A Chinese state company signed a memorandum with Termoelectrica to invest at Doicesti thermal plant

Termoelectrica state company signed in April an agreement memorandum with a Chinese state company, China Huadian Engineering for the creation of two new groups at Doicesti thermal plant, Termoelectrica chief of service for international cooperation Stefan Arama said. Romania’s Economy ministry plans to save the company from bankruptcy by setting up a private public partnership.

Termoelectrica plans to set up at Doicesti a mixed company in which the investor will hold majority of shares. At least 30% of the value of the project will come from the investor and the rest will be covered by the credit that the new company will contract with the support of the investor.

The investment is estimated at 700 million euro. According to the Economy ministry, by October 2011 a feasibility study will be conducted and the new company will be registered by January 2012 following to obtain the agreement of banks over the financial package by February 2012 and in March 2012 executive works will start.