Marubeni Corporation and ELCEN have agreed to form a joint venture to build a 250 MW gas-fired electricity plant in the central Romanian county of Mures worth roughly 170 million euro, they announced in a statement released. 

Romanian law firm Tuca Zbarcea & Asociatii has advised Marubeni Corporation, one of the largest and most profitable of Japan's unique and powerful “sogo shosha”, according to this statement. The legal team was led by Sorin Vladescu, Partner with the firm.

The Japanese company will control 90 percent of the newly formed company, SC Fantanele Gas Power SA, and it will bring an in-kind contribution of 30 percent to the share capital of the NewCo, with the rest stemming from loans. The NewCo will operate as an independent power producer (IPP) and would be connected to the grid in 2017. ELCEN will contribute with the land required for the development of the project and access to utilities.

“Fantanele is our first infrastructure investment project in Romania and we are delighted to have reached this development phase which is part of our long-term strategy towards playing a more significant role in the Central and Eastern Europe region,” said Hiroshi Tachigami, President of Marubeni Europower. “Marubeni Europower seeks to expand its presence in Romania and this pilot project demonstrates the stability, safety and functionality of an energy market that aims to become independent. We will make every effort to successfully complete this investment with our partners and are trustfully looking forward to having a close cooperation with the authorities involved in financing the project according to the specific international rules and standards,” he added.

Gabriel Ignat, General Manager of ELCEN, Hiroshi Tachigami, President of Marubeni Europower, and other representatives from both companies and public authorities attended the contract signing ceremony taking place in Bucharest in late-July. The investment project involves the development of electricity generation units fuelled by natural gas, on the location of the former Fantanele thermal power plant which has been dismantled.