The Kozloduy Nuclear Power Plant (NPP) has produced a record-breaking total of 16 314 271 ÌWh of electricity in 2011. The output volume for 2011 sets a a record in the operation of the 1000-MW reactor blocks 5 and 6 and tops the 2008 ceiling by 549 166 ÌWh, the Kozloduy NPP said in a statement. The results place the Kozloduy NPP on a par with the world's leading nuclear power stations using this type of reactors. The coefficient of use of installed capacity in 2011 exceeded 93%, which is another record for the two units' years in operation. The 15 267 560 ÌWh production plan for 2011 was fulfilled as early as December 11, the Kozloduy NPP boasted.
Source: Darik Radio (04.01.2012)

Traikov: It is logical to construct a new reactor at NPP Kozloduy The concept for the construction of a new reactor at NPP Kozloduy is the most logical one. I do not know why this idea has not been implemented so far, while a new operational site for NPP Belene has already been selected, said yesterday on BNT (Bulgarian National Television), Minister of Economy, Energy and Tourism, Traicho Traikov. The sites already set-up have appointed staff and have developed infrastructure, commented also the Minister of Economy. According to him, NPP Belene is a wonderful base for the development of all other nuclear power generation. "There will be some new sites at NPP Belene, but NPP Kozloduy seems the more logical, inexpensive and reasonable place for the construction of a new reactor," stated Traikov. There is a pre-feasibility study for NPP Kozloduy, which showed that there are conditions for the construction of a new unit and this will be more cost-effective than building a reactor at a new location. The conditions for doing business depend both on our own efforts and the situation around us, said the Minister. According to him, it appears more modern, safer and more attractive nowadays to comment on catastrophic scenarios. I am convinced that the EU regulators, on which nuclear disaster prevention depends, will take the right steps. I support the moderately optimistic scenario. Nowadays, forecasts are extremely risky. Nevertheless, future estimates should always be based on set objectives and facts in the budget, added the Economic Minister. Besides, we have already started and are able to apply more efficient measures in order to alleviate the administrative burden, facilitate business conditions and grant the option of preferential loans for small and medium-sized businesses. All measures that could ease the economic situation of the business sector. Of course, there are factors beyond the control of the GERB (Citizens for European Development of Bulgaria) government, added Traikov and clarified that it came down to the judicial system. For example, predictability and certainty are very important for companies, but when a commercial dispute is referred to the court, all kinds of systems operating in the Bulgarian state become interrelated with respect to the prospects for business development.
Source: Class (06.01.2012)

Minister Traykov: New reactor in Kozloduy is more logical than Belene NPP “The construction of a new reactor on the territory of Kozloduy NPP is more logical, much cheaper and more reasonable than the construction of a new nuke on the site of Belene NPP,” Bulgaria’s minister of economy and energy, Mr Traycho Traykov said. “To me, it is not understandable at all why Belene was once chosen for the construction of a nuclear power plant,” Minister Traykov added. The price of a new reactor on the territory of Kozloduy NPP will be half the cost of a reactor at Belene NPP as the working Kozloduy NPP has excellent infrastructure, well-trained personnel, excellent experience, etc., things which have to be established and constructed at the new Belene nuke site. In Minister Traykov’s words, the reason for choosing Belene as a place for a future nuke is all but logical and well-grounded. From the point of view of seismic safety, Kozloduy is a better variant than Belene, according to the Minister. He reminded that the most important issue with regard to the construction of new nuclear capacities was safety. Traykov, however, emphasized that all these should not be interpreted as giving up în the Belene project. He believes the activities on the project have already been put in schedule and that the Russian partners showed commitment in their part of the work. Both parties on the project believe that by the end of March the uncertainties would be removed and on that base a decision on Belene?s future would be taken. Traykov added that Belene grounds were ideal for all other sorts of economic activities as they were in close proximity to water, availed of excellent power supply, infrastructure etc. “So, there will be for sure something in Belene, even it is not a nuke,” Traykov was explicit.
Source: Standart (06.01.2012)

Kozloduy Nuke’s Safety Is out of the Question Bulgaria’s Kozloduy NPP will withstand most severe natural calamities. Stability under extreme external influences such as earthquakes, strong winds, floods, power loss, and other severe accidents have all been assessed during the stress tests in the nuke, said Head of the Nuclear Regulatory Agency Sergey Tsochev. Following the accident at earthquake-stricken Japanese NPP "Fukushima," all European nuclear plants were mandated to make similar stress checks to identify measures to improve safety. The experts found that the "Kozloduy" meets the safety requirements for maximum earthquake. It was proven that "Kozloduy NPP" ensures safety for maximum seismic influences and has large resources regarding earthquakes stronger than those for which it was designed.
Source: Standart (06.01.2012)

Frauds for more than BGN 1.7 million in NPP Kozloduy were discovered by an check-up of the Public Financial Inspection. The case concerns deals in dwellings and garages of the power plant signed in 2007-2008. Frauds of application of the Public Procurement Act were registered in the territories of NPP Kozloduy and Kozloduy Municipality. Damage to over BGN 460 thousand even are established for violations of the Accountancy Act, were established during the internal audit review in Burgas-based Blagoustroistveni Stroeji. The check showed errors recorded in the content and compilation of financial statements of the company. Violations in the conduct of public procurements were also found in Pernik, Pomorie, Tsarevo, Malko Tarnovo, Mokresh, Gramada, and others.
Source: Standart (11.01.2012)

Five more electricity retailers will be supplied by the NPP Kozloduy in the first half of 2012, announced Executive Director Alexander Nikolov. After the scandal of the last few days because of reduced amounts of electricity from nuclear power plants for businesses and allegations of large plants for artificial raises of the price for them, the plant's management has decided to provide an additional 80 megawatts. They will go to five dealers which have most strongly expressed dissatisfaction that had failed to qualify at the auction held in December. These are CEZ Trade, EVN Trading, E.oN Bulgaria Trading, Enemona Utilities and Energy Supply. During talks with them Alexander Nikolov has promised to provide electricity but asked them to update their bids submitted earlier for the auction in December. During the auction held in December the minimum price announced by NPP Kozloduy for the proposed electricity was BGN 69 per megawatt.
Source: Standart (12.01.2012)

Bulgaria to freeze construction projects for solar parks and wind-powered generators until 2020 Bulgaria will not develop projects for the utilisation of expensive renewable energy until 2020, stated Prime Minister Boyko Borissov at an official lunch with the American Chamber of Commerce yesterday. Nothing forces us to harness our entire power generation capacity because the cheap energy generated by the NPP Kozloduy is beyond any competition due to its low price. This sector has been tolerated for a long time at the expense of other economic sectors. Invest in sectors which are profitable for Bulgaria, recommended the Prime Minister to the representatives of US companies attending the official meeting. According to him, it is unfair to Bulgarian citizens, who are the most impoverished in Europe, to be drained financially because the consumption of the more costly renewable energy is too expensive for them. We can invest in the use of biomass for power generation, as well as in the construction of hydropower plants, but not in solar parks and wind-powered generators, specified Borissov. He cited the data of 2011, which showed that Bulgaria is the only EU member-state which has increased its biomass production. Consequently, this "mixed energy" will be consumed by the end user and the final price might become too high if the balance of our energy system is disturbed, explained the PM. I will deliver not so delicate an appeal, compared to that of the Energy Minister, Traicho Traikov: "Stop pressing the Bulgarian ministers on resolving this issue," said the PM. I will agree to the budget allocation of BGN 1,000 should the Bulgarian companies and citizens improve their energy efficiency policy by investing in such renewable power sources and residual energy and transferring the latter to the energy network for general consumption. I am unable any longer to protect the airports from the construction of solar parks, complained he. Even during his visits to the towns of Silistra and Targovishte, he discovered that the town mayors have adjusted the airport infrastructure for the operation of solar parks.
Source: Class (13.01.2012)

European investor to express interests in Belene NPP within days “A European investor has shown interest in the financing of the Bulgarian 51% stake in the Belene Nuclear Power Plant (NPP),” said for Klassa daily Bogomil Manchev, Chairman of the Bulgarian Atomic Forum, but he did not reveal who the investor is. “However, company’s representatives are going to visit Bulgaria literally within days,” said Manchev. The Finnish Fortum company and the French Altran Technology consultancy have shown interest in participating in the Belene NPP project so far ."They wish to purchase shares larger than 1%, but this requires that the Bulgarian Government makes the decision to establish the Belene project company. “This would not cost anything to the Bulgarian side,” experts say. “Fortum can take a stake of over 20% in the future company and Altran - about 10%. So, the Russian side will remain with a stake of about 15%, which is acceptable by the EU,” commented Manchev further. According to him, Brussels does not accept the current structure of the project - the Russian Atomstroyexport to build the plant, while the Rosatom company to become an investor in it. “In practice, the Russian side will manage the plant initially, until the loan for its construction is paid,” said Manchev. The EU was not again the project while the German RWE was a strategic investor in the plant, and even the technology was approved. The German company, however, withdrew from the project two years ago, because of worries about the structure of the project company. “The project for the construction of the Belene NPP could be terminated due to political reasons,” said yesterday for Klassa daily other sources from the energy circles. According to them, it is expected that the European Union will demand from Bulgaria to cancel the construction of its second NPP because it applies Russian technology.
Source: Class (17.01.2012)

The export of electricity from Bulgaria was stopped today by an order of Minister of Economy, Energy and Tourism Traicho Traikov who explained this measure with the ongoing strike of miners at the Maritsa Iztok Mines. According to Traikov, there is sufficient electricity for the domestic market and there will be no rationing. However, electricity traders on the open market are expected to suffer losses because it is not clear when the export of electricity will be resumed. Currently, Bulgaria exports 800 MW mainly to Greece, Turkey and Serbia, and the three countries meet their consumption needs with imports from Bulgaria. Maritsa Iztok 2 TPP stated that this morning, the miners stopped 20 waggons with coal from the Pernik mines. “Blackmail cannot be a way of solving problems,” Traikov commented on this occasion. The police will be relied on to ensure the transportation of compositions with coal. According to Traikov, the motives for the strike have expanded and already include private corporate interests. Coal from Pernik is currently supplied not only to Maritsa Iztok 2 TPP, but also to Brickel TPP. Representatives of the state-owned power station, Maritsa Iztok 2, explained that their coal stocks will last 14 days. By an order of the Electricity System Operator (ESO), unit 7 of the power station is expected to stop operation on Saturday. ESO explained that 800 MW of TPP capacities in the East Maritsa basin will be decommissioned tomorrow by order of Minister Traikov – at AES Galabovo TPP, Maritsa Iztok 2 TPP and KonturGlobal Maritsa Iztok 3. However, the Ministry denied that information. The decommissioning of TPP capacities is due to the difficulties with the supply of coal. Maritsa Iztok 2 TPP already explained that it will suffer huge financial losses because of stopping operation. The export of electricity is one of the main items in the proceeds of the National Electric Company (NEK) and without it the public provider will have to ask for a price increase.
Source: Class (21.01.2012)

Minister Traikov: The most important thing is to extend the service life of Kozloduy NPP “The number 1 energy project for our country is to extend the service life of units 5 and 6 of the Kozloduy NPP, Minister of Economy, Energy and Tourism, Traicho Traikov, said on bTV today. According to him, this is the cheapest way to get energy at present. The Government aims to extend the service life of the reactors by at least 10 years, which will allow unit 5 to operate until 2027, and unit 6 – until 2029. Commenting on the project for the construction of the Belene NPP, Traikov said that negotiations with the Russian side are still going on. Klassa daily has already posted that the Finnish company Fortum is interested in buying a 20% stake in the project. “This will become a fact for me when we have a firm commitment on the part of the company, including signed documents and share participation,” stated Traikov. He added that the Bulgarian and the Russian side have not agreed whether there should be a fixed price for the project or escalation indices would be used. Besides Fortum, an interest in participating in the project has been expressed by the French company Altran Technology. According to Traikov, the losses from the strike at the Maritsa Iztok Mines are less than BGN 10 mln and will not affect electricity prices. According to the syndicates, TPPs’ coal reserves are expected to be replenished within two weeks. “In my opinion, this was a useless strike, needlessly increasing the existing tension and I am convinced that the miners were misled,” added Minister Traikov.
Source: Class (24.01.2012)

Extending the life of the fifth and sixth unit of NPP "Kozloduy" is energy project N1 in Bulgaria Extending the life of the fifth and sixth unit of NPP "Kozloduy" is energy project N1 in Bulgaria, because it is the cheapest way to generate power energy. That said the Minister of Economy and Energy Traicho Traikov before btv. The licenses of both units expire in 2017 and 2019. Intentions are the Nuclear Regulatory Agency to extend them by another 10 years, but for that purpose the nuclear plant must submit a program for the measures that would be taken. NPP "Kozloduy" already selected a consultant for extending the life of reactors. For that purpose it should be consulted by the Russian manufacturer "Gidropress." Asked whether Russia will not blackmail Bulgaria for the two 1000 MW units in result of delay in the construction of NPP "Belene" Traikov said: "It would be naive and child behavior." Negotiations for NPP "Belene" with Russian state-owned company Atomstroyexport for inflation-adjusted price and appreciation of the materials continue. On this issue negotiations go for a second year without significant success for both parties. The Russian side insists on to be taken into account the inflation in Russia and for Bulgaria - reported by Eurostat inflation. The cost of the project also remains unclear. Initially, the Russian contractor offered a fixed price of 6.8 billion euro, but Bulgaria wants price about 5 billion euro.
Source: investor.bg (24.01.2012)

Belene NPP Construction to Create 40,000 Jobs The construction of Belene NPP will open about 40,000 jobs for a period of 6 to 8 years, reads a declaration in support of Belene NPP construction, which was sent to PM Borissov and his ministers. The declaration also reads that the project is not only Russian as big western companies like French Areva and German Siemens tale part in the project. The authors of the declaration appeal to the cabinet to make a decision as soon as possible for the real start of the Belene NPP construction. According to the declaration, Bulgaria’s national interest will be defended and the development of Bulgarian nuclear experts and scientists will continue. The construction of Belene nuke will also avoid the sharp increase of the price of power, both for the households and the business.
Source: Standart (27.01.2012)

