Bulgaria Files Counter Claim Against AtomStroyExport Over Belene Nuclear Power Plant

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Researched by Industrial Info Resources Europe (Galway, Ireland)--Bulgaria has filed a claim at the International Court of Arbitration against AtomStroyExport (Moscow, Russia) over delayed payments for equipment that it agreed to buy under a deal to build the Belene nuclear power plant. Bulgarian state utility Natsionalna Elektricheska Kompania (Sofia, Bulgaria) (NEK) signed an agreement with AtomStroyExport in 2006 to build two 1,000-megawatt (MW) reactors at Belene; however, the project has stalled over price disputes, funding problems and safety concerns.

In July 2011, AtomStroyExport took Bulgaria to an arbitration court, seeking €58 million ($78 million) over delayed payments for its work on the two nuclear reactors at Belene. NEK said AtomStroyExport owes it more than €60 million ($80 million) for buying old equipment at the Belene site, which will not be used for the new reactors.

Earlier this month, Bulgaria delayed a decision on whether to build the Belene project to the end of March 2012, when it hopes to have a clearer idea on the costs, economic viability and safety guarantees. Russia has said construction will cost €6.3 billion ($8.7 billion), while Bulgaria says it should not exceed €5 billion ($6.9 billion). "The centre-right government will make public all parameters for a possible deal, including the price, the terms for financing, and the future price of electricity and demand for it in southeastern Europe," Bulgarian Energy Minister Traicho Traikov said. "A decision for such huge funds cannot be taken with closed eyes."

On December 1, 2010, NEK signed memoranda of understanding with Russia's nuclear corporation, Rosatom (Moscow, Russia), as well as Finnish energy company Fortum (HEL:FUM1V) (Espoo, Finland) and French high technology consultants Altran (Paris), concerning the shareholding in the project company that would build and operate the plant. NEK would maintain its 51% stake in the venture, with Rosatom taking on 47%, while Fortum and Altran would hold 1% each.

Plans for the Belene nuclear power plant have been stop-and-go since the 1980s, due to political and financial issues. For additional information, see news article June 21 2010, article - Bulgarian Government Halts Construction of Belene Nuclear Power Plant.

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