Bulgarian Nuclear Plant Belene to Cost EUR 10 B

The second Bulgarian Nuclear plant Belene may cost up to EUR 10 B if the price is calculated in reference to the inflation rate in Russia.

Currently, one of the contractors for the construction of the nuclear plant near the town of Belene at the river Danube shore is the Russian AtomStroyExport, and the contract with it is for UER 3,9 B, the Chair of the Bulgarian Energy Holding, Boris Petkov, said for the Pari Daily.

"We insist that the Bulgarian, or at least the Euro Zone inflation, is considered in calculation of the price, because they are significantly lower than the Russian one. The most favorable will be the Euro Zone inflation rate, for it was only 1,1% in January 2009", Petkov said.

In Russia, the inflation rate for 2008 was 14%, and in Bulgaria - 8%. Until the end of 2009 it is expected to fall to 11% in Russia, and in Bulgaria it is not likely to exceed 4,9%, Boris Petkov added.

"In such an expensive project like Belene nuclear plant, every single percent will significantly affect the final price. That is why the negotiation with AtomStroyExport have lasted so long. The Russian company, though, cannot quit the project now, because they have already completed some things at the construction site and have not received their money yet", Petrov explained.

In his words, finding financing is extremely difficult because of the global financial crisis. Even the German contractor RWE, which is expected to obtain 49% of the future nuclear plant, intends to take part in the project after the financial issue is solved.

One of the possibilities for financing is a loan form Russia. The Russians, though, want the loan to be 100% guaranteed by Bulgaria, Petrov said. That means that the state's budget should give EUR 3 B.

At that stage of the project money are provided only until the end of 2009. The financing comes from loans form EURATOM (EUR 300 M), and BNP Pariba (EUR 250 M).

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