Caretaker Energy Minister: Kozloduy NPP to Finalize Engineering Contract with Hyundai and Westinghouse Consortium

Yoanna Vodenova

Caretaker Energy Minister Vladimir Malinov (BTA Photo/Milena Stoykova)

Sofia,

01.11.2024 13:15

(BTA)

Negotiations for signing an engineering contract between Kozloduy NPP - New Builds Plc and a consortium between Korea's Hyundai Engineering and Construction and the U.S. Westinghouse Electric Company are expected to be completed on Thursday, November 1, caretaker Energy Minister Vladimir Malinov told journalists at the capital's Hyatt Regency Sofia Hotel, where a Korea-Bulgaria energy forum is being held on Friday.

The caretaker minister recalled that according to the roadmap, which was approved by a decision of the National Assembly at the beginning of 2024, the contract was to be signed in the middle of the year, but according to him it is now more robust.

"On Monday we expect to sign the engineering contract which will enable us to have three very important milestones within 12 months of signing it. To have a precise timetable for the implementation of the project. To have a fixed price for the implementation of the project, which will enable the future minister, whoever he will be, to submit a report to the National Assembly so that the Bulgarian state can make a final investment decision for the implementation. To have a predictable price at which the new capacities will produce nuclear energy and whether it will be profitable and affordable for the Bulgarian society and for the whole region," Malinov said.

The energy minister added that the subject of the contract, which will be signed with the consortium, is to make the conceptual design, which will serve as a basis within these 12 months the company to apply for a building permit for the Unit 7 of Kozloduy NPP to the Regional Development and Public Works Ministry.

In response to a question by BTA on when exactly the price of the construction of Unit 7 will become clear and whether negotiations on this issue can be held, Malinov said that it will be known at the end of the term of this contract, as the design phase should be completed. Furthermore, all the components of such a complex project and all the suppliers of primary and secondary equipment need to be identified.

"My expectation is that at the end of this 12-month period we will have a proposed price that will be binding for the contractor for a period of between 6 and 9 months," said Malinov. He explained that within this period, after the contract is completed, Bulgaria will have the opportunity to do its own analysis to find out what the final price of electricity produced will be. According to him, if this price is unfavourable, there is nothing that cannot be negotiated. If there is the need, optimisation will be sought and then the report will be submitted to the National Assembly which will take the final investment decision.

To another journalist's question, the caretaker energy minister replied that it will be a contract for designing and defining the key parameters for the overall project - for Unit 7 and Unit 8, but the conceptual design that will be developed under this contract will be for Unit 7, as the environmental impact assessment procedure for Unit 8 is underway.

/RY/