A Romanian government audit has raised concerns about the governance structure of the planned Doicești small modular reactor project, including the land transaction, an equal ownership arrangement and how financial risk is allocated between Nuclearelectrica and Nova Power & Gas. The audit focuses on whether the contractual setup matches the economic exposure of each shareholder. Inspectors also examined the basis for site selection and the commercial rationale for related decisions.
Doicești SMR joint venture ownership and funding contributions
The project aims to deploy small modular reactor technology at the former coal-power site in Doicești. Development is carried out through a joint venture with Nuclearelectrica and Nova Power & Gas each holding 50 per cent. Inspectors said Nuclearelectrica provided most of the funding committed to the development process.
According to the audit findings, Nova Power & Gas contributed initial equity of approximately €4 million and provided land associated with the project. Inspectors concluded that the economic exposure carried by the two shareholders may not be proportionate to their ownership stakes. This assessment is linked to how land-related contributions were handled within the project structure.
Land acquisition concerns and valuation differences
The audit’s central concern relates to how the land was acquired before being transferred into the project structure through Nova Power & Gas. Inspectors reported that the land was acquired using funds provided by Nuclearelectrica prior to that transfer. They questioned whether Nova Power & Gas made an economically equivalent contribution sufficient to justify its 50 per cent stake.
The report also stated that the selected site was not the preferred location identified during earlier consultancy work. Inspectors further found that the eventual acquisition price was materially higher than the valuation used in the consultant’s assessment. These points were cited as raising questions about decision-making and the commercial basis of the transaction.
Shareholder agreement risk allocation and construction exposure
Inspectors argued that the shareholder agreement distributes rights, responsibilities and project risks in a way that favors Nova Power & Gas. Their findings indicate that Nuclearelectrica may bear a larger share of development and financial exposure without receiving corresponding control or economic protection. The audit therefore highlights a mismatch between risk exposure and governance outcomes.
The review is taking place at a stage where conditions needed to reach a final investment decision had not been completed by the end of June. Questions remain regarding capital cost, financing structure, electricity-market competitiveness and allocation of construction risk.
Ministry position on reassessment and next steps after audit
Romania’s energy ministry had previously resisted management proposals to reopen the project’s technical and financial assessment. Government representatives said insufficient evidence had been presented to justify a new evaluation. The audit now provides what inspectors described as a broader governance basis for reconsidering that position.
The audit does not terminate the project, but it increases the probability of revised shareholder arrangements, additional valuation work and a more detailed review before Romania commits substantial public capital. It also notes that first-of-a-kind small modular reactor projects involve substantial cost and execution risk.
The Doicești development must address technology and licensing questions as well as issues including who finances early works, who absorbs overruns, and how land value and development rights are calculated. These items are tied to how early-stage costs and risks would be allocated under any revised arrangements.
