Agerpres reports that the Romanian government at its meeting on Wednesday approved extending an investment agreement aimed at building reactors 3 and 4 of Cernaovda Nuclear Power Plant in a move meant to draw fresh investors, the Executive's spokesman Andrei Zaharescu has announced.

The current investment agreement, which expires at year-end, when a decision on the investment should have been taken, has been extended by six months in the present form; modifications to the document will be discussed during the six months. In the event that nuclear power company Nuclearelectrica fails to reach an understanding regarding the investments with the other two EnergoNuclear shareholders -- ENEL and ArcelorMittal respectively -- the Romanian state will redeem their stake for no more than its par value.

'The agreement will continue by cooperation among Nuclearelectrica, ENEL and ArcelorMittal as part of EnergoNuclear until no later than Dec. 31, 2013. If Nuclearelectrica fails to reach an understanding, the memorandum proposes that the project be continued by redeeming no more than the par value of the shares held by the two, so that EnergoNuclear should be controlled by National Company Nuclearelectrica', Zaharescu explained.

State Secretary at the Economy Ministry Rodin Traicu has recently said Chinese company Guandong Nuclear had voiced intention to invest up to 40 percent of the estimated costs of Cernavoda nuclear plant, namely equipment and its installation from the classic area of the two groups.

'We also held talks with SNC Lavalin company which also wants to invest 5 percent of the necessary capital for that investment,' Traicu stressed.

As for the participation of the Romanian state, it will surely drop to the evaluated value of the buildings on the site of the two units -- 3 and 4 --, of some pipeline and equipment to be employed by units 3 and 4, to the amount of the heavy water and nuclear fuel necessary for the two nuclear units for the first start, the state secretary added.

An ErnstYoung survey has recently put the investment in the two Cernavoda units at 6.4 billion euros.

Source: bne