Czech CEZ Pulls out of 400 MW Power Station Project in Romania over Unforeseen Costs

BUCHAREST (Romania), July 14 (SeeNews) – Czech power group CEZ said it has decided to withdraw from a 400 megawatt (MW) gas-fired power plant project in Romania due to unforeseen costs.

“This decision was based on several technical parameters and also on some strong financial aspects,” CEZ Romania said in a statement on its website on Tuesday.

“The pre-feasibility study showed that the [Electrocentrale Galati] project cannot be built, subject to additional important and unexpected costs related to the grid and gas corridors and also removal of some of the assets owned currently by [state-owned power plant] CET Galati,” CEZ added.

The project, planned to be developed in Galati, in the country's southeast, in partnership with state-owned power group Termoelectrica, is worth 400 million euro ($508 million), local media reported.

CEZ also said it has decided to concentrate its resources on the local 600 MW Fantanele/Cogealac wind park project currently in progress and on its participation in EnergoNuclear, the company that will build the third and fourth units at Romania’s sole nuclear power plant at Cernavoda.

CEZ bought the Fantanele/Cogealac property in 2008 and plans to develop it into the largest onshore wind generation complex in Europe at a cost of 1.1 billion euro.

($ = 0.7872 euro)

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