May 27 (SeeNews) - Nuclearelectrica [BSE:SNN], the operator of Romania's sole nuclear power plant (NPP) Cernavoda, said that the energy ministry has requested it to terminate all deals and negotiations with two Chinese companies for the construction of Units 3 and 4 at the NPP.
The ministry of economy, energy and business environment is asking Nuclearelectrica to amend its agenda for the ordinary and extraordinary general meetings of shareholders convened for June 12 and June 15, respectively, to include provisions regarding the ceasing of all negotiations and any signed agreements with the Chinese companies, it said in a statement filed with the Bucharest Stock Exchange (BVB) on Tuesday evening.
In May 2019, Nuclearelectrica signed a preliminary agreement with China General Nuclear Power Corporation (CGN) and CGN Central and Eastern Europe Investment (CEERI) to establish a project company (JVCO) for the construction of Units 3 and 4 at Cernavoda NPP. The JVCO was supposed to be a joint stock company that will exist for at least two years. CGN will have a stake of 51% in the project company, while Nuclearelectrica will have 49%.
Now, Nuclearelectrica shareholders will be asked to repeal the strategy for continuation of the project through holding an investor selection procedure adopted in 2014 as well as the revised version of the strategy adopted in 2018. The energy ministry owns a 82.49% stake in Nuclearelectrica.
The shareholders will also be asked to approve the ceasing of all negotiations with CGN, as well as the ceasing of the legal effects of the memorandum of understanding regarding the development, construction, operation and decommissioning of Units 3 and 4 and respectively of the investors agreement in preliminary form.
Finally, the shareholders will be asked to empower Nuclearelectrica's board of directors to initiate the necessary actions for the analysis of strategic options regarding the construction of additional nuclear energy production capacities.
The Cernavoda power plant, located in southeastern Romania, has two reactors of 700 megawatts each, which meet roughly a fifth of the country's electricity needs.
Nuclearelectrica shares traded flat at 19.16 lei ($4.34/3.96 euro) by 0954 CET on Wednesday on the BVB.
In January, economy, energy and business environment minister Virgil Popescu said that Nuclearelectrica should add two new units to the plant in partnership with companies from NATO and EU member countries, rather than with Chinese companies.
"At the moment the project with the Chinese companies has stalled," Popescu said at the time in a talk-show aired by local B1 TV. "I would prefer Nuclearelectrica to work with Romania's strategic partners because we are a NATO member and an EU member state, so I would rather work with companies from this area."
(1 euro=4.8415 lei)