Hunedoara Energy Complex expects an investor with USD 700mln for a new thermal power plant

Hunedoara Energy Complex (CEH) wants to build a new gas-fired energy group of 400MW and is expecting to find within a month an investor interested to fund the project entirely. The new energy group, planned to be built in Mintia, would cost about USD 700mln. The investment would be carried out by a joint venture in which CEH would come with the in-kind contribution, representing assets of the complex, and the investor selected with cash to fully ensure the construction costs of the new group. The same pattern was followed at Oltenia Energy Complex, where a new group will be built, of 600MW, on the platform of Rovinari thermal power plant, for EUR 1bn. The investor to fund the construction is China Huadian Group, which will also hold the majority stake in the project company. Moreover, the Chinese are also interested in the new group of 400MW at Hunedoara. In September last year, former secretary of state at the Ministry of Economy Rodin Traicu said about the Chinese giant China Coal Group that it was interested to invest in Mintia and modernize pit coal extraction in Jiu Valley. Prequalification documents of potential investors can be submitted until March 12^th, at 9:00 o’clock. They will be opened at 10:00 o’clock. The tender book can be acquired free of charge from company’s headquarters in Vulcan, until March 11^th. Companies interested to submit prequalification documents must have had an annual average turnover of EUR 800mln in the past three years, built in the past 5 years at least one energy group of 400MW and have under operation power plants with an installed power of at least 600MW. Hunedoara Energy Complex is a joint stock company established following the merger of companies Electrocentrale Deva and Electrocentrale Paroseni. The company was registered with the Trade Register on November 1^st 2012. Its share capital is RON 203,396,080, being entirely owned by the Romanian state, through the Ministry of Economy. The company provides about 5% of Romania’s electricity production, having an installed power of 1,435MW. According to a draft Government Decision, the Complex will be privatized by selling a stake of newly issued shares through a public offering of share capital increase by 105% compared with the existing capital.