The Government mandated Wednesday, the Ministry of Energy to exercise the right to vote in the General Meeting of the Shareholders of Complexul Energetic Oltenia (CEO) in order to form the project company for the construction of the 600 MW coal powered energy group at the Electrocentrale Rovinari Branch, writes Mediafax.

“The project “Green / Brown Field” type, will be conducted by a joint venture company that will involve China Huadian Engineering Co. Ltd. (CHEC), with an initial contribution in cash of at least 30% of the total capital required for the investment and ensuring future financing and Complexul Energetic Oltenia (CEO), by contribution in kind (land and buildings).

The total value of the project, estimated by the feasibility study is 847.639 million euros, with a payback period of approximately 12 years and a lifetime of 30 years, the commissioning is scheduled for 2019. The project implementation which will use lignite as fuel base from Rosia, Tismana and Pinoasa quarries, which belong to CEO, will bring substantial benefits for CEO and the Romanian economy in general, ” reads a press release of the Government.

The cited document shows that in the last 25 years no major investments have been made in the heating system in Romania and that some of the equipment and materials necessary for construction and operation of the new plant will be provided by the Romanian industry, according to Mediafax.

The authorities stated that over 4,000 jobs will be created during the project implementation and the new energy group will use 4.6 million tons of lignite annually, which means securing 3,000 jobs and creating another 1,800.