2013-01-24 00:00:00 | Amount spent on clearing Belene site

In January 2013, we learnt in the Bulgarian press that a total of 109 million euros were paid for the clearing of the Belene NPP construction site. 

2012-03-28 00:00:00 | Official cancellation of the project by the bulgarian government

The Bulgarian government announced officially on March 28th, 2012 that the Belene nuclear power plant project was officially cancelled. This official announcement come after 10 years of fight and more than 25 years of history for one of the oldest and most controversial nuclear dodgy deals in Europe. 

2012-03-28 00:00:00 | Belene project will not proceed

Per Bulgaria's Deputy Finance Minister Vladislav Goranov, the Belene nuclear power plant will not be constructed.  A natural gas power plant will be built in its place instead. Read more here.

2011-08-22 10:34:02 |

August 2011 - The financial working group on Belene NPP project is behind the working schedule. NEC has has said that due to these delays it will be impossible to keep to the fixed term of September 1.  The final contact will be reached and the contract signed based on the negotiations held by the working group. Read more here.

On April 11, 2011 a consulting contract was signed between the Bulgarian government and the UK-based company HSBC. The consultation consists of a financial analysis of the project for the construction of the nuclear power plant. According the Bulgaria's Cabinet and Prime Minister Boyko Borisov, the results from the financial appraisal will make the government's final decision on whether or not to go ahead with the project.

The formal opening ceremony of beginning construction works at the Belene site took place on September 3rd, 2008. This appeared only to be a PR stunt and apart from removal of usable materials from the old project and the erection of administrative buildings and a visitors centre outside the fence of the power station, no construction has taken place so far. The first unit is planned to be constructed between early 2010 and December 2013, and the second unit between Summer 2010 and July 2014.

Financial consultant BNP Paribas' contract ended 31 December 2009 without finding any interested investors for the Bulgarian 51%. The then time Bulgarian government then opened negotiations with the Russian government for a 3,8 Billion Euro loan with the condition of a 100% Bulgarian government guarantee. Greenpeace pointed out to the European Commission that this would be illegal state aid.

The Bulgarian government also poored 300 Million Bulgarian Leva extra capital in the Bulgarian Energy Holding with the explicit aim of being used for the Belene project. Greenpeace filed a complaint for illegal state aid to the European Commission, which is currently under investigation.

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In 2008, the German utility RWE was chosen as strategic investor with a foreseen stake of 49%. After heavy international public criticism during most of 2008, the company started to look for partners in order to dillute the risk. Electrabel / GdF Suez withdrew its interest in February 2009. Since then, RWE became the target of a strong public campaign to withdraw its part, culminating in open critique from some of its large shareholders during the 2009 AGM. The company announced not to invest a single Euro into the project before there was full clarity about the financing of the Bulgarian 51%, it would be promised full control over the quality of the project, commission new seismic studies and start talks with other possible partners to spread the risk. These included InterRAO from Russia, Fortum from Finland and two unnamed Swedish companies. However, Fortum and Vattenfall denied all interest. On 28 October 2009, RWE withdrew from Belene.

With that, Belene is again 100% in the hands of Bulgarian utility NEK.

Since around 2007, the right of centre Blue Coalition opposition party in Bulgaria has taken a critical stance towards the Belene project. The party winning the 2009 elections, right of centre GERB, announced it will not put any government finance into Belene.

After the elections, the new government did a full investigation into the way the Belene project was managed. It found out that the budget of 4 Billion was a lie and that construction costs would become around 10 Billion. It also found out that already around 500 Million Euro had been invested, from which tens of Millions of Euro are unaccounted for. It is rumoured that cancelation of the contract with Atomstroyexport will cost around 800 Million Euro in compensation. The government put the project on hold, pending a complete reorganisation and new feasibility study, which is expected to be finished before the end of 2010.

In the mean time, Russian Atomstroyexport and the Russian government started an offensive to save the project - their first new nuclear project in the EU. It offers to finance the first two years of construction - now estimated on around 4 Billion Euro - which by lack of government guarantee (illegal under EU law and too risky for the Bulgarian budget) would have to be guaranteed by NEK.

The Bulgarian government announced further it is willing to lower Bulgarian participation in the project to as low as 20%. It is unclear, however, who besides Russian InterRAO, who might be allowed to obtain between 15 and 25% of the project, would be interested.

After concern from the EU about too large dependence on Russia, the Bulgarian government announced it would look for a Western European strategic investor. In the mean time Russia increased the pressure on Bulgaria to continue with the project.

In November 2010, Bulgaria chose HSBC as financial adviser to find a new financial model. This happened a few days after Russia made a new cost proposal, which is rumoured to be around 8 Billion Euro. The Bulgarian government is not willing to accept more than 5,5 Billion Euro.

Rumours of Siemens entering the project as strategic investor have so far nor been substantiated, though neither denied by Siemens.