site.btaNEK Pays Debt to Russia's Atomstroyexport

NEK Pays Debt to Russia's Atomstroyexport

Sofia, December 9 (BTA) - On Thursday the National Electricity Company (NEK) wired to Russia's Atomstroyexport the sum which it owes according to the international arbitrage court decision, and it will be in their account by the end of the day, said here on Friday Energy Minister Temenouzhka Petkova during question time in Parliament.

Petkova recalled that a reduction and waiving of the interest rate was negotiated with Atomstroyexport from the date of the court's decision - June 14, until the time of payment. Atomstroyexport made a commitment to waive NEK's interest, which stood at 167,000 euro per day. If NEK pays off its debt to Atomstroyexport by December 15, then the Russian company will not seek this interest, she added.

The Minister recalled that the international arbitrage court's decision was to sentence NEK to pay for equipment its former executive directors had ordered Atomstroyexport to manufacture back in 2008, without there being a contract for building the Belene N-plant, and without clear financial parameters. Immediately after the arbitrage court's decision, measures were taken to seek an agreement with Atomstroyexport and Rosatom about the possibility to pay for these two reactors, Petkova added. She noted a failure to pay for them would have resulted in significant risks, such as Atomstroyexport seeking compensation, to freeze NEK's accounts and a collapse of the whole energy system. Legislation was adopted which allowed the provision of financial assistance to NEK, which will be reimbursed back to the budget in seven years, so that Bulgarian taxpayers would not have to pay this bill, the Minister explained.

Petkova further said that an agreement has been signed with Atomstroyexport, according to which the company is dropping its claims and investment disputes with the Bulgarian State. "With these actions, we managed to protect the country's interests regarding this project," she added.

According to Petkova, building a new N-plant is possible only if it is done completely on a market basis and there are no commitments for the State. Such a project can be implemented only if no state guarantees and no long-term contracts for the purchase of electricity are required. "In order to avoid a situation, in which the Bulgarian taxpayer pays the bill, our vision is that this project must be given a chance, considering that we own a site and will now also own equipment. This should be done transparently under the Privatisation and Post Privatisation Control Act, by singling out the assets and liabilities of this company in a separate project company, and have it offered for privatization. "Only then can we see what the true investment interest is," she added.