Societatea Nationala Nuclearelectrica S.A. (“SNN”) will subject to the approval of its shareholders, during the Extraordinary General Meeting of Shareholders (“EGMS”) scheduled for 22 August 2014, theStrategy for the continuation of the Cernavoda NPP Units 3 and 4 Project, according to the request of the Department for Energy to amend the agenda of the EGMS.
The Strategy envisages, in the first phase, the unfolding and completion by SNN of a competitive procedure for the selection of a private investor (PI) in order to establish a company, namely a joint-venture, in compliance with art. 50 of Law 137/2002 regarding certain measures to accelerate the privatization process. The company will be established by SNN and one or more private investors. SNN’s investment in EnergoNuclear (EN) will be transferred to the newly established company. The Company is a forerunner of an IPP type company (Independent Power Producer).
In the first stage, the new project company will be established exclusively with cash contributions from SNN and the selected private investor, corresponding to a quota of 49%, respectively 51%. The contribution in cash of SNN will be of maximum 2 million Euro, initially. The minimum share capital of the company will be structured in such a manner as to allow SNN and the Romanian State to fully contribute in cash to the project, plus other initial and subsequent contributions in cash, however, the contribution of the private investor will not represent less that 51%
The Romanian state has the right to make contributions in kind and/or in cash, maintaining the minimum quota of the private investor at 51%.
Taking into account the commitment undertaken by the owner of the CANDU nuclear technology and the Romanian state towards the European Commission, during the analysis of the Project on the basis of article 41 of the EURATOM Treaty, an important request to potential investors is to ensure the capability to construct the Project using CANDU 6 technology and to guarantee the level of nuclear safety committed by the owner of the CANDU 6 technology and the Romanian State during the process of obtaining the opinion of the European Commission.
The new Strategy for the continuation of Cernavoda NPP Units 3 and 4 Project envisages the security of strategic energy production units in Romania on the long term, at lower prices for the consumers, taking into account the availability of all the necessary resources as well as by complying to the environment objectives (decarbonization target) set forth by the European Union.
The increase in the energy production capacity of Cernavoda with two additional units has been identified by the Romanian state as the best solution to cover the capacity deficit after 2020, thus the decision to develop the Project through a Green/Brown Field procedure type aims at initiating the actions provided in the Strategy, as soon as possible, and at reducing the cost of the investment caused by delays in the Project.
The Strategy to continue the Cernavoda NPP Units 3 and 4 Project will be available for shareholders on SNN’s website, starting with 11.08.2014.