Euratom loan for Cernavoda's Reactor II

Nuclearelectrica is about to take an approximately 225 million euro loan from the European Atomic Energy Agency (Euratom) in order to complete the works on Unit II of the Cernavoda nuclear power plant.

The company had previously contracted another loan worth more than 400 million euros for the same purpose last year.

“Nuclearelectrica will contract an about 225 million euro State-secured loan from Euratom by yearend,” sources close to the talks told Ziarul Financiar.

The funding from the European Union agency means EU’s support for building the second reactor is becoming official, considering several EU states have dropped nuclear plant construction plans over the last few years.

Nuclearelectrica sources confirmed the amount of the loan. “We had initially applied for the maximum amount as early as 1999, but reverted to a reasonable value in the meantime, so that we are now talking about contracting a 223-225 million euro Euratom loan.” A document of Euratom, an EU agency funding nuclear energy projects, shows Romania proposed obtaining a 375 million euro loan to cover half of the project value.

To finance the project, which is already more than 43% done, Nuclearelectrica in December 2002 contracted an over 400 million euro State-secured loan from a consortium comprising Societe Generale, Banca Romana pentru Dezvoltare (Romanian Development Bank – BRD) and Credit Lyonnais. The loan is to reach some 430 million euros, once the contribution of the US Eximbank to it is approved. Societe Generale will come up with approximately 350 million euros, BRD with 25 million euros, while Credit Lyonnais with some 9 million euros, which money will be used to import the necessary equipment for the Cernavoda plant. Nuclearelectrica will repay the loan in 15 years, as soon as the 4-year grace period is over, using the revenue derived from the sale of Cernavoda-produced energy. The completion of the works on Cernavoda’s Unit II is scheduled for 2006, while the first energy deliveries to consumers are set to commence in 2007.
adrian.mirsanu@zf.ro