site.btaUPDATED Caretaker Energy Minister Expects Contract Signing for New N-plant Units at Kozloduy NPP with Hyundai, Westinghouse by End-October

Caretaker Energy Minister Vladimir Malinov held a meeting with the CEO and President of Hyundai Engineering & Construction Young-Joon Yoon. Malinov says that he expects an engineering contract to be signed by the end of October between Kozloduy Nuclear Power Plant (NPP) - New Builds and a consortium between Korea's Hyundai Engineering and Construction and the American Westinghouse Electric Company, the Energy Ministry said on Monday. 

The Energy Ministry pointed out that with a decision of February 23, 2024, Parliament gave the green light to talks between Kozloduy NPP - New Builds and Hyundai Engineering & Construction Co. shortlisted as a potential contractor for engineering, design, delivery and commissioning of new N-plant units on the site of the existing Kozloduy NPP. The future N-plant units will use the AP1000 technology of Westinghouse.

At a Sofia forum in the end of June, the leadership of the Hyundai E&C said that it is confident that the company will successfully build Europe's first AR 1000 reactor in Bulgaria. In the projects that the company is implementing outside South Korea, the basic principle is to make a national contribution through localization of activities.

At the same event, caretaker Minister Malinov said that the construction of new nuclear capacities at the Kozloduy NPP site should be implemented in the shortest possible time, in a competitive environment and under the best economic conditions. "Within the second half of next year [2025], three parallel processes have to be completed - securing financing, preparing the basic design for Units 7 and 8 and taking a final investment decision," he added at the time. Malinov, who visited the US earlier in 2024, pointed to the results of meetings he held in Washington, during which a firm commitment was made by the US Exim Bank both to finance Westinghouse's participation in the project and to secure part of the participation of Bulgarian business in it. Discussions are also underway with the Export-Import Bank of Korea.

Minister Malinov and Yoon Young Joon agreed that the two countries will make every effort to build the first AP 1000 reactor in Europe in Bulgaria. "The project for the construction of Unit 7 and 8 at the Kozloduy NPP is strategic for Bulgaria and Europe to achieve a low-carbon economy. A key objective for the Bulgarian government is to accelerate the implementation of the project and this year it is crucial to focus on the design, structuring of the financing and the business model," Malinov stressed during the meeting with the management of Hyundai E& C. The project, which is the largest not only in Bulgaria but in the whole region, has the full institutional support of the National Assembly of the Republic of Korea, it also became clear during the meeting of Minister Malinov with Lee Chul-gyu, Chairman of the Committee on Trade, Industry, Energy, SMEs and Startups in the National Assembly, which was also attended by the CEO and Young-Joon Yoon. "We greatly appreciate Hyundai E&C's willingness to work together with Westinghouse Electric Company so that the two companies can jointly provide an integrated service for the engineering, procurement, construction and commissioning of the new facilities. This will ensure the successful implementation of the project within the set timeframe," Malinov told his hosts. The participants in the meeting underlined their common vision for the implementation of the project in strict compliance with the originally set schedule and budget.

Malinov and Lee Chul-gyu also discussed potential opportunities for deepening cooperation between the two countries, pledging to promote joint activities in all areas of mutual interest. "The Republic of Korea is an important partner in the field of solutions to tackle climate change, renewable energy and energy efficiency, nuclear energy, new energy technologies and others," Malinov stressed during his visit to the National Assembly of the Republic of Korea. In his words, promoting investments by companies from both countries in the energy sector will contribute to the implementation of the energy transition.

Speaking to the representatives of the National Assembly of the Republic of Korea, the Bulgarian Energy Minister highlighted Bulgaria's 50 years of experience in operating nuclear power plants. In this regard, the issue of the prospects for the construction of a repository for spent nuclear fuel discussed in the Republic of Korea was also addressed. The two countries will also exchange experience in the construction and operation of hydroelectric power plants and pumped storage hydroelectric power plants as the most promising energy storage facilities.

On the first day of his visit to Seoul, Energy Minister Vladimir Malinov also held talks with the Chairman and CEO of one of the leading state-owned banks, the Export-Import Bank of Korea, Hee-sung Yoon. As the official export credit agency, it provides comprehensive export credit and guarantee programmes to help Korean enterprises do business overseas.

"For the Bulgarian side, the issue of securing financing for the implementation of the project to build new nuclear capacity at Kozloduy NPP remains of key importance. In accordance with the decision of the National Assembly of December 18, 2023, the negotiations on securing external financing with financing institutions for the construction of new nuclear capacities should be completed by July 30, 2025. We aim to achieve an optimal mix to secure financing from both Korean and US institutions," he added. Malinov recalled that after his visit to the US in May 2024, a letter of intent was received from the US Exim Bank to provide over USD 8 billion in financing for the project. A commitment has been made by the Korean Exim Bank to fast track the issuance of a letter of intent to finance the Korean participation in the project as much as possible and to receive the document within the month of September.

Energy Minister Vladimir Malinov will also hold talks with Youngjin Jang, Chairman and President of the Korea Trade Insurance Corporation (K-SURE), the statement added.