site.btaEnergy Minister Petkova: State's Participation in Belene N-plant's Privatization to Be Minimal

Energy Minister Petkova: State's Participation in Belene N-plant's Privatization to Be Minimal

Sofia, June 15 (BTA) - The 12th annual conference on Strategic Infrastructure and Investment started here on Thursday with the participation of Energy Minister Temenouzhka Petkova. Answering a question about the future of the Belene N-plant project, she told journalists that the State has invested over 1,400 million leva in the N-plant's construction site, while 1,176 million leva were paid at the end of last year as part of the arbitrage court case between Russia Atomstroyexport and Bulgaria National Electricity Company (NEK). This means that there is a licensed construction site for the N-plant and the responsible State position would be to utilize it in the best possible way, given that so much taxpayers' money was spent, she added.

Bulgaria's plans to build a new N-plant, at Belene, were abandoned in 2012 as unfeasible. Last year, however, this country was ordered by an arbitration court to pay close to 1.2 billion leva to the Russian contractor AtomStroyExport for two reactors it had already built for Belene, and the Government has
 since been trying to revive the project.

Petkova recalled that the Bulgarian Academy of Science was asked by the Government to produce a new feasibility study for the project, the results of which are expected in September, after which a decision will be made. "We expect investor interest. The procedure will be public and transparent, while the State will
participate with a minority stake, without long-term contracts for the purchase of electricity, so that it can somehow control the process," the Energy Minister said.

She further noted that process concerning the possible addition of a seventh unit to the Kozloduy N-plant has been stopped, adding however, that if nothing optimistic happens with the Belene N-plant's privatization procedure, such an option could be considered.

Asked about Bulgaria's chances to be circumvented by gas pipelines through Greece and Macedonia, Petkova said that "the chance lies in structuring the policies and our adequacy". According to her, Bulgaria is a key location on the natural gas transit map and in no way should it be allowed to be erased from it.

A public procurement procedure is to be announced for building the natural gas distribution hub in Bulgaria, Petkova said. The EC has allocated financing of 920,000 euro for a feasibility study, which is 50 per cent of its total cost. The study must examine all possible options for the supply of natural gas by various sources through Bulgaria. In order to be up-to-date with the latest projects in the region, Cabinet has proposed that the study also focuses on possibility of natural gas supply with a point of entry at the border with Turkey and a point of exit at the one with Serbia, she said.

The Government's main goal is to keep Bulgaria as a key factor on Europe's natural gas map, the Minister underscored.