China's CGN selected for Romania's nuke project

Romania and China General Nuclear (CGN) signed on Friday a joint letter of intent to build two new reactors in Romania's Cernavoda nuclear plant for which the Chinese company has been designated as an investor.

According to a statement of Romania's state-owned nuclear utility Nuclearelectrica, the selection followed investor qualification stage, completed on September 9, by analyzing Documentation of Intent in term of investor's experience in similar projects, its financial capacity and other requirements set by Nuclearelectrica.

CGN was the only company that submitted qualification documentation, according to Nuclearelectrica.

According to the schedule date, the two parties will negotiate and sign the Memorandum of Understanding on Joint Implementation Project, to be sent to Nuclearelectrica's General Meeting of Shareholders for approval.

Nuclearelectrica and CGN will also sign an agreement to create a joint project company, in which the selected investor holds at least 51 percent of the shares.

The project for two new reactors is currently estimated to cost 6.45 billion euros (8.26 billion U.S. dollars) and will be possibly reviewed after the feasibility study.

Romania already has in Cernavoda two operating Candu nuclear reactors, which came into service in 1996 and 2007. Combined, they provide some 20 percent of the country's electricity.