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A Chinese company will invest nearly 600 million euros in upgrading Romania power station.

A Chinese company will invest nearly 600 million euros in upgrading power units 3 and 4 of the Mintia power station (western Hunedoara County); the investment comes under a 20-year loan agreement with a 2 pct interest rate, to be initialed by China's National Electric Engineering Company and the Hunedoara Energy Complex, the latter's general manager Daniel Andronache declared on Monday, May 20, Agerpres reported.He explained that the Chinese party is a manufacturer of energy equipment and that it would cover the expense of installing the necessary plant at the Mintia power station; the Romanian party will repay the amount in equal installments set at about one million euros per month.'They come to the site, install the equipment with local workforce they will pay for. After they finish and we take over the work, we will repay them the money, with an interest rate of 2%,' said the director of the Hunedoara Energy Complex.The sides might sign the contract in two months, the financial and technical talks have already wrapped up. Details related to the legal and economic aspects of the contract must now be established, for the deal to meet all legal requirements.The first investment due at the Mintia power station is the construction and installation of a desulphurization installation and the retooling of energy group 4. The project worth 200 - 300 ml euros will start this year.The next stage includes the continuation of the works on the desulphurisation installation for energy group 3, the development of a methane gas power generation system and a network of micro hydropower plants.'We will build the first micro hydro-power plant and will next develop a hydro-power production chain allowing us to reach an electricity production cost between 35 and 40 euros per MWh; with it, we will be able to hit the European market to sell energy. The first micro hydro-power plant will be on the Mures river, using the existing dam at Mintia,' added Daniel Andronache.According to him, the construction and setting in place of the desulphurisation installations will be completed by 2016. This is a priority investment, because the objective would be breaching EU environmental provisions without such equipment and the power plant would have trouble functioning.The current daily energy output of the Hunedoara Energy Complexis 410 MW, of which the Mintia power station produces 300 MW and the Paroseni power station the rest.bne
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Publication:Balkan Business News
Date:May 22, 2013
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