In order to fund its gas-fired unit at TPP Iernut, Romanian state-owned natural gas producer Romgaz received 23.6 million euros from the state.
The contract for financing new gas-fire unit was signed in 2017, when the Government agreed to provide Romgaz with a grant of a maximum of 66 million euros for the construction of a new unit. This is the second tranche of that grant, since Romgaz already received 4.3 million euros in June 2018.
In November 2016, Romgaz has concluded an agreement worth 268 million euros (without VAT) with a consortium of Spanish company Duro Felguera and Romanian Romelectro for a turnkey project for the construction of new 430 MW gas-fired power plant within its Iernut thermal power plant. The deadline for the completion of the new combined cycle power plant is 36 months from the effective date of the contract, which shall be within 5 working days from the date the NIP financing is approved. Romgaz took over Iernut thermal power plant in 2013 from Bucharest-based thermal energy producer ELCEN in exchange for deleting a 145 million euros debt. Initially, the plant was supposed to be commissioned in early 2020, but delays have arisen, both as a result of disagreements between partners regarding the provisions of GEO 114/2018 and regarding the increase in construction costs. In May, Romgaz CEO Adrian Volintiru said that the unit will be commissioned by the end of 2020.