Businesses demand rules for the development of the free market of electricity The State to present a roadmap on how the quotas of electricity for the free market will be increased in the future, demanded large companies in the country after their meeting with trade unions, suppliers and producers of electricity. There is an artificial shortage of energy on the open market in Bulgaria after the recent auctions for electricity from the Kozloduy Nuclear Power Plant (NPP) in December. “The provided 250 MW were insufficient and this move increased energy prices, which led to closure of production facilities,” said Konstantin Stamenov, Chairman of the Bulgarian Federation of Industrial and Energy Consumers. According to him, if the large companies are not able to cope with the price increase in electricity, then the small and medium-sized businesses could not be expected to do it either. “The Government should be more focused on the Bulgarian industry, rather than on the export of electricity,” said Anton Petrov, Chairman of the Bulgarian Association of the Metallurgical Industry. The electricity distribution companies also demanded an increase in the quotas for the free market. The Kozloduy NPP and the Maritsa-Iztok 2 TPP are currently the only legitimate suppliers of electricity on the open market. Deputy Minister of Economy, Energy and Tourism Delian Dobrev explained that the listing of a 10-15% stake of the Bulgarian Energy Holding on an international stock exchange was being considered.
Source: Class (30.01.2012)

Consultative Board to monitor the development of the energy market A Consultative Board for the free energy market in the country will be established. This became clear after a working meeting at the Ministry of Economy, Energy and Tourism with the participation of Economy Minister Traicho Traikov and representatives of the Confederation of Independent Trade Unions in Bulgaria (CITUB) and two employer organisations – the Bulgarian Industrial Association (BIA) and the Confederation of Employers and Industrialists in Bulgaria (CEIB). The Board will start work next week. “I promised that a Consultative Board will be set up in order to guarantee the interests and competitiveness of the Bulgarian industry. They should not contravene the requirements of the free market so that our country does not become subject to punitive procedures,” said Minister Traikov. “The claims on the part of certain industrial companies are connected with power plants which organise tenders for the sale of electricity, no matter whether it is intended for the domestic or the foreign market. Theoretically, tenders in a free market should not be a problem since it should not matter whether the electricity is for domestic use or for export when the market is free,” explained Traikov. “We discussed a pact on industrial stability, similar to the Financial Stability Pact. It’s no less important for us to have a pact on industrial stability,” said Traikov. We have a market and market participants. For me, in my capacity of principal of the Kozloduy NPP and the Maritsa-Iztok 2 TPP, it is important that the rules are fair and achieve the best possible prices because the money of Bulgarian taxpayers is spent on these power plants. In this particular case, some industrial consumers have claims on the power plants,” commented Traikov. BIA’s Executive Chairman, Bozhidar Danev said that his organisation had proposed that the price on the regulated market of electricity should change in accordance with the price on the free market. The Consultative Board will include representatives of businesses - large consumers of electricity, power plants generating electricity for the domestic market, syndicates, the executive power and MPs,” said Nikolay Nenkov from CITUB.
Source: Class (01.02.2012)

Russia guarantees gas supplies to Bulgaria Russia guarantees gas supplies to Bulgaria and the Balkans, became clear after a meeting between Minister of Economy, Energy and Tourism, Traicho Traikov, and his Russian counterpart, Sergei Shmatko. Traikov is on a visit to Moscow and the Bulgarian governmental delegation is headed by Deputy Prime Minister Simeon Djankov. Russian gas supplies to the region were reduced due to the increased consumption as a result of the bad weather in Europe. “There will be no problems with the delivery of the ordered quantities for Bulgaria and the other European countries,” assured Shmatko. The two ministers attended the work of the joint Bulgarian-Russian Commission for Economic, Scientific and Technical cooperation. Traikov and Shmatko also discussed the development of the Belene NPP project and the construction of the South Stream gas pipeline. The contract for building a second nuclear power plant in Bulgaria expires at the end of March and the financial consultant on the project is still analysing the profitability of the project. Another meeting for the construction of the South Stream gas conduit is expected to be held in Sofia by the end of this month with the participation of Alexey Miller, CEO of Gazprom. Shmatko added that Russia was determined to build the gas pipeline, regardless of the development of relations between Moscow and Kiev. The two ministers also discussed the possibility of extending the service life of units 5 and 6 of the Kozloduy NPP. Their modernisation cannot be made without the participation of Russian companies because they have produced the generators. The order for the evaluation of the remaining service life of the units was won by a Russian-French consortium, including the companies Electricite de France and Rosenergoatom. It is not clear whether the construction of the Burgas-Alexandroupolis pipeline was discussed during the visit. (Klassa)
Source: Duma (08.02.2012)

Sergey Shmatko: Gas Deliveries for Bulgaria Ensured Russia will deliver the negotiated volumes of natural gas and Bulgaria won't suffer another gas crisis, Russian Minister of Energy Sergey Shmatko promised during the meeting with Bulgarian counterpart Traycho Traykov and vice premier Simeon Djankov. The three of them have discussed issues of mutual interest - extending the life of units V and VI at Kozlodyu nuclear power plant, the construction of Belene nuke and South Stream project. However, no details on the talks on Belene project have been announced till late afternoon yesterday. Minister Shmatko assured Bulgarian ministers that Russia will continue its work on South Stream project notwithstanding its relations with Ukraine. During the talks was discussed the flow of Russian tourists to Bulgaria and the growth of trade between the two countries. Sergey Shmatko has thanked Bulgarian ministers for the abolishment of visas for Russian citizens, who already have a Schengen visa. Meanwhile the Bulgarian part confirmed there is no problem with natural gas deliveries from Russia.
Source: Standart (08.02.2012)

U.S. military pension fund offers $7 bn for 25% of Belene NPP “An American investor expressed interest in participating in the Belene NPP project,” Minister of Economy, Energy and Tourism Traicho Traikov said today. He specified that the interest had been expressed during talks and the Government expected to receive a written letter of intent soon. This is a U.S. military pension fund, Klassa learnt from informed sources. The company wants to invest $7 bn in the construction of a second nuclear power plant in Bulgaria and to buy a 25% stake in the future Belene Project Company. It is is also ready to finance Bulgaria’s participation in the project, which is expected to be 51%. The other candidates to buy shares in the future company are the Finnish Fortum, the French Altran Technology and the Russian Rosatom. Fortum is also expected to ask for purchasing of more than 20% of the shares in the Belene Project Company. “The investor has to sign a confidentiality agreement which has already been drafted and the panel of financial experts will analyse the aspirations and possibilities of the candidate and its proposal,” explained Traikov, adding that it is still early to draw conclusions about the intentions of the investor. Traikov’s statement was made upon his return from Moscow. Before that, he took part in talks with U.S. Secretary of State Hillary Clinton during her visit to Bulgaria. The Minister explained to Nova TV that three main issues for the construction of Belene NPP were yet to be specified with the Russian side. These were: the risk sharing, the price of the credit and the so-called price escalation index for the construction of the plant. Traikov did not rule out the option of building one rather than two new generators at the Kozloduy NPP. No comments to this article. Add the first one.
Source: Class (09.02.2012)

Bulgargaz SPJSC demands a 27% increase in natural gas prices as of April The state-owned company Bulgargaz SPJSC demanded a 27% increase in gas prices as of April 1, announced the company during the presentation of its forecasts. The shocking increase is predetermined by the oil price hikes on the Mediterranean market, as well as the higher dollar exchange rate to the Euro. If the forecast of Bulgargaz is approved by the State Energy and Water Regulatory Commission (SEWRC), as of April, natural gas prices will increase by BGN 166.27 per 1,000 cu m to BGN 786.43 per 1,000 cu m. A similar price hike will inevitably raise the price of domestic heating by at least 20% on average. An additional reason for higher fuel prices is the fact that Bulgargaz SPJSC must restore its reserves of natural gas in the gas repository near the village of Chiren. The fuel stored there is only used in the winter season to cover domestic consumption and, this year, the gas volumes used are larger than usual because of the cold weather. Bulgargaz representatives demanded a 17% increase of natural gas prices as of January but SEWRC estimated that the hike should be no more than 5% in order to prevent an increase in the price of domestic heating. Bulgargaz maintained that the regulations of the Commission resulted in the poor financial condition of the company. The company will submit its final request for an increase in natural gas prices on March 9. So far, SEWRC has never accepted the company's arguments and has striven to limit substantially the price hikes. Meanwhile, Sofia DHC (District Heating Company) announced that January's heating bills for Sofia residents will be 17% higher month-on-month. The reason is the cold weather, especially at the end of January, when the average daily temperature reached minus 13 degrees. The company added that 65% of their customers will receive heating bills of less than BGN 150.
Source: Class (13.02.2012)

Municipalities and state-owned companies to be granted ˆ110 mln for energy efficiency “The International Fund Kozloduy will allocate ˆ110 mln for the improvement of the energy efficiency in Bulgaria,” said Minister of Economy, Energy and Tourism Traicho Traikov. Most of the funds - ˆ61.5 mln - will go to state-run energy companies: the National Electric Company (NEK), the Electricity System Operator (ESO), the Maritsa Iztok Mines, Bulgartransgaz and the municipal Central Heating Utility in Sofia. The funds will be spent on rehabilitation and replacement of energy capacities and on improvement of the electricity distribution network. The remaining ˆ48.5 mln will be invested in energy efficiency projects, for which municipalities will apply. The money will mainly be spent for renovation of municipal and state-owned buildings and for installation of street lighting in urban areas. Minister Traikov explained that the municipalities could apply for financing until the end of March. Depending on the specific project, the grant aid will cover half of its costs or the entire undertaking. Municipalities have submitted projects worth almost BGN 1 bn so far but not all of these can be supported by the Fund. If unabsorbed money remains, applications will be accepted during the next stage, until August 31. The Minister urged the local governments to hurry with their applications because the financial resource is likely to be exhausted after the first stage. “The Fund has earmarked another ˆ10 mln to subsidise households that want to install gas supply to their homes”, added Traikov. About BGN 3,000 per household will be allocated on average. This programme is expected to be launched at the end of June, 2012 at the earliest. “The construction of gas heating installations at people's homes will be financed”, explained Deputy Minister Delyan Dobrev. So far, the Government has not projected any funds to support the use of electric cars.
Source: Class (16.02.2012)

NEK demands at least a 6% higher electricity price “The National Electricity Company (NEK) will demand that the State Energy and Water Regulatory Commission (SEWRC) increase the electricity wholesale price by at least 6%,” told Klassa daily the company’s Executive Director Michail Andonov. According to him, this step is needed because of the more expensive electricity produced by Thermoelectric Power Plants (TPPs) and Renewable Energy Sources purchased by the public service provider . Because of the cold weather, the company is currently buying large amounts of electricity from TPPs at a price which is several times higher than the price of electricity from the Kozloduy Nuclear Power Plant (NPP). Andonov added that electricity consumption in the country increased by about 20%, due to the low temperatures. The cold reserve of the country was included in the system recently, which further increased the price of electricity bought by NEK. The company’s internal reserves are insignificant because of the cancelled exports of electricity. NEK's highest revenues come from the export of electricity. In this way, it manages to cover the losses from the sale of electricity on the regulated market. The documents for the requested increase will be submitted to the energy regulator, despite the fact that SEWRC experts explained they will not accept any increase in the wholesale electricity price before July 1. If the demand of NEK is approved, there is no way for the price increase for end users to be kept at 7-8% as of the middle of the year, as planned by SEWRC. “NEK has reached an agreement with French BNP Paribas on rescheduling the loan of ˆ250 mln, borrowed for the construction of the Belene NPP. A draft document has already been sent to the Bulgarian Energy Holding and SEWRC for consideration. The payment will be deferred for one year,” said Andonov.
Source: Class (17.02.2012)

Kozloduy NPP requests from Russia information about the quality of its equipment The Kozloduy Nuclear Power Plant (NPP) requested additional information from the company producer of its high-pressure heaters, installed at the VI unit of the plant, announced company’s officials. The issue with the facilities arose after the Russian media released the news that the heaters had been produced from steel of lower quality in the Russian ZiO-Podolsk machine-building plant and that the directors of the company are currently being investigated by the authorities. The managers of the Kozloduy NPP sent a request to the company supplier in Bulgaria - ATP Atomtoploproekt and to the manufacturer of the equipment in Podolsk, asking for details on the control of the equipment and the used materials. The plant is able to send experts to Russia in order to analyze the situation. Meanwhile, experts from the Russian Atomenergomash company, the parent company of ZiO-Podolsk, announced that the produced heaters met all quality requirements. Officials from the Bulgarian NPP explained that the systems had nothing to do with the safety units of the block.
Source: Class (27.02.2012)

UDF appeals for suspension and audit of the NPP Belene construction project The construction of NPP Belene should be suspended immediately, demanded yesterday UDF (Union of Democratic Forces) leader Martin Dimitrov. He explained that the current negotiations conducted with the Russian side on the plant's construction continue to be held in the dark. In late March, the extended deadline, within which a decision must be issued as to whether the NPP Belene project will be implemented, expires, added Dimitrov. In 2006, the Russian company Atomstroyexport offering a bid of ˆ3.977 bn was selected as the project contractor. In 2011, the Russian company offered the amount of ˆ6.3 bn as the fixed price for the plant's construction. In turn, the financial project adviser - the London-based HSBC Bank - has been making its analyses on the extent of the project's cost-effectiveness in view of the new price. According to the initial data, the NPP could be launched into profitable operation since this makes sense due to the lack of energy-generating facilities in the region. Besides, the UDF demanded that Prime Minister Boyko Borissov present the HSBC analysis to MPs instead of the GERB (Citizens for European Development of Bulgaria) government evading the questions posed by the Bulgarian Parliament. The Prime Minister must publicly disclose the contents of the report, as well as all possible future actions of the Cabinet on this important project, reckoned Dimitrov. According to him, if the government continues to hide information from Bulgarian citizens, it will repeat the disadvantages of the natural gas supply contracts unfavourable for Bulgaria, which were signed by BSP (Bulgarian Socialist Party) ministers with Russia. The right-wing party also demanded that a complete audit be carried out on the hitherto implemented construction works of the NPP Belene project. It would be better if the billions of leva that the Bulgarian state will allocate for the construction of the NPP are invested in the improvement of the energy efficiency of our economy and the homes of Bulgarian citizens, explained Dimitrov.
Source: Class (14.03.2012)

The future of the Belene NPP project still unclear The reactor, designed for the first unit of Belene NPP, has been finished and is already operating in a Russian plant, stated yesterday before BNR (Bulgarian National Radio) Delyan Dobrev, who is allegedly the future Minister of Economy, Energy and Tourism. He explained that all the costs for the tests on the reactor would be covered by the state-owned NEK (National Electricity Company). "In fact, we were refunded with a lower amount of resources, compared with the sum of investment we made," retorted Dobrev. In his word, the GERB (Citizens for European Development of Bulgaria) government is again in a dire situation because a new tender contest for the completion of the units has been launched and a final bid was received on the construction of a new plant. Besides, a final decision was issued on the parameters of the deal for construction of a site without knowing its construction cost. Dobrev added that in order for a new decision to be issued on the future of the project, HSBC must submit its financial analysis and it should be made public. The analysis of the bank is expected to be ready within a month. It will estimate the likely demand index of the region in terms of electricity generated by the new power plant, as well as its indicative cost. If our country gains no profit from this project implementation or should sell the electricity at an extremely high price, the investment will be meaningless,'' commented Dobrev. Yesterday, Borissov stated that Russia had zero chances of becoming an energy partner of Bulgaria on the Belene NPP project. Before TV7, he announced that he would bear a personal responsibility for the final decision on the topic. It is imperative that this reactor should be mounted at the Belene NPP construction site, commented on BNR Yordan Kostadinov, former head of the plant near Kozloduy. A decision on the increase of the capacity of the 5th and 6th units of Kozloduy NPP is also expected to be made. This is a very important issue. In fact, the issue concerning the plant where the reactor designed for the Belene NPP project will be mounted is crucial for the Bulgarian energy sector. Bulgaria is about to put an end to its nuclear power generation, stressed Kostadinov. He predicted that in 10 - 15 years Bulgaria might be paying one of the highest prices of energy in Europe.
Source: Class (19.03.2012)

