RUSSIA PROPOSES THE NEGOTIATIONS ON THE BELENE NPP PROJECT TO CONTINUE UNTIL DECEMBER 1ST

The Russian company Atomstroyexport (ASE) JSC proposes the deadline of the Belene NPP construction contract to be extended by December 1st. The contract addendum N 14 has been already sent to NEK (National Electric Company). A copy will be also mailed to the HSBC (Hongkong and Shanghai Banking Corporation) Financial Adviser. By September 10, the British Bank is expected to propose an option for the financing of the Belene NPP construction. Besides, it should clarify whether the electricity generated by the future NPP could be sold at competitive prices at the Balkans.

The draft of the consecutive addendum was drawn up in compliance with the scheme of the key measures on the project implementation, explained also from ASE. The company expects to hear the standpoint of the Bulgarian side on the document by August 15.

Currently, the negotiations on the plant's construction continue. Besides, a financial group has already been set up with the aim to consider the options for attracting funds for the Belene NPP construction. Insiders from NEK explained for Klassa daily that the basic option discussed at the moment was finding a way for the Russian side to finance the project. The possibilities for ASE are either to become a shareholder in the future project company, or to be just a lender. For more than a year now, Moscow has offered to provide a loan worth over € 2 bn for covering the construction costs of the Belene NPP for 33 months ahead. In fact, Bulgaria has not yet responded to the proposal.

Both sides have made progress also on the signing of the EPC contract (Engineering, Procurement and Construction) related to the Belene NPP project, but there is still no clarity when it will be finally drawn up.

The Russian proposal for a deadline extension of the negotiations for the Belene NPP construction was delivered a day after our Moscow partners claimed their readiness for new talks on the purchase of the outdated equipment at the construction site.