The completion of the 430 MW gas-fired power plant at Iernut, being built by the Spanish contractor Duro Felguera for Romgaz, is at risk due to the contractor’s insolvency issues and a 400 million euro fine related to its previous contract in Algeria. Originally expected to be finished in 2020, the plant is still not operational.
Duro Felguera has been seeking creditor protection since December 2024, aiming to begin talks for a restructuring plan. Romanian Minister of Energy, Sebastian Burduja, stated that if the Spanish company is unable to continue with the project, the government will intervene and directly pay the subcontractors involved.
Minister Burduja also mentioned that the TPP Iernut gas unit is 97% complete, which is a positive development. However, it still falls short of full completion. Although only 3% of the work remains, this small portion still presents significant challenges.
In November 2016, Romgaz entered into an agreement worth 268 million euros (excluding VAT) with a consortium of Duro Felguera and Romanian Romelectro for the construction of a new 430 MW gas-fired power plant at Iernut. The deadline for the project completion was set at 36 months from the effective date of the contract, which would begin within five working days from the date the NIP financing was approved. Romgaz took over the Iernut thermal power plant in 2013 from Bucharest-based thermal energy producer ELCEN, in exchange for canceling a 145 million euro debt.
In late 2020, Romgaz stated it would not grant an extension for the deadline of the gas-fired unit construction at the Iernut thermal power plant, as proposed by the project’s contractors—Duro Felguera and Romelectro. The agreed deadline for completion expired on 26 December 2020.
After prolonged negotiations, in April 2023, Romgaz signed a 70 million euro contract with Duro Felguera to complete the remaining works on the combined cycle gas turbine power plant at Iernut.