Dimitar Ivanov, energy expert, one of the founders of the Movement for Energy Independence, voiced its standpoint on NPP Belene, saying that it was a corrupt project that would enslave Bulgaria economically and was serving the corporate and political interests of Russia and the Bulgarian energy mafia that were aspiring for hundreds of millions in profits from the future electricity export. Referring the matter to the Parliament was pointless, as it had become evident from the shale gas matter, as a strong Russian energy lobby was planted there as well, the 24 Chasa daily informs. Pressure on Gazprom had to be intensified towards a reduction of prices until the end of the month. There was no logic in expecting a 10-15% lowering of gas price from Gazprom and an increase of about 10% mentioned by the State Energy and Water Regulatory Commission (SEWRC), while at the same time Bulgargaz was demanding for a 26% growth in its cost.
Source: 24 chasa (19.03.2012)

Bulgaria missed the oportunity to partcipate in the Blue Stream gas pipeline project. Will the implementation of the construction projects of NPP Belene and South Stream gas pipline fail as well? Bulgaria is not a resource-rich country and, therefore, will always be dependent on external supplies, regardless of the fact whether it comes down to natural gas, oil or other basic materials. In contrast to renewable energy sources which generate expensive electricity and coal-fired power plants which pollute settlements, for our country, NPPs (nuclear power plants) remain a reliable source of power generation . Small countries like Bulgaria cannot be energy independent and, therefore, we need a well-developed nuclear energy sector. The issue of mutually beneficial energy interdependence between individual countries is of prime importance. This was also stated in the report of scientists from the Centre for Strategic and International Studies at the Massachusetts Institute of Technology. According to them, the interdependence between consumers and producers should be used as a tool for finding common solutions on common global energy problems, including environmental protection, safety and economic considerations. A number of experts in the branch agree that economic development needs nuclear electricity generation because it is the state-of-the-art technology in the global energy sector. And each manufacturing sector in the 21st century needs electricity, and cheap electricity at that. And like every other technology, there is also risk involved and the ecological disaster resulting from the Japanese nuclear power plant Fukushima can serve as an example of mismanagement. It is a fact that, a year after the nuclear tragedy, Japan insists that its reactors be put into operation again. The reason is that the country generates electricity which is needed for the production of output, which Tokyo can sell on world markets at competitive prices. There are more than 190 countries worldwide and none is energy independent. This objective is impossible to achieve - as simple as that. All these countries import energy in the form of refined petroleum products, electricity, natural gas or coal, explained experts. According to them, the interruption of commercial relations concerning trade in energy, with a view of simplifying the relationship between states, is a short-sighted policy . What does this mean for Bulgaria? According to our experts, the Bulgarian government should not pursue energy independence and the Energy Minister is actually responsible for explaining this fact to the Prime Minister and the President. Because, in this way, the unprofitable objective set can lead to over-expenditures as a result of excess supply, followed by the disappointment that the goal cannot be achieved. And in order to remain competitive in the region, we must decide, as soon as possible, on the future of the Belene NPP construction project. Our country should be aware of the fact that June is the deadline for the bid of the French company Areva for the production of electronics for the two Russian units of the new nuclear power plant. At that point, they will not give up their proposal, but will deliver a new one, which will differ from the current price conditions, explained insiders for Klassa daily. If this happens, it is possible that the construction price of the NPP will increase significantly. The logical assumption that the construction project of the NPP Belene reactor might be sold to another contractor means that there is interest in its implementation. And the logical question here is: why should Bulgaria not profit from the electricity generation from that nuclear facility. Experts also warn about the severe winter we had this year as a result of which electricity exports from our country had to be suspended twice. These exports are one of the main budget items for Bulgarian state-run companies. Former Minister Traicho Traikov stated that our country should seek to extend the service life of the 5th and 6th units of NPP Kozloduy, but this does not prevent the progress of the implementation of the NPP Belene construction project. However, the statements that the Russian-designed unit for a second NPP can be transferred to NPP Kozloduy, instead, are untenable because it would mean that the site should be issued a new operational license by the Bulgarian Nuclear Regulatory Agency. The unit itself is heavier than the ones installed there, while the issuing of a new license certificate will take at least seven years and, only afterwards, can the construction of the facility start, explained Head of BULATOM (Bulgarian Atomic Forum), Bogomil Manchev. The CEO of NPP Kozloduy, Alexandar Nikolov stated yesterday on BNT (Bulgarian National Television) that the NPP Belene reactor can be launched into operation at the site of the First NPP, at the earliest, in a 12-year period. Currently, the licensed NPP Belene site has been cited by the EC as a praiseworthy example for its modern design. According to the former CEO of NPP Kozloduy, Yordan Kostadinov, Bulgaria is about to terminate the development of its nuclear energy sector. And that is the ill-intentioned purpose of the economic enemies of Bulgaria. Kostadinov has repeatedly stated that it is high time for a final decision on the the actual fate of the NPP Belene project to be taken, regardless of what it is. The GERB (Citizens for European Development party) government is waiting to receive the financial report of the London-based HSBC London as to whether the electricity generated by the NPP Belene will find a proper market. It was scheduled for this report to be submitted within a month, while the Consultant has already repeatedly explained that the project is economically profitable. This report's conclusion solely should be enough to make "experts" like Doctor Dimitar Ivanov consider seriously tackling the matter in which they are really experienced. Besides, the GERB government is yet to decide on the future of the South Stream gas pipeline project. Prime Minister Borissov has already stated that this project will be profitable for our country. According to the CEO of the South Stream Bulgaria JSC joint project company, Georgi Gegov, Bulgaria will earn more than $200 mln annually from the project only from collecting transit fees. Higher energy efficiency = more benefits for the people Besides the major projects, our country must develop its policies on energy efficiency, which should not remain on paper only. The Energy Efficiency Act also contains options stipulating that funds could be provided for the insulation of buildings other than the subsidies granted by the state budget and EU funds, but only after strictly complying with the legal framework. Thus, the funds intended for insulation can increase by tens of millions of Euros. The proper implementation of the measures can create many jobs in our country in times of economic crisis. Bulgaria should also amend the Renewable Energy Sources Act. It is inadmissible for a law to be amended 4 times in 2 years because this indicates uncertain and unclear points in the legal base concerning investors, commented the Association of Producers of Ecological Energy to Klassa daily. Our country is discussing the main objective of development of green energy, while, simultaneously, the pursuit of a similar policy is destroying the sector. The irresponsibility of the Energy Minister has resulted in creating chaos for green energy producers at the beginning of the year. The reason was that the Agency for Sustainable Energy Development was not ready to issue certificates of origin of energy. Even now, there is no information system in this respect. Prior to extracting shale gas, let us see how the technology develops However, Bulgaria should not rely solely on its own resources - shale gas alone. The main problem is that the hydraulic breaking technology uses chemicals that can damage the soil and pollute the water which people drink. Experts explained that it would be good to know how shale gas extraction will be met in Poland and whether this extraction will affect local nature. Therefore, a reasonable option for us is to wait for the technology to advance and, only then, to implement researches on gas extraction. We know very well that one of the few preserved national treasures is Bulgarian nature. If we destroy it, as it happened after Dundee was granted concessions and in view of the forthcoming launching of the Gorna Arda Cascade, then Bulgaria will really suffer
Source: Class (21.03.2012)

Bulgaria will probably demand a deadline extension for the construction of Belene NPP. According to the new Minister of Economy, Energy and Tourism, Delian Dobrev next week the GERB (Citizens for European Development of Bulgaria party) government will decide the fate of the project and whether it will continue. Russia has not been officialy informed about the Bulgaria's withdrawal from the construction project of the second NPP, stated the Head of the Russian State Atomic Energy Corporation Rosatom, Sergey Kirienko, quoted by RIA Novosti. He added that the position of Moscow on the project implementation has not changed, but that the Russian side is already tired of the ongoing five-year negotiations on the plant's construction. We are ready to fulfill our commitments, only if Bulgaria meets its own, explained Kirienko. According to him, the faster Sofia issues a decision on the project's fate and clarifies the current complex situation, the better. So far, Bulgarian official representatives have periodically delivered monthly statements which often contradict each other, commented Rosatom. Before Parliament, Dobrev stated that the future of the Belene NPP construction project was the top priority for our energy sector. Dobrev also repeated that the construction of Belene NPP will not be a mutual Bulgarian-Russian project and delivered the idea for the construction of a VIIth unit of Kozloduy NPP. The procedure for transferring of the block will be time-consuming, but it will give us an option for nuclear power diversification, explained also the Minister. The construction of the gas connection with Turkey should be finished as soon as possible, since the project implementation has already started, stated the Minister at the ceremony for taking over the ministerial post of his predecessor Traicho Traikov. The construction of the pipeline with Romania will be begin in early summer and the first volumes of natural gas will be transferred by the middle of next year. Furthermore, the construction works on the interconnector with Greece should start late this year or early next one, while the Serbian project is also advancing at an accelerated pace. The main target of the MEET will be the energy efficiency improvement. Our economy is 89% more energy-intensive than the EU average, stated Dobrev. Another priority of the Ministry will be the development of household gasification as well as the financial aiding of small and medium-sized enterprises. For this purpose, overall BGN1 bn have been allocated under OP Competitiveness.
Source: Class (22.03.2012)

Russia Wants Clear Answer on Belene NPP Construction Russia's state-owned energy company Rosatom has urged Bulgaria to quickly make up its mind about the Belene nuclear power plant project. "Bulgaria's government is yet to inform us about its political decision," Rosatom head Sergey Kiriyenko said. Kiriyenko has pointed out that Bulgarian officials come up with statements once every month, often contradicting themselves. "If the decision is to construct it - we will. If the Bulgarian government decides it does not need a nuclear power plant, it won't be a big problem for us," the Rosatom head has stated. Rosatom's subsidiary Atomstroyexport has already assembled the reactor for the first block of the NPP to be built in the Bulgarian Danube town of Belene. Kiriyenko underlined that Rosatom (daughter company of Atomstroyexport has an agreement with the Bulgarian National Electric Company for the construction of Belene NPP) is ready to keep its obligations if Bulgaria keeps hers. Kiriyenko also informed that a possible refusal on behalf of Bulgaria to construct Belene NPP will not be a problem for his corporation which doubled the volume of its contracts last year and has many directions where to focus its efforts. In October 2011, Bulgaria and Russia reached an agreement to extend the negotiations over Belene nuclear project by another six months as of the beginning of October amidst continuing haggling over its price and feasibility. Mr. Kiriyenko also commented the position expressed by Bulgaria's PM Borissov that Bulgaria would give up Belene NPP as Bulgarian-Russian project and is thinking of installing the ready nuclear reactor at the ground of Kozloduy NPP but only waits for the stand of the consultant of the project - HSBC bank. The tern of the next annex to the Bulgarian-Russian agreement for the construction of Belene NPP is to expire next week.
Source: Standart (22.03.2012)

Bulgarian Finance Minister Djankov: Bulgaria to withdraw from the NPP Belene construction project I have never reckoned that the NPP Belene construction project is economically and financially substantiated, stated yesterday on the Bulgarian National Television (BNT), the Deputy PM and Finance Minister, Simeon Djankov. According to him, so long as the price of a given project is not determined and if there is no clarity on its actual profitability, it will be more beneficial not to implement it. During his visit to Moscow, Djankov stated to the Russian partners, that, soon, the Bulgarian side will announce its withdrawal from the project. Over the last year, other aggravating factors emerged such as the environmental disaster with the Japanese NPP Fukushima and, as a result, I am even more convinced that this project should not be implemented, said Djankov. He added that Bulgaria would like to remain a partner with the Russian side in the economic field. Moscow has already manufactured one of the reactors for the NPP Belene and it is expected to be ready for delivery to Bulgaria within a month. One option is for the reactor to be remodelled as the seventh unit of NPP Kozloduy. Alternatively, with Russian help, we can resell it and start constructing anew the seventh reactor of the first NPP, explained Djankov. The Deputy Prime Minister stated that ˆ10-15 mln have already been allocated for the Bourgas-Alexandroupolis pipeline project from which our country withdrew. No penalties will be paid on that project. The NPP Belene construction project was also legally substantiated, but I think that this fact does not exclude the imposition of penalties, reckoned Djankov. He predicted that the lawsuits instigated against the plant will be protracted for another 10-15 years and "if the Strasbourg-based European Court of Human Rights sanctions Bulgaria for some reasons, then we will seek a sentence against it for something else," reckoned the Deputy PM. According to the last Russian proposal for the construction of NPP Belene, its price should be at least ˆ6.3 bn, while the reactors could have been ready by the end of 2018. The final deadline of the NPP construction contract will expire at the end of next week. The construction agreement was signed in 2006 between NEK (National Electricity Company) and Atomstroyexport, and the project's value was expected to be under ˆ4 bn.
Source: Class (23.03.2012)

"Bulgaria will suspend the Belene NPP project and begin a procedure for the ready first generator for the power plant to be installed at the Kozloduy NPP, the Bulgarian Government decided at its meeting today," PM Boyko Borissov said after his meeting with the members of the Economic Committee in Parliament. "The Government will first try to sell the reactor and if we don't find a buyer, we will proceed with its sinallation at the Kozloduy NPP," specified Borissov. Before announcing the Cabinet's plans, the Prime Minister briefed President Rosen Plevneliev about the decision. "We gave a mandate to Minister of Economy, Energy and Toursim, Delian Dobrev, to inform the Russian side about our decision for the Belene NPP, PM Borissov said some hours before Dobrev flew for negotiations in Moscow. As a reason for Bulgaria to put an end to the over 30-year-long saga of the Belene NPP, PM Borissov pointed to the great increase of the project's cost and its proximity to the seismic zone near Vrancea. "At a price of ˆ6 bn and the credit resource offered to Bulgaria at an interest rate of between 10%-12%, it will amount to some ˆ10 bn or BGN 20 bn for the six years of construction. We cannot pay this money and also make future generations to pay it, PM Borissov justified the Cabinet's decision. The existing eletcricity distribution network at Kozloduy NPP was the second argument for building the new nuclear capacity there. "At least BGN 1 bn will be needed additionally for an electricity distribution network at Belene ," added Borisov. According to him, the closed units I, II, III and IV will be decommissioned and replaced in time by the projected second generator for Belene, which will be Unit VIII at the Kozloduy NPP. "On Friday, Minister Delian Dobrev will hold talks with his colleagues in Moscow in order to find a friendly way to get out of the project, rather than taking the matter to court," PM Borissov suggested a compromise. He reminded that two lawsuits regarding the Belene NPP project are currently going on - we Bulgaria is suing the Russian side in Geneva and and the Russian side is suing Bulgaria in Paris. "These are huge expenses," the Prime Minister complained.
Source: Class (29.03.2012)

