NGO: Romanian consumers will be paying for state aid in Cernavoda project

Newsroom 31/05/2016 | 18:31

The end consumers of energy will be the ones paying for the state aid promised by the government to China General Nuclear Power Corporation for bringing nuclear units 3 and 4 in Cernavoda into function, stated Lavinia Andrei, Terra Mileniul III NGO president.

According to our information, the Chinese company that will build the reactors has asked state guarantees for an internal rate of return of 15 percent. The 3 and 4 reactors project was valued at EUR 6.5 billion under an internal rate of return of 11.3 percent, so the final price will be much higher,” she explained.

According to Nuclearelectrica CEO, Daniela Lulache, the Romanian government has sent a letter to the Chinese corporation confirming the project as one of strategic importance and offering various state aid schemes to support it. These include contracts for difference, a mechanism through which the state provides energy takeover at a price which covers investment and production costs, a series of fiscal facilities and state guarantees for the project financing.

All these schemes of state aid will be paid for by consumers in Romania, by the citizens, of our pockets. We take the losses and the investor remains with the profit,” Andrei added.

Romatom sent a press release on Monday stating that the project of reactors 3 and 4 at Cernavoda will create approximately 16,000 jobs in the domestic industry, but the president of Terra Milleniul III argues that there is no study to lead to this conclusion.

However, Lulache, showed, these mechanisms will have to be approved by the European Commission first.

Obviously, all these mechanisms will be provided under certain conditions. For example, for implementing the mechanism of contracts for difference, we are aware that you have to go through a process of negotiation and analysis with the European Commission and we need this mechanism to handle several tests, including those of state aid. And then such an order is subject to the successful completion of these steps,” the Nuclearelectrica representative said.

She added that Energonuclear, the company that managed the project up to this point, will merge with the new project company.

On November 9, 2015, representatives of Nuclearelectrica and China General Nuclear Power Corporation signed the Memorandum of Understanding on the development, construction, operation and decommissioning of units 3 and 4 of the Cernavoda nuclear power plant.

Natalia Martian

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