RWE, GDF SUEZ and Iberdrola back out of Cernavodă project

RWE (Germany), GDF SUEZ (French-Belgian group) and Iberdrola (Spain) have abandoned the 4 billion-euro project entailing the development of reactors 3 and 4 of the Cernavodă nuclear power plant, after last year saw the Czechs at CEZ withdraw from Romania’s biggest investment project in the past 20 years. Although the joint decision of the three investors was announced on RWE’s website, officials of the Ministry of Economy say they have not received any official notification as to the withdrawal of any of the companies. Market sources say the departure of the last two remaining investors aside from the Romanian state (Italy’s Enel and Arcelor Mittal Romania) is certain and imminent.
“Since 2008, GDF SUEZ, RWE and Iberdrola, among other international investors, have been partners with SN Nuclearelectrica for the development of units 3 and 4 of the Cernavodă power plant. Economic and market uncertainties surrounding this project, related for the most part to the present financial crisis, are not reconcilable now with the capital requirements of a new nuclear power project. Consequently, pursuant to their respective investment policies, GDF SUEZ, RWE and Iberdrola have decided not to continue their participation in the project,” reads a joint press statement of the three groups, which, however, specifies that the decision has nothing to do with the technical quality of the project, which also recently received the approval of the European Commission.