Bulgaria Gives up on Belene Bulgaria gives up on constructing Belene NPP. Thirty-three years after the start, the project is now halted for a second time. The decision was taken yesterday by the Bulgarian Government. A gas centre will be built on what should have been Belene nuke grounds. The almost ready nuclear unit for Belene NPP will be laid on Kozloduy grounds as unit 7. It will cost 140 milllion euro to be paid to the Russian partners. The unit could be sold if a buyer emerges. This decision of the Bulgarian Government was aired by Bulgaria's PM, Boyko Borissov yesterday, two days after his phone talk with Russia's President, Vladimir Putin that was completely hushed about till yesterday. On Monday allegedly Borissov officially informed Putin over the phone that Bulgaria was giving up on the construction of the nuke. Yesterday Borissov commented on his motives as: "It fits neither him, nor me to prolong a theme for so long without completing it. In Bulgaria positions of "pro" and "cons" Russia are being created. And Belene turns into a project stirring discord instead of a point for the establishment of mutual cooperation. We agreed that we would not succumb to media pressure that would harden the relations between out countries and we will act towards the conclusion of this project and the acceleration of South Stream that would allow Bulgaria to act as a gas distribution centre on the Balkans." Having talked with MPs, the PM also said that he discussed gas reduction prices with Vladimir Putin. "Currently Bulgaria pays for the most expensive gas in Europe. Germany pays US$330 and Bulgaria pays nearly US$600," Borissov said. The new Minister of Energy, Delian Dobrev leaves for Moscow on an errand to search for a friendly way for going out of the project without having to sue each other,". The PM believes that if Belene were implemented it would have cost Bulgaria over 20 billion euro that Bulgaria does not avail of.
Source: Standart (29.03.2012)

First Gas Station Instead of a Second Nuke Instead of a second nuke, Bulgaria will have a first gas plant. This has been the Cabinet's decision on the hot topic concerning the nuclear project some thirty-three years after its start. "We give up on constructing Belene and after paying 140 million euro for the nuclear unit, it will be installed in Kozloduy," Bulgaria's PM, Boyko Borissov stated. "Mr. Putin and I agreed to avoid turning this project into an apple of discord and prolonging the saga for years," the PM also said. Today Bulgaria's new Minister of Energy, Delian Dobrev will leave for Moscow to try and "find a friendly way out" of the project, without having to go to court. Borissov defined South Stream pipeline as the main priority for Bulgaria. It is possible that the new gas station would be directly supplied by the pipeline.
Source: Standart (29.03.2012)

Rosatom: The withdrawal of Bulgaria from the Belene NPP project would be a negligible loss The eventual withdrawal of the Bulgarian authorities from the construction of Belene NPP will not lead to substantial losses for the Russian State Atomic Energy Corporation Rosatom, commented the Head of the Corporation Sergey Kiriyenko yesterday in relation to the decision of the Bulgarian GERB (Citizens for European Development of Bulgaria party) government to withdraw from the project. "In view of the total volume of Rosatom orders, the withdrawal from one NPP construction project will be a negligible loss. Nevertheless, a considerable amount of time and efforts were dedicated to the NPP Belene project. Of course, it would be a pity if the project is not implemented," reckoned Kiriyenko, quoted by ITAR-TASS. In his words, Russia's stance on the issue is strictly pragmatic. "If Bulgaria decides to construct the NPP Belene, then we will participate. If Bulgaria rejects the project, then we will not implement it", indicated the Head of Rosatom. The reaction of Brussels was also pragmatic. According to it, Bulgaria as any other EU member state, is entitled on its own opinion in relation to managing its energy resources, commented before the Bulgarian Telegraph Agency, Marlene Holzner, a Spokeswoman for EU Energy Commissioner, Gunther Oettinger, the decision of the Bulgarian government to terminate the NPP Belene project and to construct a new reactor in NPP Kozloduy. The Commissioner's team stated that Bulgaria had the free will to consider where to construct a new reactor or a NPP - whether in Belene or Kozludy or elsewhere on its territory. The European Commission highlighted that licensing of the projects is the main responsibility of the Nuclear Regulatory Agency in compliance with the standards of the European Directives on nuclear safety and nuclear waste management.
Source: Class (29.03.2012)

Parliament confirms the withdrawal from the Belene NPP project Yesterday, Parliament confirmed the Government's decision to stop the construction of the Belene Nuclear Power Plant (NPP). The decision was backed by the votes of 163 MPs form the Citizens for European Development of Bulgaria (GERB) party and the Blue Coalition. The MPs from the Bulgarian Socialist Party (BSP) and from Ataka voted “against”. The MPs from the Movement for Rights and Freedoms (MRF) did not participate in the vote. “With this decision, GERB has brought to an end the previous actions of BSP in terms of this project,” stated Prime Minister Boyko Borissov during the discussion on the drafted parliamentary decision for suspension of the project. “If there has been an opponent of the construction of the Belene NPP, this is the Government of Sergei Stanishev,” said Borissov and reiterated his thesis that the Government of the Tripartite Coalition had been unable to sign the final contract for construction of the plant during its term of office, in order to make the building of the plant irreversible. “The real success of the withdrawal from the Belene NPP belongs not to you,” said Borissov to the MPs from the Blue Coalition. In fact, the merit goes to the left-wing parties in Parliament and their Government, we just finished what they did intentionally,” added Borissov. The Government's plan to instal the ordered for the Belene NPP unit as a 7th reactor in the Kozloduy NPP gave rise to heated discussions as well. “A Russian samovar cannot work on American corn,” said Petar Dimitrov, Minister of Economy, Energy and Tourism in the Tripartite Coalition . “We will build the 7th unit at Kozloduy NPP in a transparent, clear and diversified manner,” Borissov said. Minister of Economy, Energy and Tourism, Delian Dobrev explained that there are three options for the site needed for the 7th unit at the Kozloduy NPP and that the MP from BSP Rumen Ovcharov lied when he claimed that the new unit cannot be installed at the existing NPP. “How do we know that the Belene NPP is a winning project if we do not have a final price, there is an escalation and we have no appropriate infrastructure,” asked Dobrev. A new infrastructure at the Kozloduy NPP will be needed for the new unit, as well, because the one remaining from the closed 1-4 blocks is obsolete. This fact was recognised by former Minister Traicho Traikov, Prime Minister Borissov and a number of energy experts even when, a year ago, the idea for redirection of the unit for the Belene NPP to the Kozloduy NPP started being promoted.
Source: Class (30.03.2012)

Green light for the construction of unit VII at NPP Kozloduy The decision on the initiation of construction procedure for unit VII of NPP Kozloduy was already submitted to the Council of Ministers and the GERB (Citizens for European Development of Bulgaria) government is expected to approve it next week, announced the Deputy Minister of Economy, Energy and Toursism, Valentin Nikolov. He participated in the discussion "Liberalisation of the Regional Markets", organised by Vienna Economic Forum and the Bulgarian Chamber of Commerce. The Forum is held under the patronage of the Prime Minister Boyko Borissov. Once the decision is adopted, a working group will be set up to implement the project, specified Nikolov. According to him, the Energy Bill, which was filed to the Parliament, will be endorsed until the end of the month. There will be a liberalisation of the Bulgarian energy market and only the market for the users of low-voltage electricity will be regulated. The contract for the South Stream gas pipeline project was already sent to the EU and all texts therein were synchronised. Furthermore, the project company owning the pipe, which will pass through Bulgarian territory, may request specific derogation in relation to this project as was the case with the Nord Stream pipeline construction. There are two options. The first refers to the implementation of the EU directives on liberalisation, which means that the project company should provide access to other companies to the conduits, while the second option pertains to granting derogation to the South Stream pipelines as was the case with the Nord Stream project," stated Nikolov.
Source: Class (05.04.2012)

Bulgarian Govt Set to Build 7th Reactor of NPP Kozloduy "A procedure for the preparation of the construction of a seventh power unit at NPP Kozloduy could be launched soon," Bulgaria's Deputy Economy Minister Valentin Nikolov said, speaking at a conference organized by the Vienna Economic Forum and the Bulgarian Chamber of Commerce and Industry. In his words, the proposal will be voted at the sitting of the Council of Ministers next week. Once the ministers decide to launch a procedure, a working group on the project could be set up. According to Mr. Nikolov, power units five and six of NPP Kozloduy will be upgraded as scheduled.
Source: Standart (05.04.2012)

A debt of BGN 7.2 bn accumulated by state-run companies State-run companies have accumulated a total of BGN 7.2 bn in debt, which is a jeopardy to the stability of the Bulgarian economy, Georgi Angelov, senior economist at the Open Society Institute, pointed out at a discussion called ‘The Economic Situation 2012’. According to him, the liabilities of state-owned firms are a serious obstacle to the development of the country’s economy because most of them hold a dominant position on the domestic market and if these fall into insolvency, the State has to repay debts. Presently, however, the Government has no free resources to operate in such a situation, explained the economist. The National Electric Company (NEK) is the top debtor with aggregate liabilities of BGN 2.17 bn, followed by the National State Railways (BDZ) and the Kozloduy NPP, whose debts amount to BGN 767 mln and BGN 750 mln, respectively. Thus, the liabilities of these three state-run companies alone exceed BGN 3.68 bn. Debts over BGN 0.5 bn have also been accrued by Maritsa Iztok Mines – 2 (BGN 648 mln) and the Sofia Central Heating Utility (BGN 548 mln). The other big debtors with liabilities exceeding BGN 100 mln are: Sofia Airport (BGN 150 mln), Bulgartransgaz (BGN 107 mln), the Sofia Public Transport Company (BGN 164 mln), Port Infrastructure (BGN 175 mln), Maritsa Iztok Mines (BGN 209 mln) Railway Infrastructure (BGN 213 mln) and Bulgargaz (BGN 341 mln). According to Angelov, some financial institutions, such as Municipal Bank PLC and the Bulgarian Development Bank, also have sizable liabilities. However, the structure of banks’ receivables is different and the liabilities of these two financial institutions, amounting to BGN 2.15 bn, are actually reported as attracted funds, specified the economist. According to him, a public register is needed for monitoring these debts. Angelov pointed out that according to data from the end of January 2012, Bulgaria’s aggregate public debt stood at BGN 11.68 bn, out of which BGN 4.92 bn was internal debt. Economists warned that over the next eight or nine months, Bulgaria should repay a total of BGN 3 bn in debt settlement for bonds and deficit. According to Lachezar Bogdanov, Managing Partner at Industry Watch, the Cabinet has to introduce a balanced budget. “Had that happened a year ago, we would not be wondering now how to find BGN 1.6 bn for paying the bonds maturing in January 2013. Bulgaria’s revenues from privatisation are low, its reserves have decreased and it is not clear who will lend us this money,” Bogdanov stated. Dimitar Chobanov, economist and professor at the University of National and World Economy, said that the Government could not raise these funds on the domestic market. A few days ago, the Finance Ministry issued government securities worth BGN 50 mln, but bonds worth only BGN 42 mln were purchased because investors seek higher returns, which the Bulgarian bonds cannot yield. According to Chobanov, seeking financial assistance from the IMF is a realistic option, despite the negative effects which such funding could have. Georgi Angelov also commented on the issue of resorting to the money from the so-called Silver Fund. The decrease of the fiscal reserves from BGN 12 bn in 2008 to BGN 4.5 bn in 2012 is among the main economic problems in Bulgaria. He expressed concern that if money for future payment of pensions was set aside, the fiscal reserve would decrease from BGN 4.5 bn to some BGN 2.5 bn. However, this money cannot be used because of Bulgaria’s commitments to the European Union. Thus, Bulgaria will practically remain without any reserves, the economist pointed out, specifying that such steps would position our country at the bottom in the European Union in terms of amount of reserves.
Source: Class (09.04.2012)

Bulgaria will build the 7th unit of NPP Kozloduy on a market-based principle The GERB (Citizens for European Development of Bulgaria party) government adopted a decision to launch the procedure for selecting an investor to construct the 7th unit of NPP Kozloduy, announced the Deputy PM and Finance Minister, Simeon Djankov after the GERB Cabinet meeting yesterday. Voting on such a decision is obligatory prior to the actual project launch, specified he. The new reactor will be constructed based on a market-oriented principle, which was also voted by the ministers. "We - from the Ministry of Finance also insisted that the decision should contain a text, saying that the construction would be on market-oriented principle. Besides, the state will not grant any guarantees nor will it bear financial burdens on the project in the form of direct loans," highlighted the Top financier. Besides,no contract has been signed yet for the set up of a project company to construct the 7th unit of NPP Kozloduy, announced Djankov. He indicated that thanks to the yesterday's vote, more specific additional decisions can be inked. "I think that the proper project implementation needs the establishment of a project company, but this is due to happen," specfied Djankov. In his words, it has not yet been decided as to whether the Bulgarian state will participate in it and with what share percentage. The possible future project company will be authorised to borrow loans for the reactor's construction. "The decision for NPP Belene construction failed to specify who and how much has to pay. With respect to the construction of the 7th unit of NPP Kozloduy, we would like to make it clear even from now, that the Bulgarian taxpayer will not bear the financial burdens of the NPP project. " In order to launch the actual construction works on the new unit at NPP Kozloduy, the Bulgarian Minister of Economy must submit a report thereof to the Cabinet to be voted on. It must be accompanied by legal and organisational form for the project implementation, announced the GERB government press office. Besides, the construction of a new capacity cannot happen without the issuance of a building license and permit pursuant to Bulgarian laws and under the EU standards.
Source: Class (12.04.2012)

Mines Maritsa Iztok launched the largest of three projects financed by the fund to support the decommissioning of NPP Kozloduy. The project is worth over EUR 12.5 million, of which EUR 8.8 million are grants. The first delivery of the main contractor Siemens Bulgaria is already a fact - cables for medium voltage worth BGN 7 million, the company announced. It was the beginning of a long-awaited rehabilitation and modernization of equipment in two mines of the company. The delivery included a new current-collection devices and batteries for excavators. The main objective of the project is to improve power quality of heavy mining equipment, reducing electricity costs and modernize the technology used.
Source: Standart (18.04.2012)

