Borisov, Djankov Reverse Belene NPP Scandal, EconMin on the Defensive

Business » ENERGY | April 6, 2011, Wednesday // 21:42
Bulgaria: Borisov, Djankov Reverse Belene NPP Scandal, EconMin on the Defensive Economy Minister Traikov (left), Prime Minister Borisov (middle), and Finance Minister and Deputy PM Djankov (right) have been tangled in a scandal over the talks with Russia for the Belene NPP. File photo by BGNES

The scandal that shook Tuesday night the Bulgarian government over the latest agreements signed with Russia for the Belene nuclear power plant has seen a dramatic twist on Wednesday.

After on Tuesday, Economy Minister Traicho Traikov said he would fire the CEO of the National Electric Company NEK Krasimir Parvanov for a deal he made with the Russians, on Wednesday Prime Minister Borisov and Finance Minister and Deputy PM Djankov reversed the situation as it turned out that Parvanov had acted at Djankov's direct orders of which Traikov had not been made aware.

Traikov had declared he would fire NEK CEO Krasimir Parvanov because the latter had signed an agreement with Atomstroyexport that he was not authorized to sign, and which was detrimental to Bulgaria's interest by setting June 1, 2011, as a deadline for making a final contract with Russia on Belene.

On Wednesday, however, Traikov was severely scolded by Prime Minister Boyko Borisov since it turned out that NEK CEO Parvanov had coordinated his actions with Traikov's superior, Finance Minister and Deputy PM in charge of the economy, Simeon Djankov, and will now keep his job.

The newly signed document between Bulgaria and Russia for the construction of the Belene nuclear plant, which caused a scandal among Bulgarian ministers, is no threat to the country's national security, according to PM Boyko Borisov.

He first commented on the signed annex 12 with the Russian "Atomstroyexport" regarding the project to build a second Nuclear Power Plant, NPP, in the Danube town of Belene Wednesday during the regularly scheduled Council of Ministers meeting.

In his statement the PM further informs the cabinet that his Deputy and Finance Minister, Simeon Djankov, had, indeed, been aware about the text of the agreement and had approved it, as the ousted Director of the National Electric Company, NEK, Krasimir Parvanov, who signed the notorious document, insists.

"We had a conference call last night with Ministers Traikov and Djankov, and their opinions differ. But I asked them to postpone the discussion on the subject until the Finance Minister returns from his visit to the US," the PM explained, asking everyone to halt "political talk on Belene."

"We must stop delivering this confusing political information and give our adversaries reasons to say we have done something different than what has been agreed on previously. This takes us years back and meanwhile we will be outdone by other countries, " Borisov told the ministers.

Speaking before reporters later during the day, he presented a more complete account of the situation in the Cabinet on the nuclear talks with Russia.

"This is the second and last time I am giving Minister Traikov a warning. Last night, after he declared that he would fire NEK CEO Krasimir Parvanov, he came to me, and we had a video conference with Finance Minister Djankov. Djankov told him explicitly how on Sunday he had summoned the Russian side, and NEK, and Parvanov, and personally led the talks. He explained to Traikov that based on the principle of subordination in the government, he as a Deputy PM has the right to do that, and to have Parvanov report to him, and that Traikov's declaration was a major blunder made without talking to him (Djankov). Djankov asked him, "What made you declare now that you will fire Parvanov? Why couldn't you talk to me first," Borisov explained regarding the conflict between his two ministers with major economic portfolios.

"I selected Djankov as a Deputy PM, and it was him who brought Traikov as a Minister of Economy believing that Traikov will carry out the tasks that he will assign to him as his superior," he said.

The Prime Minister admitted that Djankov and Traikov argued for about an hour about the precise meaning of the agreements that NEK CEO Krasimir Parvanov signed with the Russians on Tuesday for the Belene NPP.

The two ministers argued about the meaning of the term "initialing" of the contracts with Atomstroyexport. Djankov claimed that every page of the agreements did not commit Bulgaria to anything until an actual contract is signed, while Traikov argued that the second of the two documents signed by Parvanov obliged Bulgaria to make a final contract on Belene.

"I told Minister Traikov that he is important to me, and that it is probably pleasant to him to be compared with Berbatov but that ours is a collective sport, and that he is a part of a team, and that he has to comply with Djankov, the person that I appointed," Borisov explained referring to some media publications describing Traikov as a star solo player like Bulgarian football star Dimitar Berbatov, and vowing to put some order in his Cabinet.

"Sure this is unpleasant because only 2-3 months ago you accused me of not letting the ministers talk, and that I am a dictator, and now that I have let them talk, they are all rushing to talk, so I will get them together and will put some order in all that talking," the PM declared.

He emphasized that the NEK CEO has not been fired at the insistence of Finance Minister Simeon Djankov.

Despite the above, Borisov added that if it is proven Parvanov failed to inform Economy and Energy Minister, Traicho Traikov, he would support the latter's demand to fire the NEK Head.

Recalling the entire history of the Belene project, Borisov declared that the time has come to either end it, or to give the real start of its construction.

Commenting the case from the USA where he is on a four-day tour, Finance Minister Djankov declared that Bulgaria's interests have been protected with the signing of the latest documents with Atomstroyexport on Belene. He told BNT late Wednesday night that he had been aware of the talks and the actions of NEK CEO Krasimir Parvanov in his dealings with the Russians.

According to Djankov, none of the two documents that Parvanov signed obliged Bulgaria to build the Belene NPP at any price – which is precisely the accusation that Traikov mounted against the NEK head Tuesday night.

Djankov denied any sort of conflict between him and his subordinate, Economy Minister Traikov.

Bulgaria's Economy Minister Traicho Traikov and Russian Energy Minister Sergey Shmatko have not demonstrated any agitation over the scandal that shook the Bulgarian government regarding the Bulgarian-Russian talks for the Belene NPP.

Traikov was in Moscow Wednesday night for the one-day session of the joint Bulgarian-Russian commission for economic cooperation.

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Tags: Economy and Energy Minister, Russia, Krasimir Parvanov, NEK, Rosatom, NPP, Belene, Atomstroyexport, National Electric Company, NEK, Traicho Traikov, Simeon Djankov, press conference, Prime Minister, Boyko Borisov, Council of Ministers, Economy Minister

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