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Nuclearelectrica will pay almost 120 million dollars to the company General Electric for the maintenance of unit 1 and 2 in Cernavoda
Nuclearelectrica signed with General Electric Global Services GmbH/GE Global Parts&Products GmbH an agreement for the maintenance and repairs of some of the parts of unit 1 and 2 CNE Cernavoda, worth almost 120 million dollars, according to a report sent on Tuesday to the Stock Exchange Bucuresti. The agreement last for eight years.
‘The National Company Nuclearelectrica SA (SNN) informs the shareholders and investors on the signing of an agreement with the duration of 8 years with General Electric Global Services GmybH/GE Global Parts &Products GmbH whose object is complete services of maintenance and repairs for the turbine, the electric generator,valves, auxiliary systems belonging to unit 1 and 2 CNE Cernavoda worth 119,983,937.22 USD, value which surpasses 10% of the turnover of the company, at the level of the annual financial balances for 2018, reason for which, in accordance with the provisions of art.234, i) of the Regulation ASF no.5/2018 SNN has the obligation to report such contracts’ the document says.
Nuclearelectrica is under the authority of the ministry of energy, the state owning 82.4959% of the shares, Fondul Proprietatea – 9.0903% and other shareholders – 8.4138% after listing on the stock exchange of the company in 2013.
The main domains of activity of SNN is the production of electricity, thermal energy and nuclear fuel.
The development of Cernavoda's 3rd and 4th reactors is estimated to cost EUR 5 billion, and authorities are currently analyzing what sort of state aid they can give investors. The support may include the option of selling energy outside the market, according to a document entitled "Revised Strategy for the continuation of the project of Units 3 and 4 in Cernavoda" posted on the Nuclearelectrica's website.
There are two options currently envisaged: i. the sale in advance of the electricity produced by the new reactors, on the market or under deals outside the market and ii. Contracts for Differences (CfD), a guarantee provided by the state (through a special body) under which the power producers receives subsidies in case the market price falls under a pre-agreed level (the Strike Price). Above the strike Price, the recipient of CfD pays back the differential to the state.