Romgaz to Finish Iernut Power Plant Next Year, Four-Year Delay

Romgaz will complete the Iernut plant by December 31, 2024, the company announced at the Bucharest Stock Exchange, marking a four-year delay in this project. The date of completion of the investment, confirmed by its commissioning, cannot exceed December 31, 2024“, states Romgaz.

The announcement to investors comes in the context in which the company received funds through the National Investment Plan for this project, funds that it risks losing if it does not meet this deadline.

In 2016, Romgaz concluded with the association formed by Duro Felguera and Romelectro the contract regarding the realization of the project of a new combined cycle plant with gas turbines from Iernut, of 430 MW, which provided for the design, delivery of equipment, execution of works and commissioning for the amount of 268 million euros plus VAT.

The new power plant, on the site of the old one, of which only one group is still operating, should have come into operation in 2020.

In 2019, the project was blocked, as the builders requested an increase in the amount, and Romgaz did not agree and subsequently terminated the contract. This contract was controversial from the start.

Duro Felguera was being investigated in Spain in a corruption case, which extended to Venezuela. Romelectro was a company subscribed to large contracts with state energy companies. Meanwhile, the company went into insolvency last year.

The Romgaz evaluation commission told, in 2016, after signing the contract, that it was not aware of the fact that Duro Felguera was being investigated in Spain for money laundering and bribery.

At the beginning of this year, Romgaz signed a new contract for the resumption of the works with the same Spanish company, Duro Felguera, on the grounds that the works are more than 90% ready, and choosing another builder would mean further delays.

For next year, the power plant project receives 90 million lei from the state budget, the Minister of Energy, Sebastian Burduja, showed a week ago.

delayDuro FelgueraIernutpower plantromgaz
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