Bulgaria's NEK to get government loan to help pay €620mn Belene nuclear project debt

Bulgaria's NEK to get government loan to help pay €620mn Belene nuclear project debt
By bne IntelliNews September 20, 2016

The Bulgarian cabinet has approved a bill envisaging an increase in the budget of the energy ministry to pay the obligations of state-owned National Electricity Company (NEK) connected with the cancelled Belene nuclear power plant project, a statement on the cabinet’s website said on September 20.

In June, an arbitration court in Geneva ruled that NEK has to pay up to €620mn to Russia’s Atomstroyexport, a unit of Rosatom, for equipment already produced for the Belene project. The Belene power plant was to be located on the Danube River and was planned to have two 1,000 MW reactors. The Bulgarian side is also currently being charged a daily penalty interest of €167,000.

An undisclosed amount of funding will be extended to NEK in the form of an interest-free unsecured loan. The company will receive the aid after approval from the European Commission.

On September 10, Rosatom insisted that the debt must be settled soon.

Energy Minister Temenuzhka Petkova said that the exact amount owed was €629mn as of September 20. If no payment is made, the debt amount will reach €646.2mn by the end of the year.

The minister added that the Bulgarian side has objections to the amount of the interest that have been filed with the arbitration court. On September 16, a Bulgarian-Russian intergovernmental commission reached an agreement on the repayment of the full amount of the principal of €400mn, Capital Daily reported.

Related Articles

China’s HNA to invest €160mn in Bulgaria’s Plovdiv Airport

A consortium of China’s HNA and Dutch-registered Plovdiv Airport Invest BV, which has won the tender for a 35-year concession of Bulgaria’s Plovdiv Airport, ... more

Polish-registered GTC takes over Mall of Sofia

Real estate investment group GTC, registered in Poland but operating in three other capitals in the region, announced on April 27 it has acquired Mall of Sofia in ... more

Bulgarian PM expects country to join Eurozone waiting room within a year

Bulgarian Prime Minister Boyko Borissov said on April 26 he expects his country to join the Eurozone waiting room — the European Exchange Rate Mechanism (ERM2) — within a year.  Bulgaria, ... more

Dismiss