Suceava mayor Ion Lungu said Wednesday that Raiffeisen Bank, which is financing part of the investment, tied the granting of a EUR62 million loan to Adrem Invest’s owning the respective land.
Lungu said the land was evaluated at EUR315,467 (RON1.07 million), which is higher than the amount local authorities would cash from leasing the land for a 30-year period.
Adrem Invest set off in March the construction project of a cogeneration thermal power plant using biomass in Suceava, which will engulf over EUR80 million. Construction works will be carried out by firm General Construct. The plant will produce thermal power starting this winter and will supply electricity starting with the spring of 2014.
Austrian firm URBAS will provide the necessary equipment.
In 2011, Adrem Invest Bucuresti won an auction held by Suceava local authorities to build a cogeneration thermal power plant and set up a new thermal power company.