Russia, China and S.Korea vie for Bulgarian nuclear project

CNNC International

20/08/2019 11:54

* Seven parties want to be strategic investors in Belene
    * North Macedonia interested in minority stake, power deal
    * Bulgaria to shortlist preferred bidders in three months

    By Tsvetelia Tsolova
    SOFIA, Aug 20 (Reuters) - State run energy companies from
Russia, China and South Korea are among seven groups interested
in becoming strategic investors in Bulgaria's Belene nuclear
power project, the Balkan nation's energy minister said on
Tuesday.
    Neighbouring North Macedonia has also expressed an interest
in a minority stake and long-term contracts to buy electricity
from the 2,000 megawatt project on the river Danube, estimated
to cost 10 billion euros ($11 billion), Temenuzhka Petkova said.
    Sofia revived the Belene project last year after the
parliament said it should seek investors to make use of the two
reactors it paid over 620 million euros to Russia's Rosatom for
in compensation for scrapping the original project in 2012.
    "There has been a lot of scepticism whether there will be
interest at all for the project. With the applications we got
this is no more, because these are some of the global leaders in
the nuclear energy," Petkova said.   
    She said Rosatom, China's CNNC  2302.HK  and Korea Hydro &
Nuclear Power Co (KHNP), a subsidiary of Korea Electric Power
Corp  015760.KS , had filed applications.  urn:newsml:reuters.com:*:nL5N25F3ST    
    A consortium including Czech firm Vitkovice Heavy Machinery;
two Bulgarian bidders; and a Germany-registered company have
also expressed an interest in being a strategic investor.
    Meanwhile, France's Framatome, a unit of EDF  EDF.PA , and
General Electric  GE.N  have filed letters saying they are
interested in providing equipment and in arranging financing for
 the project, Petkova said. 
    One Bulgarian energy firm is eyeing a minority stake and a
long-term electricity purchase contract. Another is looking only
for a minority stake and a third company wants a power purchase
deal. 
    Bulgaria will shortlist candidates in three months and ask
them to file binding bids. It will not hire a consultant to
advise it on the process, which it hopes to wrap up in May 2020.
The project is hoped to be completed around ten years later.
    The preferred bidders will be asked to consider the declared
interests for minority stakes and power purchase contracts.   
    Bulgaria cancelled Belene seven years ago after failing to
find investors and under pressure from the United States and the
European Union to limit its energy dependence on Russia, which
had been under contract to build the plant.
    Critics of the project, first launched in 1980s, say it has
been a vehicle for corruption for decades and that the
investment does not justify the benefits.
    Sofia plans to keep a blocking stake in the venture and be
involved in the site, the nuclear reactors and the acquired
licences. But it will not extend state or corporate guarantees
or offer to buy electricity from the plant under long-term
contracts with preferential rates.
    ($1 = 0.9030 euros)

 (Reporting by Tsvetelia Tsolova; Editing and Mark Potter)
 ((tsvetelia.tsolova@thomsonreuters.com; +359-2-93-99-731;))