site.btaChina's Largest State-Owned Energy Company, European Investment Bank Show Interest in Belene N-Plant Project

Sofia, March 16 (BTA) - In mid-February the China National Nuclear Corporation (CNNC) sent a letter to Bulgaria's National Electric Company (NEK) expressing interest in the project to build a nuclear power plant at Belene, Bulgarian Energy Minister Temenouzhka Petkova said, addressing Parliament during Question Time on Friday.

Last week, the European Investment Bank (EIB) also expressed interest in the possibility of financing this project, Petkova said, adding that the EIB's interest "has a number of conditionalities related to the structuring of the project's financing and the rate of return on investment and the profit margin."

The Minister pointed out that the National Assembly resolution of March 2 will be strictly implemented, and the various options and proposals for the most rational utilization of the equipment for the Belene N-Plant will be presented to Parliament by the deadline set. Petkova said that CNNC's letter will be included in the proposals. "We are drafting such a proposal. A working group of experts of the Bulgarian Energy Holding, NEK, the State Enterprise Radioactive Waste, the Kozloduy N-Plant and the Energy Ministry has already been formed at the Ministry, so that we could come up with these proposals within the time limit set by Parliament and go ahead on the basis of the analyses that will be prepared," Petkova added.

In early August 2017, "Standart News" reported that during an undisclosed visit to Bulgaria, CNNC experts inspected the Belene site and held long talks with Bulgarian nuclear experts in Sofia, from which it emerged that the Chinese corporation seriously intends to invest huge funds in Belene - however not in the construction of the two 1,000 MW VVER-1000/466B Russian-built reactors but in its own, Chinese-made units, which are far cheaper, already hold a EU licence and have been offered at an auction in Britain. The Chinese were positive that they would be able to sell the Russian reactors.

"Capital Weekly" commented this week that, for the time being, the CNNC, which is China's largest State-owned energy company, seems the only option for a strategic investor in the Belene project.

Last week EIB Vice-President Vazil Hudak said in an interview for the Bulgarian National Radio that his bank may consider providing financing for the Belene project if approached by the Bulgarian Government.

In 2012 Bulgaria abandoned plans to build a new N-plant, at Belene, as unfeasible. In 2016, however, this country was ordered by an arbitration court to pay 1,170 million leva to the Russian contractor AtomStroyExport for two reactors it had already built for Belene. The Government has since been trying to revive the project but has ruled out any State financing, guarantees or long-term purchase of the electricity to be generated by the plant if and when it is built.