Tsetska Tsacheva: There will be no vote of no-confidence “There will be no vote of no-confidence against the Government because of the Belene NPP since there are no constitutional grounds for debates on the motion – the required minimum of 48 signatures has not been collected,” National Assembly Chairperson Tsetska Tsacheva said today. Nevertheless, the extraordinary parliamentary session scheduled for April 23 will be held because it can be cancelled only by voting in the plenary hall. During a press conference at the Ataka party headquarters some hours earlier, Ataka leader Volen Siderov said that all eight MPs who signed the no-confidence motion initiated by the Bulgarian Socialist Party (BSP) have withdrawn their signatures from the censure motion document. The motion had been signed by the exactly required one-fifth of MPs: 39 MPs from Coalition for Bulgaria, 8 from Ataka and one independent MP. “I was against the game of BSP but agreed with the censure motion with the idea that we would initiate a petition for a referendum for the Belene NPP, but BSP did not play fair,” Volen Siderov commented on the decision. According to him, BSP had appropriated Ataka’s idea and the withdrawal of signatures remained the only possible response on the part of Ataka. Volen Siderov was adamant that the decision was made without any pressure from GERB (Citizens for European Development of Bulgaria). He also denied that Ataka’s decision had anything to do with his relations with Georgi Parvanov. BSP leader Sergey Stanishev, however, had quite a different position. “Obviously, pressure was exerted on Ataka’s MPs,” commented Stanishev in Haskovo. According to the Chairman of Coalition for Bulgaria, it is obvious that Ataka’s decision is not in line with its convictions. Stanishev reminded that the Socialists had thanked Ataka for supporting the censure motion and wished them good luck if the withdrawal of their signatures is the only way to preserve the unity of their parliamentary group.
Source: Class (20.04.2012)

Bulgaria to Extend Life of Kozloduy NPP by 20 Years Bulgaria's Kozloduy NPP has started the first phase of the procedure to extend the life of its two 1000 MW reactors by 20 years. The Kozloduy NPP has made a contract with a consortium of Rosenergoatom Russia and French company EDF formally called Consortium OAD "Concern Rosenergoatom" (Russia) - EDF (France) for complex surveying and appraisal of the resources and equipment of the two operational reactors, Units 5 and 6, announced the CEO of the plant Alexander Nikolov at a joint news conference with Bulgarian Prime Minister Boyko Borisov and Finance Minister Simeon Djankov. The results of the survey will be the base for the preparation of a program on the extension of the exploitation life of the two units. The second stage will focus on the realization of the measures on this program. After that Kozloduy NPP submit an application to the Nuclear Regulatory Agency for new licenses of Units 5 and 6 respectively till 2037 and 2039.
Source: Standart (21.04.2012)

Dobrev: Bulgaria will issue bonds in order to pay for the loan for the construction of NPP Belene The pressing issue of the credit extended by the banking syndicate headed by BNP Paribas has not yet been resolved. The request for a one-year extension of the five-year loan worth ˆt.250 mln was declined by the two banks willing to grant the funds, stated yesterday at the Green Economy Forum, the Minister of Economy, Energy and Tourism, Delian Dobrev. The resources needed are ˆ55 mln, - an amount which should either be borrowed or paid in part. May 23 is when the loan matures. The other banks agreed to extend the deadline in return for receiving more beneficial general terms and conditions, said Dobrev. According to him, NEK (National Electric Company) has no funds to repay the credit, but other options will be sought for finding money from the Bulgarian Energy Holding /BEH/. There is no time to get a new loan. In the long term, we will consider the alternative of issuing bonds to repay and refinance the loan, said Dobrev. The report of the Public Financial Inspection Agency on the NPP Belene construction project, which was published on the website of the Economy Ministry yesterday, was mailed to the Prosecutor's Office as early as April 17, added Dobrev.
Source: Class (25.04.2012)

Boyko Borissov: Let the business sector be granted BGN 600 mln Let the business sector be immediately gratuitously granted a total of BGN 600 mln with which to improve energy efficiency of enterprises, appealed yesterday the Prime Minister Boyko Borissov. He attended the presentation of a new funding scheme under OP Competitiveness, and OP Energy Efficiency and Green Economy. GERB's government is ready to allocate BGN 300 mln in order to improve the energy efficiency of enterprises. For these projects, companies will have to secure 50% own financing. If they do not have own funds, we will provide them with a credit line under EBRD for another BGN 300 mln which will be granted at low interest rates, added the Prime Minister. Let us save the power of a single reactor via energy efficiency improvement and let us, afterwards, construct another seventh reactor. A programme has already been launched for extending the service life of the 5th and 6th units of NPP Kozloduy. By integrating an RES (renewable energy sources) capacity of about 2,000 megawatts, we will be able to export electricity over the next 20 years, stated Borissov. As a result, Bulgaria can invest the saved funds in the construction of sewage treatment plants, railway lines and highways. The reports indicate that the Bulgarian economy is five times more energy consuming than the European one. Moreover, compared to the most developed countries, our economy is ten times more energy consuming. The more energy we spend, the more reactors must be constructed mainly using the taxpayers' money. There is hardly another country like Bulgaria, which has allowed itself such a waste of investment on electricity, stated the PM and gave the example of the hydropower system “Tsankov kamak” (Stone of Tsanko) with a power capacity of 80 megawatts, which cost BGN 1 bn. According to him, in the energy sector, our high investment in energy projects cannot be properly refunded. The reports of the consultants on the Belene NPP project and the Russian side clearly stated that the plant's construction price was wrongly declared in 2006. The construction cost of the NPP is BGN 22-23 bn. Currently, Bulgaria uses a power capacity of 5, 000 megawatts, while having facilities of 10,000 megawatts and nothing necessitates the allocation of another BGN 22 bn in order to integrate an additional 2,000 megawatts. One of the units of NPP Kozloduy functions solely to cover the financial losses resulting from the network's operation, stressed the Prime Minister. If we manage to save 1,000 megawatts of electricity this will save us over BGN 10-11 bn. As a result of the insulation of residential buildings, household heating bills could drop by 55-60%. In order for this rehabilitation programme to succeed, I rely on the interest expressed by Bulgarians.
Source: Class (26.04.2012)

Specialised group prepares the setting up of a project company for the construction of the 7th unit of NPP Kozloduy The setting up of a project company to construct the 7th unit of NPP Kozloduy has been provided for. In the first stage, it will be 100% owned by our first nuclear power plant. For its implementation, a specialised working group was set up, which is chaired by Valentin Nikolov, Deputy Minister of Economy, Energy and Tourism. Next week, the participants will gather to draw up a roadmap of the project. The latter was announced by Nikolov after opening the international forum dedicated to strategic energy challenges in the EU. It was attended by companies from the Visegrad Four including the Czech Republic, Poland, Hungary and Slovakia, as well as Bulgaria and Romania. "Russia has not addressed its official claims against Bulgaria on the NPP Belene project," flatly denied all allegations circulated in the Russian media on that issue Deputy Energy Minister Nikolov. According to him, so far, no one has mentioned anything about Moscow filing claims worth ˆ1 bn against our country. Bulgarian liabilities to Atomstroyexport for the 1st reactor of NPP Belene have not been calculated yet. CEZ Bulgaria SJC insists that our country must finally introduce real market prices in terms of electricity in order to enable companies to refund the investment expenditures they have incurred, reported Petr Dokladal, Regional Manager for CEZ Bulgaria. He reminded that CEZ has owned TPP Varna since 2005 and, since then, he has been waiting for our country to liberalise the market. "We cannot export electricity to Turkey, Romania and Serbia because we must pay ˆ12 for the transmission of a MW of electricity and, in this case, exports becomes unprofitable," complained Dokladal. He announced that, during this extremely cold winter, TPP Varna prevented the Bulgarian power system from collapsing three times via activating its cold reserve units.
Source: Class (27.04.2012)

Bulgaria to set up a project company for unit 7 of Kozloduy NPP “A project company for the construction of unit 7 of the Kozloduy NPP will be set up in the coming days,” said Minister of Economy, Energy and Tourism Delian Dobrev. “We expect this company to make all the necessary preparations for licensing the site for additional capacity,” he explained. The project company will be 100% owned by Kozloduy NPP. “It will be registered when work on the project starts. In this way, the financial stability of Kozloduy NPP will not be jeopardised, as it happened with the Belene NPP project and the National Electric Company, which faced difficulties in fulfilling its credit obligations,” said the Energy Minister. According to him, the initial capital of several million BGN will be used for paying all the costs for licensing the site, all preliminary geological surveys, as well as the sociological and economic analyses. Within a year, after the completion of the preliminary activities, a deadline for the construction of Kozloduy’s unit 7 can be set. “A strategic investor will be sought in 2013, after the preliminary work is done and the site is licensed,” specified Minister Dobrev. “We have arguments to demand better terms for natural gas supplies from Russia next year,” added the Energy Minister but declined to comment on how this would affect the price of natural gas in Bulgaria. According to him, the negotiations on the next contract for gas supplies should begin, because the current one will expire at the end of 2012. According to Dobrev, our goal is to agree on better terms than the current ones. He reminded that he had managed to achieve a reduction of the price by a little more than 11% earlier this year.
Source: Class (02.05.2012)

NEK to recieve a one-year deadline extension for the loan from BNP Paribas “The National Electricity Company (NEK) will recieve a one-year deadline extension for its loan from BNP Paribas, amounting to ˆ250 mln. Part of the loan will be paid with credit from the Bulgarian Energy Holding (BEH), granted to NEK,” said Delian Dobrev, Minister of Economy, Energy and Tourism, who attended the fourth International Environmental Congress 2012, organized by Overgas yesterday. The Minister noted that the current instalment would be between ˆ50 and 70 mln and that the BEH was likely to pay the amount of ˆ 50 million because NEK had free resources to repay the rest. The payment of the remaining part of the loan will be extended by one year. The maturity of the loan expires on May 23, 2012. The deadline extension was agreed by the bank and the decision on the current contribution was made by the Management Boards of BEH and NEK last week. The Bulgarian authorities are still calculating the amount, which NEK owes for the Russian nuclear reactor for the Belene Nuclear Power Plant (NPP). “The amount is not large and we have no firm deadline in which to pay this liability. After having justified exactly how much we owe to Atomstroyexport, the funds will be paid within a normal term,” Dobrev said. According to Sergey Kiriyenko, Head of Rosatom, our country owed about ˆ1 bn for the reactor at the end of April. Dobrev did not exclude the option of selling the equipment, but noted that the registration of the project company for the construction of the 7th unit at the Kozloduy NPP was underway. Bulgarian end users still do not consume cheaper gas, even after Russia reduced the fuel price by 11% as of April 1. A decision of the State Energy and Water Regulatory Commission is expected. According to the Minister, the reduction will be calculated retroactively after signing the relevant agreements with Gazprom. He did not announce how this would happen and how it would affect consumer prices of natural gas.
Source: Class (08.05.2012)

The former head of NPP Kozloduy stays on as an employee The future of NPP Kozloduy is of paramount importance for Bulgaria. It is my top priority - ahead of my personal and career plans, stated to bTV, BNR and Bulgaria on Air TV the former CEO of the NPP Alexandar Nikolov, who was dismissed from his post as a result of the decision of the Bulgarian Energy Holding. The former Deputy Economy Minister in charge of the Energy Sector with the Ministry of Economy, Energy and Tourism (MEET),Valentin Nikolov, was appointed in his place. MEP Vladimir Urutchev will be appointed as his adviser. Nikolov confirmed the reason for his dismissal - the slow progress on extending the service life of the two energy units of NPP Kozloduy. He stressed that he had not been offended and that he did not feel any distrust towards him on the part of Minister Delian Dobrev. "If this change is really aimed at improving the NPP's condition, then I welcome it," added the dismissed CEO. He stated that he will remain employed by NPP Kozloduy without specifying his future position. "I am not angry with anyone because of my dismissal - my position was not particularly high up the ranks but it was very responsible and rather complicated. Valentin Nikolov and I know each other, and I believe that he will not change the current qualified team because that would be irrational. His appointment will only improve the NPP's communication with the MEET," added Nikolov.
Source: Class (09.05.2012)

Vladimir Urutchev: Extending the service life of the units at the Kozloduy NPP is a primary goal of the country’s energy policy “Extending the service life of the units at the Kozloduy Nuclear Power Plant (NPP) is the main target of the country’s energy policy, since Bulgaria gave up implementing the Belene NPP project,” said MEP Vladimir Urutchev, Advisor to Valentin Nikolov, the newly-appointed Director of the Kozloduy NPP, for Focus news agency. He said that he was aware of the skills of the plant’s personnel because he has worked for many years at the Kozloduy NPP in different positions. "I can help these options to be used in a very good and efficient manner. You should bear in mind that the Kozloduy NPP is an entity that employs hundreds of engineers with unique education and experience. They are not only needed for the plant, but they are essential for defending the country’s interests in the energy branch. The national goal number one is to extend the service life of the 5th and 6th units, and to focus the full potential and expertise in Kozloduy after the suspension of the Belene NPP project," added Urutchev. He said that this was achievable. "This is not something unique that we have invented, but common practice all over the world. We are obliged to do it because the low price of electricity in Bulgaria is largely due to the Kozloduy NPP and this should continue," he said. According to Urutchev, from now on, the normal functioning of the plant will be a political focus as well.
Source: Class (10.05.2012)

Valentin Nikolov: No further reduction in the price of Russian gas is necessary “No further reduction in the price of Russian gas for Bulgaria is necessary,” Valentin Nikolov, former deputy energy minister and incumbent CEO of the Kozloduy NPP, said on Darik radio. “What we need is a more market-oriented contract with the Russian side, which is currently being negotiated,” added Nikolov. According to him, in order to achieve an 11% decrease in the price of natural gas as of April and because of our country’s withdrawal from the project for a second nuclear power plant, Bulgaria has undertaken the commitment to be ready with a decision on the South Stream project in the autumn. This is of extreme importance to Russia. “They have placed the South Stream project on the negotiating table and we have undertaken to come up with a final investment decision by mid-November. Accordignly, we want the concrete step on their part to become effective as of April,” explained Nikolov. “A fierce battle will now begin for extending the service life of Kozloduy NPP’s units 5 and 6 by 20 years,” Nikolov said on BNT. According to him, “this battle is already late by several months”. “One of the problems that emerged in connection with that extension, for example, is that a tender for the selection of a contractor was invited on March 8, 2011, and although it was never appealed, the contract was signed a year later. The usual term is three months after launching of the tender,” explained Nikolov. He reminded that Kozloduy NPP should submit a plan to the Nuclear Regulatory Agency not later than four years before the service life of the generators expires – 2017 and 2019. Otherwise, the deadlines for granting of a licence will be missed. The new CEO of Kozloduy NPP promised more transparency in the tenders and public procurement contracts of the plant. “There have always been suspicions about Kozloduy because of its large turnover and transparency must be at the sufficiently high level. I intend to improve the transparency,” vowed Nikolov.
Source: Class (11.05.2012)

