" Bulgaria aims for joint venture on nuclear plant "

["Franta, Jaroslav" <frantaj@AECL.CA>]

Antinukes are funny -- if a political decision on nuclear power is deferred

'till after an election, they proclaim that its to help the party's

re-election. 

Of course if the decision is taken before an election, the antis curse that

"the deal... is part of the government's re-election campaign ahead of 2005

general polls" (see below).

Isn't life great, when you can have it both ways ?



Jaro 

^^^^^^^^^^^^^^^^^^^^^^^





INTERVIEW-Bulgaria aims for joint venture on nuclear plant

Reuters News English

6 May 2004 

By Michael Winfrey 

SOFIA, May 6 (Reuters) - Bulgaria will choose a foreign contractor to take

up to 49 percent in its $2.0 billion Belene nuclear plant, which it is

building to remain the top Balkan power exporter after EU entry, its energy

minister said on Thursday. Prime Minister Simeon Saxe-Coburg announced at

Belene's Danube-river site on Monday that his government would complete the

partially finished project, where building stopped last decade due to a lack

of funds and environmental concerns.



The government will choose one of three rival consortia to join the

joint-venture operation and build 1,600-2,000 megawatts of generating

capacity by 2010, at a price of up to $2.0 billion, Energy Minister Milko

Kovachev told Reuters.



"Our thinking is that a majority share in the ownership will belong to a

state company... Up to 49 percent could also be controlled through a private

operator (an investor)," he said.



The government says Belene is crucial for Bulgaria to remain the leading

energy exporter in south-east Europe later this decade as it shuts down

aging reactors at nuclear generator Kozloduy ahead of EU entry in 2007.



But critics say the deal, Bulgaria's largest investment in two decades and

equal to 10 percent of the country's annual output, is part of the

government's re-election campaign ahead of 2005 general polls and warn that

its cost will be uncompetitive in the Union's liberalised energy market.



PRICE CRUCIAL



Parties vying for the contract include a group comprising Czech heavy

engineering firm Skoda Praha and banks Komercni Banka, also from the Czech

Republic, Citibank of the United States and Italy's Unicredito, Kovachev

said.



A second comprises France's Framatome and Russia's Atomstroiexport, while a

third includes Canada's Atomic Energy Canada Ltd, Italy's Ansaldo Nuclear,

Bechtel of the United States and Japan's Hitachi Corp.



The first two groups propose continuing work on the abandoned Belene site,

where $1.2 billion in infrastructure, including a 1,000 megawatt

Soviet-designed reactor, has been supplied but not installed. The third

group recommends building a new plant.



Kovachev indicated those who favoured continuing with the initial site and

topping off the Russian-made reactor with modern control mechanisms could

significantly undercut the $2.0 billion price estimate.

"This is a logical conclusion... This ($2.0 billion) figure is just

indicative. It could be an expected ceiling," he said. "Any (contractor)

might use part of the already invested funds."



He said that because the state-owned company would have to finance its share

of the deal in a future liberalised market, the project's end price would be

key in choosing a contractor.



"We are looking for a price that can be expected to be competitive on an

open, liberalised market and not contribute to stranded costs," he said.



The state-owned firm that will retain at least 51 percent and control over

the nuclear plant will finance its part of the deal through commercial

channels, the details of which will be ironed out later, Kovachev said.



He added that the government had agreed to guarantee parts of both the

state-run and private partner's financing.



The council of ministers should decide on how to choose the contractor by

June. "We expect to choose the preferred candidate by the end of the year,"

Kovachev said.