. The estimated value of the investment stands at 700 million euros, in the conditions in which it is about creating some new capacities of 2x250 MW on coal, equipped with an installation for gas desulphurisation and capture, transport and storage of slag and ash in dense environment.

According to Agerpres, the new company would operate as an independent energy producer on the Romanian energy market.
The project execution works are scheduled to start in March 2012.

According to the Termoelectrica representative, 480 employees work at the power plant at Doicesti at present, out of which 180 are going to be laid off this year.'Until present, the power plant functioning was reduced, close to zero, but the employees did not cease their work, taking into account that the demolition, disassembling and capitalization works on block 7 of the power plant have begun a year ago,' Stefan Arama added.

The investment is estimated at 700 million euro. According to the Economy ministry, by October 2011 a feasibility study will be conducted and the new company will be registered by January 2012 following to obtain the agreement of banks over the financial package by February 2012 and in March 2012 executive works will start.

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