"The new Unit 7 of Kozloduy NPP will start producing power in 2024 at the latest," newly appointed CEO of the nuke Valentin Nikolov stated. "Within the next 2-3 years, the ground of the new unit will be licenced. After that the rest of the activities connected with the project will be launched. The reactor of Unit 7 will be the one which was prepared for Belene NPP and which is ready at 80%. The second reactor which was planned for Belene nuke and which is ready at 25% will be sold at a profit," Mr. Nikolov said further.
Source: Monitor (11.05.2012)

IMF Forecasts 0.8% GDP Growth in Bulgaria Bulgaria should not use resources from the so-called Silver Fund and instead issue euro obligations to cover the coming installments on the foreign debt and thus guarantee the fiscal reserve, is the counsel in the latest report of the International Monetary Fund written after the Fund's latest mission to Bulgaria from May 2 to 9th. "As with the current situation, it would be most wise to raise the level of the fiscal reserve and avoid its decrease," the IMF wrote. The Silver Fund is a part of the fiscal reserve, among its main function is guaranteeing the stability of the fisc with regard to pension payments in a future doomed with growing numbers of pensioners and far from positive demographic growth. IMF commentaries come as a reaction to Bulgarian Government's intent to invest 30% of its resources into state securities. "The sensible policies and strong buffers have secured Bulgaria sustainability in the times of the world financial crisis," Bulgaria's Minister of Finance, Simeon Djankov quoted the report in Parliament. However, it is the Government's opinion that Bulgaria's growth is still too slow mostly due, as experts believe, to foreign political factors. The GDP in the country will reach 0.8% in 2012 and 1.5% in 2013, the IMF forecasts. Bulgaria needs more decisive structural reforms for a higher growth, the IMF document reads. The IMF forecasts an inflation in the framework of 2%.
Source: Standart (11.05.2012)

Evgenia Haritonova is the new Deputy Minister of Economy Prime Minister Boyko Borissov appointed Evgenia Haritonov as the new Deputy Minister of Economy, Energy and Tourism, announced the information office of the GERB (Citizens for European Development of Bulgaria) government. She will take charge of the energy sector, replacing the former deputy minister Valentin Nikolov, who was appointed as CEO of NPP Kozloduy. Before that, Evgenia Haritonova was a member of the State Energy and Water Regulatory Commission. She was also employed by the Electricity System Operator EAD and the National Electricity Company. Her forthcoming appointment on the new post was announced this morning by Minister of Economy, Energy and Tourism Delian Dobrev on bTV. The new Deputy Minister is an excellent expert with a clear vision for the sector's development. She has also worked on the liberalisation of the energy market, which is a very important task for the ministry in the second half of this year, commented he. "I will accept the position because I am a patriot, an energy expert and I think that this industry should not be left to develop in a vacuum," reckoned on her part Haritonova. The modernization of the 5th and 6th units of Kozloduy NPP is a priority in the field of nuclear energy since this is the cheapest energy and thus we cannot afford to lose even a day, stated before bTV Dobrev, referring to the contract, concluded with the French-Russian consortium, which will assess the actual condition and the remaining resource of the two units. The contract was actually signed barely in April this year, provided that the procedure was initiated in March 2011. The construction of the 7th unit of Kozloduy NPP will be launched by a project company, which will bear the responsibility for its implementation. This case is contrary to the situation with the Belene NPP when it proved out that NEK became a financial hostage of the project and could not disburse the loans and liabilities owed to the suppliers, stated Dobrev.
Source: Class (15.05.2012)

Bulgaria to demand another ˆ250 mln for the Kozloduy International Fund “Bulgaria will present its demand for a further ˆ250 mln in compensations owed to the country because of the closure of the first four units of the plant, due to the delay in the absorption of the money from the Kozloduy International Fund,” announced Valentin Nikolov, Executive Director of the Kozloduy Nuclear Power Plant during an international conference on nuclear energetics in Varna. “This will happen today in London at the headquarters of the Fund.” According to Nikolov, the claim is being made in relation to the report submitted by a Romanian MEP in the European Parliament, containing a request for the suspension of the financial compensations for Bulgaria after 2014. The funds are provided to the country for the implementation of energy efficiency projects, whose primary purpose is to reduce the energy-intensity of Bulgarian production. The value of the initial projects is about ˆ44 mln. There are projects aimed at improving the energy efficiency of the lighting systems of several major cities - Plovdiv, Bourgas and Stara Zagora. The funds needed for this measure are ˆ4.120 mln. The energy efficiency of public buildings in many medium-sized and small municipalities will be improved as well under a project worth ˆ14 mln. Over 15 mln will be allocated for improving the energy efficiency of state institutions, of Sofia University and the hospitals in the capital. The lighting systems in the towns of Kyustendil, Chepelare, Dobrich and others will be replaced with more modern, energy efficient ones. The estimated value of this project is ˆ11 mln. “Besides these projects, some ˆ100 mln from the EBRD will be allocated for finishing the construction of the network of Bulgartransgaz and for the acquisition of a special excavator for the Maritsa Iztok Complex,” said Nikolov. “By October, the tenders under all five measures must be conducted and contractors selected,” said Nikolov. The implementation of all these projects should start at the beginning of 2013.
Source: Class (31.05.2012)

NPP Belene Set to Become Private Project The fact that the Bulgarian government pulled out of the NPP Belene project in March this year does not mean that it has been discarded. The option remains that the project be realized as a private investment. This became clear from a statement of Mr. Bogomil Manchev, chairperson of the Bulgarian nuclear forum Bulatom. In his words, it is inappropriate for a nuclear plant site that had passed all stress tests to be dropped just like that. He made it a point that the project could be fully passed in private hands, and the idea was also embraced by Mr. Solomon Passy, chairperson of the Atlantic Club in Bulgaria. According to NPP Kozloduy CEO Valentin Nikolov, the nuclear energy sector in Bulgaria has a wide potential for development, and in this context the option for a second power plant in the country should be kept open. Regarding the abovementioned stress tests, it has been proven that the power plant, when built, will survive an impact with Airbus A 380, the largest passenger airplane in operation at the moment. According to Mr. Manchev, the government's idea of building a seventh reactor on the site of NPP Kozloduy does not contradict a possible construction of a second nuclear plant in the country, having in mind that the U.S. investment fund that came under the lights a few months ago has not pulled out of the project yet. Moreover, the fund is now trying to draw in European companies to the project. According to energy expert Prof. Atanas Tassev, the government could secure at least two billion euro revenues to the budget by green-lighting the plant's construction.
Source: Standart (31.05.2012)

Sofia Claims Extra EUR 255 M for Shut down Nuclear Reactors According to NPP Kozloduy CEO Valentin Nikolov, Bulgaria could claim as much as 255 million euro for the decommissioned four reactors of NPP Kozloduy for the period 2014-2020, provided that the sum is accepted by the Kozloduy Fund donors.
Source: Standart (31.05.2012)

7th unit at Kozloduy NPP will cost as much as two at Belene NPP "The construction of unit 7 at Kozloduy NPP will cost as much as two new units at Belene NPP," Rayko Dachev from Risk Engineering said during a forum organised by BULATOM at the Riviera holiday village near the city of Varna, quoted by Bulgarian Telegraph Agency. "This is due to the fact that the construction of unit 7 will require respective auxiliary units and equipment, repairs and renovation of the existing infrastructure," explained Dachev. The EPC (Engineering, Procurement and Construction) contract for generator 7 at Kozloduy NPP will be signed not earlier than 2014-2015, that is, eight or nine years after the signing of the contract for the Belene NPP," stated Dachev. "This will inevitably result in raising the price of the project because the economic environment will be different from that when the contract for the already abandoned Belene NPP project was signed," added the expert. According to Dachev, some 12-15 years will be necessary for the implementation of Kozloduy’s unit 7 project. "The main construction and the commissioning of unit 7 will take some five or six years and time will be needed as well for the licencing of the site," predicted Dachev.
Source: Capital (01.06.2012)

A new unit at Kozloduy NPP will cost as much as two at Belene NPP ”The construction of unit 7 at Kozloduy NPP will cost as much as two new units at Belene NPP,” Rayko Dachev from Risk Engineering said during a forum organised by BULATOM at the Riviera holiday village near the city of Varna. “This is due to the fact that the construction of unit 7 will require respective auxiliary units and equipment, repairs and renovation of the existing infrastructure,” explained Dachev. The EPC (Engineering, Procurement and Construction) contract for generator 7 at Kozloduy NPP will be signed not earlier than 2014-2015, that is, eight or nine years after the signing of the contract for the Belene NPP,” stated Dachev. “This will inevitably result in raising the price of the project because the economic environment will be different from that when the contract for the already abandoned Belene NPP project was signed,” added the expert. According to Dachev, some 12-15 years will be necessary for the implementation of Kozloduy’s unit 7 project. “The main construction and the commissioning of unit 7 will take some five or six years and time will be needed as well for the licencing of the site,” predicted Dachev.
Source: Class (01.06.2012)

The Kozloduy International Decommissioning Support Fund grants BGN 120 mln for energy efficiency “The 23rd Assembly of Contributors to the Kozloduy International Decommissioning Support Fund has granted a total of BGN 120 mln for improving the energy efficiency of government and public buildings,” announced officials from the Ministry of Economy, Energy and Tourism (MEET). “A total of 66 municipalities have received approval for financing of energy-saving projects for 217 buildings,” stated MEET’s experts. Sofia University St. Kliment Ohridski, hospitals, schools and kindergartens in the capital and throughout the country are among the beneficiaries. The funds earmarked for this purpose amount to ˆ35.5 mln, or almost BGN 70 mln. Most of the funding will be focused in the major cities, including Sofia, Bourgas, Stara Zagora and others. In addition to this, a total of ˆ10.5 mln, or just over BGN 20 mln, have been agreed for the building of energy efficient street lighting systems in 14 municipalities. The lighting systems in the capital Sofia, and the towns of Kyustendil, Dobrich, Chepelare and other medium-sized and small municipalities will be replaced. The Sofia District Heating JSC will also receive funding from the Kozloduy Fund. A total of ˆ1.5 mln will be allocated for a feasibility study for the building of a capacity for Refuse Delivered Fuel (RDF) of waste, which will be produced by the future waste-processing plant in Sofia. “Agreements worth nearly ˆ15 mln, or about BGN 30 mln, have been signed for decommissioning activities of the 1-4 units of the Kozloduy Nuclear Power Plant,” reported officials from MEET.
Source: Class (04.06.2012)

Bulgaria proposes Russia to take part in the construction of the 7th unit at the Kozloduy NPP Bulgaria has proposed the Rosatom State Atomic Energy Corporation to take part in the construction of the 7th reactor at the Kozloduy nuclear power plant (NPP), announced Kiril Komarov, Deputy Director General for Development and International Business at Rosatom, during the Atomekspo 2012 exhibition in Moscow, posted RIA Novosti. "The Bulgarian officials have proposed that we consider our participation in the construction of the 7th unit at the Kozloduy NPP. I think that our co-operation will continue and that it has good prospects, despite the refusal of Bulgaria to build the Belene NPP,” he said. Yesterday, during a forum, dedicated to the Day of the Bulgarian Energetics, Deputy Minister of Economy, Energy and Tourism, Evgenia Haritonova declined to comment on the statement of Komarov. In late March, Bulgaria decided to abandon the project for the construction of the Belene NPP, the agreement on which had been signed by Sofia and Moscow in 2006. The construction of a Thermoelectric Power Plant on natural gas is planned on the site prepared for the Belene NPP. The almost finished reactor for the Belene NPP was considered to be implemented at the Kozloduy NPP, thereby increasing the number of units of the plant to three.
Source: Class (06.06.2012)

Russians to Build Unit 7 in Kozloduy NPP Rosatom, the Russian state-owned corporation, and its subsidiary Atomstroyexport will build the nuclear power generating facilities of the new Unit 7 of Bulgaria’s Kozloduy nuke on the Danube. Sofia and Moscow have confirmed the news almost synchronously. “The fact that the reactor originally made for Unit 1 of the suspended Belene NPP project and the Russian part has nearly completed it automatically means that the nuclear part of Unit 7 in Kozloduy will be manufactured by our partners from Atomstroyexport. Bulgaria’s minister of energy Delyan Dobrev broke the news. Minister Dobrev added that another contractor was searched for the non-nuclear part of Unit 7 of Kozloduy NPP in order to diversify the project. "The negotiated reduction of natural gas price for Bulgaria by 11,1% as of April 1 will come in force when Bulgaria takes a written commitment for a final investment decision for the construction of South Stream project by Novemner 15,” minister Dobrev also stated.
Source: Standart (06.06.2012)

Fourteen out of 22 wishing to buy from Nuclear Power Plant Kozloduy’s electricity, which is provided for the free market, will succeed to do so. Last week an auction was held, on which 40 MW were offered. At the same time offers considerably surpassed declared quantities, reaching 600 megawatts, on the account that the energy provided by the headquarters to the market needs 350 megawatts. For the first time NPP Kozloduy helad an auction, where on equal footing both electricity retailers and end users - large industrial enterprises could have appeared. The final effect was more intense competition and higher prices. Bidders in the auction commented that they are pleased with the new conditions. Among the first companies to rate were Lukoil Neftochim, Zagora energy and Duropack Trakia paper.
Source: Capital (28.06.2012)

Electricity prices to increase by another 20% next year because of the carbon emissions of TPPs “Electricity prices will increase by another 15-20% next year, because of the carbon emission quotas which thermoelectric power plants will have to buy as of 2013,” Yordan Kostadinov, former director of Kozloduy NPP, said in an interview for Klassa daily. According to him, if the Belene NPP is not built, by 2020-2025, Bulgaria will be one of the EU countries with the most expensive electricity. “Currently, the electricity market in Bulgaria is worth BGN 5 bn. In 2020, the same market will cost ˆ5 bn, which is double that amount,” stated the former head Kozloduy NPP. According to Kostadinov, 10 years ago, Bulgaria had to make a decision on the share of different types of energy – from water, winter and solar energy - in the 16% of the electricity our country should be producing from renewable sources as of the year 2020. “It was normal for electricity from water to account for about 12%, that from wind – for about 2-3% and solar energy – for 1-2%,” stated Kostadinov. “The wrong forecasts of operators and the increased surplus charge for green energy calculated in the price of electricity are the reasons for the higher price increase of electricity,” Angel Semerdjiev, Chairman of the State Energy and Water Regulatory Commission (SEWRC) admitted on BNR today. The change in the price of electricity, or rather the surcharge for green energy was based on the statements of companies as of the end of April. Over the last two months, however, investments in the construction of photovoltaics have increased dramatically, significantly changing the forecasts. “The adjustment made is stipulated by law,” said Semerdjiev. According to him, the price of electricity will be adjusted more frequently in the future. Now, electricity prices increase once a year, on July 1.
Source: Class (02.07.2012)

