site.btaEnergy Minister Petkova: Risks for Energy System Are High If Belene N-plant Debt Is not Paid

Energy Minister Petkova: Risks for Energy System Are High If Belene N-plant Debt Is not Paid

Sofia, September 21 (BTA) - If the arbitral award for the Belene N-plant project is not paid the risks for the Bulgarian energy system are exceptionally high, said here on Wednesday Energy Minister Temenouzhka Petkova. She was speaking in Parliament during the first reading of a Bill for extending State aid to the National Electric Company (NEK) to pay for the equipment, plus interest, awarded against it by the International Court of Arbitration in Geneva for two reactors built by Russia's AtomStroyExport for the suspended N-plant project. Petkova described the Bill's adoption as an important step for solving one of NEK's most serious problems.

"By paying NEK's obligation, we are eliminating a few main risks - the accumulation of interest will stop, which amounts to 324,000 leva per day," she said, adding that this can pose a very serious risk for NEK's financial stability and the whole energy sector.

There is a risk, if the Court's decision is not honoured, that AtomStroyExport will ask to declare NEK bankrupt, the Minister said.
 
Parliament approved Wednesday on first reading the Bill for extending State aid to NEK. In order to observe the rules concerning State aid, the Bill includes the condition that the grant to NEK must be first approved by the European Commission. According to the Budget and Finance Committee's report, the amount of principal and interest payable to date by NEK adds up to 628,957,596 euro. The interest between September 20 and December 31, 2016 will add up to 17,272,536 euro.

The Bill was supported by 132 MPs, two voted against and six abstained. The BSP-Left Bulgaria MPs did not vote.