The Ministry of Energy approved the application submitted by Romgaz regarding the funding from the National Investment Plan of a new gas powered plant at Iernut, according to a press release of Romgaz, issued to the Bucharest Stock Exchange.

“The National Company for Natural Gas Romgaz SA announces the Ministry of Energy communicated on January 18th, 2017, the approval of the Financing Application for the investment ‘Combined cycle with gas turbines’, submitted in order to attract funds for investments financed by the National Plan Investment,” it is shown in the press release..

According to the document, the negotiation process between Romgaz and the Ministry of Energy will take place in the following period, on the terms of the financing agreement and on the timetable for the reimbursement requests (which includes the estimated amounts to be refunded and the date of submission of the requests).

The national producer of gas Romgaz signed on November 1st, 2016 a 268 million euros, excluding VAT, worth agreement with the companies Duro Felguera and Romelectro, in order to build a new power plant for electricity production within the thermal power plant at Iernut.

The object of the agreement is the completion of “turnkey”project – respectively design, equipment supply, performing works and commissioning – “The Development of the CTE Iernut by building a new thermal power plant, with a combined cycle with gas turbines.”

The deadline for the completion of works is 36 months from the date of entering into force of the agreement, provided within 5 working days from the date of approval of the financing file from the PNI funds, according to an announcement of Romgaz.

Romgaz took over the Iernut power plant in 2013 from Electrocentrale Bucuresti, in exchange with a debt of 653 million lei.