The solution for completing the Iernut power plant, even if the Spanish builder goes into insolvency. What Burduja says
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The Minister of Energy, present at the construction site of the Iernut gas-fired power plant, which is 97% complete, says he has found the solution to complete the project, even in the situation where the Spanish entrepreneur Duro Felguera is entering insolvency – direct payment of subcontractors by Romgaz
“I was at the construction site of the Iernut gas-fired power plant, one of the most important strategic investments in the National Energy Sector. The project was started in 2016 and was blocked in 2019, at the 80% stage. At the beginning of my mandate at the Ministry of Energy, we managed to sign the order to restart the works, after colossal diplomatic, political and legal efforts, about which a book would be worth writing at some point.
Today, the construction stage of the Iernut thermal power plant is 97%, which represents good progress, but still insufficient. Only 3% separates us from commissioning. “So little and yet so challenging. Today’s meeting was attended by the management teams from Duro Felguera and General Electric, the most important companies involved in the project from the beginning. According to the current contract, the works must be completed by June 2 of this year,” said Burduja.
“We sent a very firm message that we will no longer tolerate delays, postponements and excuses. The responsibility for these lies with the builder, and our priority is to find solutions, in the context of the financial difficulties that Duro Felguera is experiencing, the company being in a preventive arrangement procedure.
It was a good meeting, focused on solutions to accelerate the works. One of these is the direct payment by the Romanian company to the subcontractors. General Electric has agreed to the conditions for resuming the agreements. Next week is critical for all these steps to save the Iernut project and I publicly guarantee that both the Ministry of Energy and Romgaz, a company in our portfolio, will do everything humanly possible to take the investment beyond the finish line. Today we went over all the works remaining to be executed, including in the field, we defined deadlines and responsibilities”, the Minister of Energy also said.
The Spanish builder of the plant, Duro Felguera, which would have only 3% of the 430 MW Iernut plant project to be completed, could enter insolvency, which raises questions about whether the final completion deadline of June 2 can be met.
The Spanish company Duro Felguera, the contractor of the Iernut plant, is in a pre-insolvency procedure that it entered in the latter part of last year. The company is trying to survive by converting a debt of 120 million euros – loans received in the past – into shares if the Spanish state, represented by the holding company SEPI (Sociedad Estatal de Participaciones Industriales), gives its consent. If an agreement is not reached by March 11, it is very likely that Duro Felguera will enter insolvency.
In December 2024, Romgaz announced to shareholders that the new deadline for the commissioning of the Iernut gas-fired power plant is June 2, 2025, which means a 6-month extension compared to the last deadline assumed and exceeded.
“The total progress of the investment in the turnkey project at the end of October 2024 (consisting of the execution of the initial works contract plus the execution of the new works contract New works contract) is approximately 95%. The total progress of the investment project related to the new EPC contract, awarded last year, was 70.6% at the end of October 2024,” Romgaz said at the time.
National gas producer Romgaz signed a contract in 2016 with the companies Duro Felguera and Romelectro, for the construction of a new power plant for the production of electricity within the Iernut thermal power plant, with a capacity of 430 MW. The plant should have been put into operation at the beginning of 2020, according to initial plans.
