Bulgaria to Extend N-Plant Contract with Atomstroyexport - Report

Business » ENERGY | October 10, 2010, Sunday // 20:03| Views: | Comments: 0
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Bulgaria: Bulgaria to Extend N-Plant Contract with Atomstroyexport - Report Bulgaria is seeking a strategic European investor in Belene nuclear plant. RWE AG, Germany’s second-largest utility, walked out of the project last autumn over funding problems. Photo by EPA/ BGNES

Bulgaria's contract with Russia's Atomstroyexport, commissioned to build the planned 2,000 megawatt Belene nuclear plant on the Danube River, which has stalled over lack of funding, will be extended by six months, reports say.

Negotiations between Bulgaria's National Electricity Company NEK and Russia's Atomstroyexport are underway, but no agreement has been signed yet, local Standart daily reported.

The talks will yield their first results next week, according to the report.

The Bulgarian Energy Holding is expected in the short term to pick a consultant to help it decide how to proceed and attract new investors for the planned Belene nuclear power plant,

The Bulgarian government has said it will pay Russia for the production of the first unit at Belene nuclear power plant only after it finds a strategic investor.

The first reactor was expected to be built by mid-September for delivery to the site. Bulgaria has to pay an installment of EUR 280 M in addition to EUR 300 M already paid.

Bulgaria's Prime Minister Boyko Borisov unexpectedly said in June that his country was "giving up" on Burgas-Alexandroupolis oil pipeline project decision, and that construction on the planned Belene nuclear power plant had been suspended.

In a dramatic twist that left all of Europe confused, Borisov retracted his statements shortly afterwards, saying that the Bulgarian government hasn't made a final decision regarding the construction of the Burgas-Alexandroupolis oil pipeline and Belene nuclear power plant.

The statements caused confusion and dismay in Russia.

After it took office in July 2009, Bulgaria's new center-right government of the GERB party made it clear it was going to reconsider the country's participation in the three large-scale energy projects - South Stream gas pipeline, Burgas-Alexandroupolis oil pipeline, and Belene Nuclear Power Plant.

Bulgaria suspended the construction of its second nuclear power plant until it finds a new investor and funds to complete the project at Belene, on the Danube, 180 kilometres northeast of the capital Sofia.

The country's center-right government has reportedly courted Romania and Serbia as it angles for a new chief investor in its second nuclear power plant Belene to replace the German energy company RWE, which withdrew last autumn.

The plant was originally to be built by Russian company Atomstroyexport for EUR 4 B. The firm had signed a contract with the previous, Socialist-led government, swept from power by Borisov's conservative GERB party swept in last year's July elections.

Bulgaria now aims to limit the cost of the Belene nuclear plant being built by Russia’s ZAO Atomstroyexport to EUR 7 B.

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Tags: Ernst & Young, Argil, Rothschild, McGuire, KPMG, Rothschild, societe generale, HSBC, Belene, gas supplies, Belene NPP, gas transit pipeline, South stream, pipeline, Burgas Alexandroupolis Oil Pipeline, Burgas-Alexandroupolis, Viktor Zubkov, Gazprom, Vladimir Putin, Russia, Prime Minister, Boyko Borisov, Borisov, Putin, Traicho Traikov, Bulgarian Energy Holding
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