site.btaBulgaria Contests Method of Calculating Interest for Payment for Belene N-plant Equipment

Bulgaria Contests Method of Calculating Interest for Payment for Belene N-plant Equipment

Sofia, September 13 (BTA) - Bulgaria is challenging the method by which an interest has been calculated for the payments it has to make to Russia for equipment produced for the Belene N-plant project before it was scrapped. "The amount of the awarded interest does not match our analyses," Bulgarian Energy Minister Temenouzhka Petkova told reporters here Tuesday.

In June 2016, the Arbitration Centre of the Chamber of Commerce and Industry of Geneva ordered Bulgaria's NEK to pay Atomstroyexport of Russia 550 million euro for the equipment for Belene N-plant, plus interest.

Petkova blames the exorbitant interst on a technical error which has led to calculating an interest on the interest, and this is inadmissble by the Bulgarian legislation and cannot be paid.

She said that Bulgaria wants this amount to be recalculated so that the final amount due can be calculated. "In any case I expect that the amount of the obligation will be reduced to reflect our arguments for setting the interest," Petkova added.

She expects the arbitration court to make a decision on the Bulgarian appeal within a month.

The Bulgarian side is also about to inspect the equipment that Atomstroyexport has produced for Belene. "We cannot pay for something we have not even seen," Petkova commented.

She recalled that in 2012 Bulgarian experts made seven inspections and monitored certain production stages.

The Energy Minister said that the decision about how to pay for the equipment will be made by the government and discussed with the legislature "because it will have implications for the future generations and a consensus is needed".