The construction of the future Unit 7 of the only Bulgarian nuclear power plant in the Danube town of Kozloduy should be completed in 2022, according to NPP CEO Valentin Nikolov. Nikolov told reporters in Sofia Friday that 2022 was "an optimistic forecast" for the construction of the new 1000 MW nuclear unit. "Everything depends on the talks with the Russian side about the specific nuclear reactor," Nikolov said, referring to the fact that Bulgaria's Borisov Cabinet decided to build a 7th unit at the Kozloduy NPP after in March 2012 it gave up on the construction of a second Bulgarian nuclear power plant in Belene. Subsequently, the Borisov government decided to install the 1000 MW reactor already produced for Belene by Russian contractor Atomstroyexport, a subsidiary of Rosatom, at the existing plant in Kozloduy. Nikolov also announced that five companies have applied to conduct the preliminary study for the construction of a seventh reactor at Kozloduy, and that one of them will be picked by the Bulgarian government by the end of next week. Bulgaria's nuclear authorities and the NPP management have notified the Environment Ministry as well as the governments of neighboring Romania and Serbia about their intention to build a seventh unit of the plant in Kozloduy, he said. "We are working to reduce the time as much as possible so that the government can take a final decision, and we can get a license for the construction site, while also seeking either the Bulgarian Academy of Sciences, or an outside contractor for consultations," Nikolov explained. At present, only the 1000 MW units 5 and 6 are operational at the Kozloduy NPP, after Bulgaria agreed to shut down the 440 MW units 1-4 in 2002 and 2006 as part of its EU accession talks under pressure from Brussels. The Bulgarian government has also initiated a program to extend the life of Units 5 and 6 by at least 20 years as their life is set to expire in 2017 and 2019 respectiv
Source: Darik Radio (30.07.2012)

Confusions between state energy companies and regulators prevent almost finished hydroelectric power plant at Kozloduy NPP to be incorporated into the network. "The HPPis ready, but can not be connected. Electricity System Operator failed to incorporate us into our plan for next year, while the State Energy and Water Regulatory did not approved us. Meanwhile, in early 2013 the warranty period of the Czech turbines expires and we have to give another BGN 600 thousand to extend it for the third time, "said Executive Director of the Plant Valentin Nikolov. For the construction of water power more than BGN 22 million has been spent for eight years instead of just BGN 12 million. Company Hydro Plant was established in 2004 in order to build a hydroelectric plant with capacity 5 mg watts on one of the hot channel of NPP Plant.
Source: Trud (31.07.2012)

Properties of Polimeri AD, assessed to a total of BGN 15.79 million are given in tender for debts to NPP Kozloduy. A total of 9 announcements were signed by a private bailiff Zahari Dimitrov. All properties are located in the industrial zone of Devnya. The most expensive one is assessed to nearly BGN 7 million and has an area of 484 acre and 15 buildings located on it. Nearly BGN 4.8 million is the minimum price for electricity substation with 4 buildings. Land with an area of nearly 550 acres that can be used for warehouse or manufacturing facility is announced for sale for BGN 3 million, as well. A property with an area of 29 acres with five buildings on it is offered in the tender, too. Documentation for participation in the auction is to be received till 13 September, as candidates should deposit 100% of the initial sum for each of the announced properties.
Source: Standart (09.08.2012)

Unit 6 of Kozloduy NPP generates 119,251,137 MWh of electricity in 20 years At 18.41 hrs on August 13, 2012, it will be 20 years since the day on which unit 6 of the Kozloduy NPP reached 100% load of its production capacity, representatives of the power station reported. Since the time when the unit was switched in parallel with Bulgaria’s power grid, it has generated 119,251,137 MWh of electricity. In 2011, the highest annual production of 8,146,961 MWh was reached, or 16.27% of the electricity produced in the country. Now, unit 6 of the Kozloduy NPP has a leading place as one of the safest and most reliable operating nuclear power plants in the world. In addition to its excellent operating performance, a proof of this are the 13 years and 3 months without unscheduled activation of the unit’s emergency protection system, which is a unique global achievement for a nuclear generator of this type. Kozloduy’s CEO Valentin Nikolov congratulated all the company’s employees with the 20th anniversary, paying special attention to the merits of the people who have worked for the construction and the successful operation of unit 6.
Source: Class (14.08.2012)

5 companies have submitted documents to develop a project for the new Unit 7 of Bulgaria's Kozloduy NPP, announced the plant's CEO Valentin Nikolov. Those are US company Westinghouse (part of the Toshiba corporation), French Areva, Areva in a consortium with Mistubishi, Bulgarian company Risk Engineering and Australian Worley Parsons. Worley Parsons were commissioned as architects and engineers of the scrapped project for a second Bulgarian NPP, the Belene NPP project. The companies have submitted their offers for technical and economic assesment of Kozloduy NPP Unit 7 in mid-July but have been asked to improve theiri bids, said Nikolov. According to the NPP CEO, expectations are that the value of the assessment will e about BGN 1 M, with independent experts giving much larger estimates. "We will be very careful with our choice of company, in order to avoid errors like those that were committed with the Belene NPP," said Nikolov. The initial assesment must be ready some 7-9 months after concluding the contract; by the end of 2013 the company must chose the site for the new Unit 7. Nikolov also added that in September, Kozloduy NPP will launch an environmental impact assessment for its planned Unit 7.
Source: Capital (15.08.2012)

Italian Transformers Cause Failure in Kozloduy Nuke Faulty transformers manufactured in Italy impede the work of the Kozloduy nuclear power plant. There is no emergency risk, however, as the transformers are working outside the nuclear unit of the plant. The problem became evident May 26, when Unit 6 was stopped owing to a transformer breakage. Then the automatic safety device was activated. After the transformer was replaced the unit’s work was resumed and a working group was formed to establish the cause of the failure. The group is still working but, according to the preliminary results, the problem lies in the work of the Italian-made transformers, which, according to experts, have bad insulation and inadequate reeling, Director of the Kozloduy NPP told www.kozloduy-bg.info.
Source: Standart (24.08.2012)

NPP Kozloduy sell a beach complex NPP Kozloduy announced an auction with a secret bidding for a sale of a beach complex and a store. The company wants to release itself from an entertainment complex, situated at the Danube River’s coast, to the name of Paradise. The initial auction price of the beach complex is to the amount of BGN 129 150 with VAT excluded. The offer includes an administrative building, a restaurant, a summer bar and a workshop for boats, as well as a land with an area of 4,180 square meters. A watchtower, portals, parking, and an artificial beach have been built on it. The deposit for participation in the tender is BGN 12,900, while the starting price is BGN 14,300 VAT excluded.
Source: 24 chasa (26.08.2012)

American company Westinghouse is selected for the feasibility study for the 7th unit of Kozloduy NPP The American company Westinghouse has been selected to execute the feasibility study for the construction of the 7th unit of Kozloduy NPP, FOCUS News Agency announced. In the presence of the Minister of Economy, Energy and Tourism Delyan Dobrev today was signed a contract with the company. Its purpose is to provide the contractor socio-economic analysis, economic feasibility assessment and analysis of the available technological options for the new power. The procedure involved five companies, as Westinghouse is selected for the best offer. The evaluation committee has completed its work last week. EUR 999,500 is the final offer. The price is reduced by 16% from the initially proposed, the Minister of Economy, Energy and Tourism Delyan Dobrev said. It is to be made an evaluation of the impact on the environment and geological survey, for which implementation will be selected other companies. Expectations are that they will not exceed the price of BGN 5-6 million. For comparison - the same feasibility study and EIA geological survey for Belene NPP project worth about EUR 32 million, he said. The deadline for the socio-economic analysis is March 2013.
Source: Other (28.08.2012)

Westinghouse to Carry out Feasibility Studies for Kozloduy Unit 7 Westinghouse Electric Company has received a contract to perform a feasibility study on a potential seventh unit at Bulgaria’s Kozloduy Nuclear Power Plant. The required study will encompass a review of two potential designs: a reactor of WWER design utilizing equipment already purchased by the customer together with Westinghouse instrumentation and control (I&C) systems, fuel and a Toshiba Corporation turbine generator, and the construction and operation of a pressurized water reactor (PWR) 1000-1200 MW design. The scope of the feasibility study includes an evaluation of the site, radioactive waste and spent fuel management, reuse of existing infrastructures and facilities, licensing, local economic aspects, and the profitability of the two reactor designs. The Kozloduy Nuclear Power Plant has an excellent operational and safety record, which provides a strong basis to host an additional reactor at the site, Westinghouse has pointed out in a press release. Five companies had submitted documents to develop a project for the new Unit 7 of Bulgaria's Kozloduy NPP. The companies were Westinghouse, French Areva, Areva in a consortium with Mistubishi, Bulgarian company Risk Engineering and Australian Worley Parsons. The initial assesment must be ready some 7-9 months after concluding the contract; by the end of 2013 the company must choose the site for the new Unit 7. At present, only the 1000 MW units 5 and 6 are operational at the Kozloduy NPP, after Bulgaria agreed to shut down the 440 MW units 1-4 in 2002 and 2006 as part of its EU accession talks under pressure from Brussels.
Source: Standart (28.08.2012)

One of notorious representatives of the dark side of Bulgarian capital market - company Polimeri JSC controlled by Nikolai Banev does not stop with the surprises. Management of the chemicals company offers to vote a dividend of nearly BGN 55 million, or BGN 22.10 per share, at the forthcoming general meeting in October. This happens amid almost stopped operations, increasing losses, number of complaints and lawsuits against the company for debt and even bankruptcy proceedings. Its assets are tendered and its employees only receive part of their salaries with several months delay. The data submitted to the BSE - Sofia for the upcoming General Assembly does not specify for which year is the profit that is to be distributed. One thing is clear - last year Polimeri reported a loss of BGN 10 million, a year earlier - BGN 31 million. The future state of the company is questioned by auditors as well. Auditor Rosa Georgieva stated that it is uncertain whether Polimeri will continue to operate as enforcement cases for nearly BGN 9.8 million have been brought against the company as to the end of March.
Source: Capital (04.09.2012)

Bulgaria Seeks Investor for 49% of Kozloduy NPP "Bulgaria will seek a strategic investor for 49% of the capital of Kozloduy NPP - New Capacities," the director of the company Lyuben Marinov stated for economymagazine.bg. "The purpose is that Bulgaria keeps its majority share in Unit 7 of Kozloduy NPP," Mr Marinov commented. "The new unit 7 of the nuke will be protected with the most modern safety systems," Lyuben Marinov added. The new safety systems will become clear after the elaboration of the technical and economic analysis by the US company Westinghouse.
Source: Standart (05.09.2012)

Boyko Borissov: Our relations with Russia do not depend on a company's demands “We don't have to mix Bulgarian-Russian relations with a company's demands for compensation for the Belene NPP,” Bulgarian PM Boyko Borissov said on Thursday. “The friendship with Russia dates back centuries and this will continue in the future. But this is not the case with some company, which participated in all of those processes together with its agents in Bulgaria, mainly in the communist-socialist party. Let MPs say how those bills were run up and reveal them. When we were in the Sofia underground, they told me that the money invested in the Belene NPP so far was much more than the funds spent for the underground in Sofia,” Borissov added. “I did not expect that at all. Therefore, I think that President Putin has not been informed either, but if he has been informed, I expect that he takes decision, because we are strictly fulfilling our commitments on the South Stream. We have pledged that we will pay the rest for the 7th power unit and we will receive it, but as to the 8th power unit, we have to file documents specifying when we will build it. There are contracts. It is clear that these contracts are not normal contracts – they state neither the prices, nor the terms, nothing,” the Prime Minister said. He added that Bulgarian-Russian relations didn't have to be involved. “Here is a company, which dared to do that. If they want to go to court, we will sue them. But I am convinced that President Putin, if he learns that, will not be pleased, because he will come on November 9 to sign the South Stream deal and we will ask him these questions directly. There is no way that they will persuade me to the opposite, because when a power unit of EUR 200 mln is bought for EUR 78 mln and then operates in a perfect way and produces electricity, it should not be charged EUR 1 bn afterwards... Except for using that as tactics, of course. I don't know. We signed all provisions of the South Stream contract, so that we will have nothing to discuss on November 9, we will only need to sign the contract itself. Therefore, this is not an issue that could put pressure on us,” Borissov said.
Source: Class (14.09.2012)

The New Reactor Fits Kozloduy NPP "The producer reactor for Belene NPP could be installed as Unit 7 of Kozloduy NPP," the deputy director of Russian state-run company Rosatom, Kiril Komarov stated, cited by Interfax agency. "Atomstroyexport's 1-billion-euro claim, daughter company of Rosatom, against the Bulgarian National Electric Company (NEC) does not mean that the reactor once meant for Belene NPP cannot be installed as Unit 7 of Kozloduy NPP through a suitable project," Mr Komarov commented. Mr Komarov pointed out that two reactors were ordered for Belene NPP and the second one is nearly ready while the Kozloduy NPP could take only one reactor with the construction of a new unit. According to Mr Komarov, Bulgaria has not demanded the termination of the contract for the production of the equipment for Belene NPP yet and part of the equipment is still being produced. Mr Komarov stated that due to this reason the claim of Atomstroyexport worth 1 billion euro is justified as it is based on the work accomplished, inclusive of the production of the equipment and the claim is not kind of a sanctions or fines.
Source: Standart (14.09.2012)

Bulgarian Energy Holding (BEH) announced a competition for rating agency. The mega company involves the largest state-owned energy companies - NPP Kozloduy, NEK, TPP Maritza East 2, Mines Maritsa Iztok, Bulgargaz, Bulgartransgaz and Bulgartel. The money from the issue will be used to help the two troubled companies - NEK and Bulgargaz. The announced competition for rating agency is divided into two stages - credit rating and its transformation into issue. The first phase should be completed at most for two months, and the second – for a month and a half. The competition can be entered only by agencies, which over the past three years have performed at least 3 successful agreements on rating energy companies with a turnover of at least EUR 1 billion. Furthermore, their previous guarantors must have successfully issued bonds for a minimum of EUR 250 million.
Source: Trud (17.09.2012)

