Monday, November 12, 2007

ČEZ wins bid to expand nuclear plant in Romania

Prague, Nov 9 (CTK) - Czech state-run power producer CEZ said Friday it would take part in the construction and operation of the third and fourth units of the Cernavoda nuclear power station in Romania.

CEZ spokeswoman Eva Novakova said the company had picked Romanian state-run company Societatea Nationala Nuclearelectrica (SNN) as one of its partners in the tender. The project is worth EUR2.2 billion (Kc60bn).

Talks on the contract should begin in the last decade of November and should last several months. A new joint venture with SNN will complete two units with installed output of 720 megawatts.

Romania wants to launch the power station in 2014-2015. The Romanian cabinet decided to complete the third and fourth units of the power station in October 2006.

SNN said in a press release Belgium's Electrabel, Italy's Enel, Spain's Iberdrola, Germany's RWE and a Romanian unit of ArcelorMittal would also take part in the project.

Cernavoda is the only nuclear power station in Romania. Both units that are in operation have gross installed output of 700 megawatts.

The launch of the two new units should double the share of nuclear power in total power output in Romania to 35 percent.

CEZ has been active in Romania since 2005, when it bought a majority stake in power distributor Electrica Oltenia. This year, CEZ has registered for a tender to modernise a 535-megawatt power station and build new units in Galati, and for a tender to build a new 400-500-MW gas- or coal-fired unit in Borzesti.

CEZ is the largest Central European power producer and the most profitable Czech company. The state owns two-thirds of its shares.

In 2006, CEZ made consolidated net profits worth Kc28.8 billion. This year, its managers expect to raise net profits to Kc38 billion.

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