Cernavoda II needs another $700m

The second unit of Cernavoda nuclear plant, one of the most important infrastructure works carried by the state over the past years, will become operational in 2004, provided the works are concluded in compliance with the contract’s deadline.

Representatives of the National Company Nuclearelectrica, (SNN), Atomic Energy of Canada (AECL) and Ansaldo Italy, last weekend signed at Victoria Palace the commercial contract for the works finalisation and Cernavoda NP II unit opening. AECL Canada and Ansaldo also finalised the works at Cernavoda first unit.

The total cost of Cernavoda II unit works is estimated to stand at 689 million dollars. If investments implemented before 1989 are added, the total cost exceeds 1 billion dollars. This unit will provide 8% of Romania’s power output.

One 700-800 MWh reactor costs between 1.3-1.5 billion dollars on the international market and the investment’s value depends on the reactor’s type or of its location, which is usually settled near a water source, as the reactor is a huge water consumer, and close to suitable infrastructure.

“The Romanian party will invest 380 million dollars in Cernavoda II unit. We are currently negotiating the possibility to get a loan worth 150-200 million dollars from the Vienna-based Nuclear Power European Agency (EURATOM), but we are quite unlikely to get it by 2003, due to the procedures preceding the loan granting,” Constantin Valeca, Research Delegate minister within the Education and Research Ministry, told Ziarul Financiar.

As for the foreign funds to be invested in this unit, an auction attended by companies such as Siemens (Germany), Empresarios Grupados (Argentina) and Kepko (South Korea) will be organised. These will invest by means of credit-supplier system, Valeca says.

“After the investment quota of the companies winning the auction is settled, the rest of the financing will be provided by the Italian and Canadian partners. According to some estimates, the investment of the Canadian partner will be 2.5 times higher that Ansaldo’s,” the minister said.

A directorate made up of three members (a Romanian, a Canadian and an Italian) will manage and supervise the works and the financing stages at Cernavoda II unit, while the Romanian director will have veto right when certain decisions are to be made, Valeca specified.

According to the contract signed between the three companies, works are scheduled to finalise within 54 months since the document is enforced, while the reactor is due to become operational in the 49th month.