Romgaz has terminated the contract for the construction of the Iernut thermal power plant
- The saga of extending the termination suspensions is over.
- Romgaz does not reach any solution with the Spaniards from Duro Felguera and Romelectro for the construction of the Iernut power plant and terminates the contract.
On Friday evening, the natural gas producer Romgaz announced on the Bucharest Stock Exchange that it had terminated with the Spaniards from Duro Felguera and Romelectro the contract for the construction of the Iernut thermal power plant, a decision motivated “by the non-completion, by the executor, of the works construction and commissioning of the investment objective " , writes Ziarul Financiar.
„Termination of the Works Contract no. 13384/2016, starting with June 17, 2021, intervened as a result of the fulfillment of the term for suspending the termination notification, without the parties having agreed on a solution to ensure the completion and commissioning of the investment objective, in term as short as possible " , it is shown on the stock exchange.
In recent weeks,
Romgaz has announced several times on the stock exchange that it will extend the suspension of the notification of termination of the execution contract for the Iernut plant concluded with the Spaniards from Duro Felguera and Romelectro.
The two sides have been in conflict since early April when Romgaz unilaterally decided to terminate the contract amid delays. The company was immediately sued by contractors, so Romgaz reversed the decision, suspending it. Since then, several extensions of the suspension have followed, during which time the works have taken a step back.
The project of the Iernut plant was awarded by Romgaz in 2016, the initial deadline for the delivery of the investment being 2019. Of the value of 269 million euros of the contract, 69 million euros come through the National Investment Plan, money which, in the absence of a agreement, should have been returned by the company.