BULGARIA ENERGY MINISTER: NUCLEAR PLANT NEEDS EU INVESTOR

BULGARIA ENERGY MINISTER: NUCLEAR PLANT NEEDS EU INVESTOR

Bulgaria’s Economy and Energy Minister, Traicho Traikov, declared that there aren’t any disagreements between him and Finance Minister, Simeon Djankov.

Traikov spoke in an interview for Darik radio Saturday, addressing reports that the two do not see eye to eye regarding the project to build a second Nuclear Power Plant (NPP) in the Danube city of Belene. The reports came in the heels of Djankov’s statements that the NPP would not be built without an European investor and that he would not “give even a penny from the budget to construct Belene.”

As proof for the lack of contradiction, Traikov reminded about his own statements from July, August and September when he said the State cannot afford to undertake the risk to invest billions in the NPP.

The Energy Minister further informed he had asked the assistance of the US Ambassador to Bulgaria, James Warlick, in finding American investors, but pointed out he doubts US businesses would want to invest in Russian technology. Traikov, however, said that European investors would be willing to do so, while the withdrawal of the German RWE in October was due to financial and not technology issues.

The Minister explained that the EUR 1 B invested by Bulgaria so far and the EUR 1 B that would be loaned from Russia would provide for shares of the two countries in the ratio of 51% to 49% respectively. Until the Russian EUR 1 B is exhausted, Bulgaria would be seeking a strategic investor to repay the money to Moscow. In case the search fails, Russia would grant another EUR 1 B credit, to be repaid through future profits while the profit risk is undertaken by Russia, Traikoiv says.

Regarding a publication in the Russian daily Komersant defining the plan as a way for Russia to own for the first time a NPP abroad, the Minister commented he did not understand the Bulgarian obsession to read Russian press, adding Bulgarian media, under similar logic, could write headlines such as “Bulgaria Acquires NPP Shares for Free.”

On February 19, after meeting his Russian counterpart Sergey Shmatko, Bulgaria's Energy Minister informed Russia is going to grant Bulgaria a loan for the Belene construction.

On that same day, the government announced the tender for selecting a financial consultant to help it pick a strategic investor in the Belene NPP.Traikov said after the meeting that a Russian EUR 2 B loan will be granted to Bulgaria without any corporate or state guarantees.