Bulgarian Parliament To Vote On State Loan To NEC

Business » ENERGY | September 28, 2016, Wednesday // 07:56| Views: | Comments: 0
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Bulgaria: Bulgarian Parliament To Vote On State Loan To NEC BGNES

The Bulgarian Parliament will vote at second reading on Wednesday for the approval of the loan which the state will grant for the equipment for the Belene nuclear power plant, ordered from Russia 8 years ago.

The debt was incurred after a decision of the Arbitration Court in favour of the Russian Atomstroyexport which built two reactors ordered without a contract by the National Electric Company (NEC) at the end of 2008.

According to the draft bill submitted by the Council of Ministers on September 20, the state will provide NEC with financial aid for the settlement of the debt but no concrete sum, deadline or conditions have been specified. The debt to Russia is EUR 530 M but Bulgaria is disputing the interest which, in Bulgaria’s opinion, has not been calculated correctly.

After ratification by Parliament, the scheme has to be approved by the European Commission because of the restrictions on state aid.

The draft bill is being pushed through Parliament at great speed because the daily interest is EUR 167, 000. On Tuesday, the bill was approved at second reading by the budget commission. The topic was also covered in the telephone conversation between PM Boyko Borissov and Russian President Vladimir Putin.

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Tags: Belene, Putin, Borisov, Atomstroexport, NEC, arbitration court
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