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Researched by Industrial Info Resources (Sugar Land, Texas)--The Bulgarian government has abandoned plans for the construction of the 2,000-megawatt (MW) Belene nuclear power plant. Bulgaria's Prime Minister Boiko Borisov said that the government intends to construct a gas-fired power plant instead of the nuclear plant.
Bulgaria has already spent 715 million ($950 million) on the Belene project. Borisov explained that Bulgaria will pay Atomstroyexport (Moscow, Russia), which was contracted to design and build the plant, the remaining 100 million ($133.5 million) for the first of the two 1,000-MW reactors that were commissioned for the plant. They intend to use the reactor at the Kozloduy nuclear power plant, which had four Soviet-era reactors shut down because of safety concerns. Kozloduy's units 5 and 6, each with a generating capacity of 1,000 MW, are scheduled to remain operational until at least 2017 and 2022, respectively.
The Belene project has failed to attract foreign investors in the past three years since Germany's RWE AG (OTC:RWEOY) pulled out in 2009 due to funding concerns. "The Belene nuclear power plant was compromised from the beginning, and such things are not welcomed in the European Union," Borisov said, referring to the fact the location was in a region prone to earthquakes. "That's why we couldn't find a self-respecting investor to commit to the project," he added.
Launched in 1981, the Belene project was first postponed nine years later due to the financial difficulties. A decision to revive the project was taken in late 2002. After a tender opened three years later, Bulgaria contracted Atomstroyexport to design and build the Belene plant in November 2006. The implementation of the project began officially in September 2008, construction of the plant was postponed again in late 2009, when RWE withdrew amid growing uncertainty about its future.
The centre-right government that won the July 2009 parliamentary elections in Bulgaria viewed the construction price, set at 6.3 billion ($8.4 billion) by AtomStroyExport, as too high, insisting that it should not exceed 5 billion ($6.8 billion). The failure to reach agreement with AtomStroyExport led to numerous delays, resulting in both sides issuing legal proceedings against each other. For additional information see October 18, 2011 article - Bulgaria Files Counter Claim Against AtomStroyExport Over Belene Nuclear Power Plant.
Under the latest six-month postponement agreed in late September, Bulgaria was to say whether it would proceed with construction by the end of this month.
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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Bulgaria has already spent 715 million ($950 million) on the Belene project. Borisov explained that Bulgaria will pay Atomstroyexport (Moscow, Russia), which was contracted to design and build the plant, the remaining 100 million ($133.5 million) for the first of the two 1,000-MW reactors that were commissioned for the plant. They intend to use the reactor at the Kozloduy nuclear power plant, which had four Soviet-era reactors shut down because of safety concerns. Kozloduy's units 5 and 6, each with a generating capacity of 1,000 MW, are scheduled to remain operational until at least 2017 and 2022, respectively.
The Belene project has failed to attract foreign investors in the past three years since Germany's RWE AG (OTC:RWEOY) pulled out in 2009 due to funding concerns. "The Belene nuclear power plant was compromised from the beginning, and such things are not welcomed in the European Union," Borisov said, referring to the fact the location was in a region prone to earthquakes. "That's why we couldn't find a self-respecting investor to commit to the project," he added.
Launched in 1981, the Belene project was first postponed nine years later due to the financial difficulties. A decision to revive the project was taken in late 2002. After a tender opened three years later, Bulgaria contracted Atomstroyexport to design and build the Belene plant in November 2006. The implementation of the project began officially in September 2008, construction of the plant was postponed again in late 2009, when RWE withdrew amid growing uncertainty about its future.
The centre-right government that won the July 2009 parliamentary elections in Bulgaria viewed the construction price, set at 6.3 billion ($8.4 billion) by AtomStroyExport, as too high, insisting that it should not exceed 5 billion ($6.8 billion). The failure to reach agreement with AtomStroyExport led to numerous delays, resulting in both sides issuing legal proceedings against each other. For additional information see October 18, 2011 article - Bulgaria Files Counter Claim Against AtomStroyExport Over Belene Nuclear Power Plant.
Under the latest six-month postponement agreed in late September, Bulgaria was to say whether it would proceed with construction by the end of this month.
View Plant Profile - 1058305 1038159
View Project Report - 79400030 200005935 300019294
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
