Sunday, September 4, 2011

South-Korea’s BKB May Invest in Romania’s Nuclear Reactors

BKB Co. Ltd., a South-Korean company, is interested in investing inRomania’s planned two new nuclear reactors, the Economy Ministrysaid.

BKB sent a letter of intent to Minister Ion Ariton expressing its “firm interest” in acquiring a stake in EnergoNuclear SA, the project-company created to handle the construction of the third and fourth nuclear reactors at Romania’s Cernavoda plant, according to the ministry’s e-mailed statement today.

Romania said recently it wants to continue its nuclear power expansion after leaking radiation at the Fukushima nuclear plant in Japan following a devastating earthquake and tsunami on March 11 prompted governments such as Germany to rethink their nuclear expansion programs.

A group led by BKB plans to visit Romania “to hold technical discussions with our specialists in order to materialize their intentions,” the Bucharest-based ministry said in the statement.

The government is currently seeking investors for the two nuclear reactors estimated at 4 billion euros ($5.7 billion), after CEZ AS, GDF Suez (GSZ) SA, RWE AG and Iberdrola SA pulled out in January, citing unclear regulations and doubts about future power demand. Italy’s Enel SpA and steelmaker ArcelorMittal are still part of the project.

The east European country plans to lower its majority stake in the project to 40 percent as it seeks to split the financing costs with investors.

To contact the reporter on this story: Andra Timu in Bucharest at atimu@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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