July 29, 2014

Japanese group Marubeni to build new gas power plant in Romania

Japanese group Marubeni Corporation recently signed a contract with Romanian state owned electricity producer Electrocentrale Bucuresti (ELCEN) to build a 250 MW gas power plant in Fantanele, Mures County, in the Transylvania region of Romania. The total investment will stay at about EUR 170 million.

Marubeni will own 90 percent in the new company and will invest some EUR 153 million, and ELCEN will hold a 10 percent stake. The new company,  called Fantanele Gas Power, will operate as an independent energy producer.

“Fantanele is our first infrastructure investment project in Romania and we are delighted to have reached this development phase which is part of our long term strategy for a more significant contribution in Central and Eastern Europe,” said Hiroshi Tachigami, president of Marubeni Europower.

“Marubeni Europower aims to extend its presence in Romania and this pilot project can demonstrate the stability, safety and functionality of an energy market that aims to become an independent energetic system,” he added.

Gabriel Ignat, ELCEN’s general manager, said that this project will be beneficial for the National Energetic System, as this new plant will be able to balance and even compensate for the renewable energy production.

The gas power plant will be built on the location of the former Fantanele thermal power plant, which has been dismantled. ELCEN will contribute with the land and the existing buildings on site, and Marubeni will directly finance 30 percent of the investment, which is EUR 51 million, by direct contribution to the capital of the new company, while the rest of the money will come from bank loans.

The construction of the new power plant will take 18 months and its commercial operations whould start in 2017.

Romanian law firm Tuca Zbarcea & Asociatii acted as legal counsel for Marubeni Corporation in setting up this project.

Source: romania-insider.com