Russia has no intention of sharing information with energy company Westinghouse regarding a feasibility study Westinghouse is doing for the construction of on a potential seventh unit at Bulgaria's Kozloduy Nuclear Power Plant, a report says. Russia "will not under any circumstances transfer any documents or technologies" to Westinghouse regarding the potential use of Russian equipment initially intended for the Belene NPP project at Kozloduy, ITAR-TASS reports, citing a source in the Russian atomic industry. The Bulgarian government decided to build a 7th unit at the existing Kozloduy NPP after it gave up on the construction of a second Bulgarian nuclear power plant in Belene back in March 2012. In August, Westinghouse Electric Company received a contract to perform a feasibility study on the potential new unit. The required study will encompass a review of two potential designs: a reactor of VVER design utilizing equipment already purchased by the customer together with Westinghouse instrumentation and control (I&C) systems, fuel and a Toshiba Corporation turbine generator, and the construction and operation of a pressurized water reactor (PWR) 1000-1200 MW design. The scope of the feasibility study includes an evaluation of the site, radioactive waste and spent fuel management, reuse of existing infrastructures and facilities, licensing, local economic aspects, and the profitability of the two reactor designs. Last week, Atomstroyexport, a subsidiary of Russia's state-owned Rosatom, increased its claim over the cancelation of the Belene NPP project to EUR 1 B. The case of Bulgaria having to reimburse Atomstroyexport for scrapping plans to build a second Nuclear Power Plant in the Danube town of Belene is tried by the International Court of Arbitration in Paris. On Tuesday, Atomstroyexport expressed firm belief it will pocket EUR 1 B in compensation over the cancellation of Belene. However, Bulgarian officials have argued that the Russian company's increased claim would not stand any chance in court.
Source: investor.bg (19.09.2012)

Bulgarian Mines Contract Risk Engineering for Energy Efficiency Bulgarian company Risk Engineering AD has been contracted to boost the energy efficiency of the heavy mining equipment at the state-owned Mini Maritsa Iztok EAD (Maritsa East Mines). The work of the contractor is financed with EUR 4.565 M under the EU program for the decommissioning of the old reactors of the Kozloduy NPP, according to a media statement of the coal mining company. Risk Engineering AD has been assigned the construction (design, delivery, installation, testing and commissioning) of on-line load control of the operation of the belt conveyors and excavators and the rehabilitation (design, delivery, installation, testing and commissioning) of the power supply system to enable energy management of equipment through remote reading and power quality analysis. The project is to be wrapped up in 104 weeks, or two years. The contract with Risk Engineering AD has already been signed. The company was selected via a tender held in line with the rules of the European Bank for Reconstruction and Development (EBRD). This is the second of three projects for energy efficiency rehabilitation of the Maritsa Iztok Mines financed under the Kozloduy International Decommissioning Support Fund (KIDSF) with a total of EUR 21.5 M. The grant provided to the Maritsa Iztok Mines by the KIDSF amounts to 70% of the total cost, while the remainder is co-financing.
Source: Dnevnik (26.09.2012)

Russian Company Bids in Kozloduy NPP Tender Russian company Rosatom Overseas has submitted documents for participation in the tender for elaboration of the Environmental Risk Assessment (ERA) in connection with the construction of Unit 7 of Kozloduy NPP, a source well informed about the Bulgarian nuclear industry informed the RIA Novosti. Not long ago, the project company Kozloduy NPP - New Capacities invited a tender for the elaboration of the ERA for the construction of Unit 7 in Kozloduy NPP. The information was confirmed by the Executive Vice President of Rosatom Overseas Leos Tomicek. “It is true that we have recently submitted a bid for the invited tender on the environmental risk assessment act for the new unit of the Kozloduy nuclear power plant. Bulgaria is our traditional partner in nuclear power engineering that is why our interest to this kind of projects is understandable,” Tomicek said. After the Belene NPP project was frozen the Bulgarian government has an idea to install the reactor, which Atomstroyexport and its subcontractors originally built for the Belene nuke, at Unit 7 of the Kozloduy plant. The new facility should be a cross between a Russian reactor and a turbine generator designed using Western technology. Experts recon that Unit 7 of the Kozloduy nuke may be set in operation by 2024.
Source: Standart (11.10.2012)

Bulgaria Wants EUR 450 M for Decommissioning of Kozloduy Nuke Bulgaria demands from the EU a compensation worth 450 million euro payable till 2020 for the decommissioning of Units 1, 2, 3, 4 of the Nuclear power plant in the Danube town of Kozloduy. The initially planned sum amounted to 208 million, Foreign Minister Nikolay Mladenov explained. He, along with the Minister for EU Funds Management Tomislav Donchev took part in the debates on the financial framework of the EU cohesion funds for the next program period – 2014-2020. The Committee of the Regions took a firm stand against the planned aids ceiling fixed at 2.5 percent of the individual countries’ GDP. The countries that do not keep fiscal discipline, whose macroeconomic parameters are deteriorating will not receive any grants from the EU after 2013, Donchev reminded.
Source: Standart (18.10.2012)

Dobrev: We are not secretly constructing the Belene NPP On Sunday, Minister of Economy and Energy Delian Dobrev denied in front of BNR allegations by the opposition that the cabinet of Borissov is secretly continuing the construction of the Belene NPP. The suspicions of the right-wing opposition, namely the Blue Coalition, were triggered by a letter to the Mayor of Svishtov by Marin Angelov, manager of Trafoelectroinvest. In the letter, he asked for the construction of a high-voltage line providing a connection for future facilities that will be built on the site of the Belene NPP. "The actions of Marin Angelov aroused suspicions among the opposition, and especially in the Blue Coalition, that we are 'secretly' building the Belene NPP,''said Delian Dobrev on BNR and added that because of this Angelov was fired on Thursday. The Minister assured that no public money has been spent on the request of Marin Angelov and expressed his hope that there will be no other similar cases. "If this government wanted to build, and if it thought that we could finance it, it wouldn't have stopped the project for the Belene NPP as early as in March," emphasised Delian Dobrev. "We have absolutely no concerns about the extension of the service lives of the 5th and 6th units of NPP Kozloduy," added Delian Dobrev. According to him, the head of the plant Valentin Nikolov was in Moscow in connection with the modernisation of the reactors. According to him, this is the first priority of the government in the energy sector. Moreover, the new block to the existing plant could be built in 10 years. The Minister added that the plant in Belene would be built in a shorter period, but he explained that the construction of a new unit at the Kozloduy NPP is worth it.
Source: Class (22.10.2012)

The revenues of the Bulgarian Energy Holding (BEH) JSC for the first nine months of 2012 were double the amount for the same period of last year, showed the published financial report of the Finance Ministry. The gross profit for January-September is almost equal to the revenues, totaling BGN 560.86 mln, while last year’s profit before taxes was BGN 235.1 mln. The gross profit of Bulgartransgaz for the period amounted to BGN 94 mln, up from BGN 83 mln last year. The Kozloduy NPP concluded the first nine months of 2012 with a pre-tax profit of BGN 142.6 mln, compared to BGN 178.2 mln for the same period of last year. The company’s revenues amounted to BGN 655.1 mln, registering a slight decrease of 2.4%, compared to the same period of 2011. Proceeds from electricity accounted for the largest share (95%) in the structure of revenues from the overall operation of the plant. These decreased by BGN 25.75 mln (4.03%), mainly due to the 3% drop in the electricity sold during the period, compared to 2011. The costs incurred for the activities of Kozloduy NPP amounted to BGN 515.4 mln. For the first nine months of 2012, another company of BEH – the National Electric Company (NEK) accumulated a loss of BGN 77.2 mln, compared to a profit of almost the same amount for January-September 2011. This is due to the low selling wholesale prices of electricity on the regulated market, as the company has already warned. However, after the hike of electricity prices as of July 1, 2012, NEK posted a profit for Q3 of the year, as per preliminary data.
Source: Trud (05.11.2012)

EU President Rompuy proposes less funds for phasing out Kozloduy NPP EU President Herman Van Rompuy proposed that only ˆ185 million should be allocated to the phasing-out of Kozloduy NPP in the next 7-year EU budget (2014-2020). Bulgaria had initially requested ˆ450 million, Trud daily informs. The EU has approved two series of compensations for Kozloduy NPP so far: ˆ550 million by 2009 and ˆ300 million by the end of 2013. 24 Chasa and Sega dailies add that Mr. Rompuy has made a compromise proposal in an attempt to satisfy demands of a number of member states to cut expenditure without risking key EU policies. 24 Chasa daily also informs that the European Commission has proposed that Bulgaria receives ˆ208.5 million. Another article in Trud daily comments that the European Commission’s proposal contradicts PM Boyko Borisov, who claimed that Bulgaria will certainly receive ˆ400.2 million by the end of 2012.
Source: Class (15.11.2012)

Units 3, 4 of Kozloduy NPP Turn Radioactive Waste Management Facilities Bulgaria's government declared Wednesday units 3 and 4 of the Kozloduy Nuclear Power Plant radioactive waste management facilities. The two units are to be managed by the State Enterprise 'Radioactive Waste' (SE-RAW) and their status changes from public state property to private state property, according to the press office of the government. The decision is in line with the commitments made in connection with Bulgaria's accession to the EU for the shut-down and subsequent decommissioning of units 1 to 4 of the Kozloduy NPP. The unification of the units shut down for decommissioning and their conversion into facilities to be managed by SE-RAW aims to optimize the overall process and to reduce expenses for the exploitation of the functioning units of the Kozloduy NPP. The transfer of units 3 and 4 of the N-plant to SE-RAW aims to create conditions for observing safety standards and legal requirements. According to the government's press release, SE-RAW is the sole holder of an exploitation license for radioactive waste management facilities, including at the Kozloduy NPP site.
Source: econ.bg (22.11.2012)

EIA Launched for Unit 7 of Bulgaria's Kozloduy NPP Project company Kozloduy NPP New Capacities signed Monday a contract for an environmental impact assessment (EIA) of the investment proposal for the construction of new nuclear capacity at the site of the Bulgarian N-plant. The EIA report is to be prepared by the Bulgarian-Spanish consortium Dicon- Acciona Engineering, which won a tender. The value of the contract is nearly BGN 2 M, VAT excluded, while the term for the completion for the EIA is 9-12 months. Lyuben Marinov, Executive Director of the Kozloduy NPP New Capacities project company, explained Monday that the EIA would have to take into account the cumulative impact of the new capacities on the surrounding municipalities, including on Romanian territory. He added that the terms of reference included all requirements presented by Romania's Environment Minister. Verginia Dimitrova, authorized representative of the Bulgarian-Spanish consortium, explained that the project would involve over 40 specialists, including international ones. The Bulgarian representative in the consortium, Dicon Group, is a company with 17 years of experience in the consultancy services industry. One of the latest projects of the company involved field work on Natura 2000 areas in Bulgaria. Spanish consultancy Acciona Ingenieria was established in 2010 after the merger of 2 other companies with over 50 years of experience in the spheres of environment, engineering, and regional development. The company has completed projects in over 40 countries on 5 continents. The contract signing was attended by Valentin Nikolov, CEO of the Kozloduy NPP, who declared that the tasks preceding the final decision on the construction of a seventh unit at the N-plant were getting completed one after the other. The Bulgarian government decided to build a seventh unit at the Kozloduy NPP in April The Bulgarian government decided to build a 7th unit at the Kozloduy NPP in April after quitting the project for the construction of a nuclear power plant in Belene. Subsequently, the Borisov government decided to install the 1000 MW reactor already produced for Belene by Russian contractor Atomstroyexport, a subsidiary of Rosatom, at the existing plant in Kozloduy. Finance Minister Simeon Djankov has assured that the new unit is to be designed and built on a commercial basis, without government guarantees, and without using taxpayers' money. At present, only the 1000 MW units 5 and 6 are operational at the Kozloduy NPP, after Bulgaria agreed to shut down the 440 MW units 1-4 in 2002 and 2006 as part of its EU accession talks under pressure from Brussels. The Bulgarian government has also initiated a program to extend the life of Units 5 and 6 by at least 20 years as their life is set to expire in 2017 and 2019 respectively
Source: Darik Radio (27.11.2012)

V. Nikolov: We expect EIA for unit 7 of Kozloduy NPP in September “In September, we should have the final environmental impact assessment (EIA) report for the construction of a new 1,000-megawatt unit at the Kozloduy NPP. We have asked to include in the contract all the notes demanded from us by Romania’s Minister of Environment and Water,” Valentin Nikolov, Executive Director of the Kozloduy NPP, stated on BNR on Sunday. The contract also projects public discussions within the 100-km zone around unit 7, Romania included. “Before the Council of Ministers decides to build unit 7, three key things must take place: a feasibility study, a geological survey and a selection of the site, and an EIA,” he said, adding that the three contracts have already been signed. For the 25 years since it was built, unit 5 of the Kozloduy NPP has generated more than 13 million MWh of electricity. Currently, the generators operate at full capacity and I believe they are some of the safest in Europe. In the last 10 years, ˆ0.5 bn have been invested in their safety,” stated Nikolov.
Source: Class (03.12.2012)

EU opens investigation into Bulgarian Energy Holding for possible abuse of dominant position The European Commission said on Monday it has launched an investigation whether state-run Bulgarian Energy Holding (BEH) is abusing its dominant position on the wholesale electricity market in Bulgaria. “The Commission has concerns that BEH might be hindering competition on wholesale electricity markets in Bulgaria and neighbouring member states through territorial restrictions,” it aid in a press release published on its website. The Commission will investigate certain provisions in electricity supply agreements entered into by subsidiaries of BEH, which include clauses, prescribing where the electricity has to be delivered. These provisions may constitute territorial restrictions and thus both hinder competition and undermine the integration of EU electricity markets. BEH (www.bgenh.bg) incorporates the assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company and its wholly-owned subsidiary Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines.
Source: Capital (04.12.2012)

Bulgaria's Nuclear Plant among World's Best - Expert Bulgaria's sole nuclear power plant, Kozloduy, is among the world's best, Bulgarian nuclear expert Sergey Tsochev has declared. Tsochev, chair of Bulgaria's Nuclear Regulation Agency, has told the Bulgarian National Radio that he is satisfied with the results of the International Atomic Energy Agency's three-week safety review of the nuclear power plant. "The results of the mission are good and that will be made clear once the report is made public," he said. He clarified that the IAEA experts were invited by the Bulgarian government with the aim of receiving safety recommendations. The International Atomic Energy Agency team recommended several improvements to Kozloduy. The recommendations include creating contingency plans for severe accidents. The team has also "identified good practices used at the plant that will be shared by the IAEA with the nuclear industry worldwide."
Source: Darik Radio (15.12.2012)

The management of Bulgaria's only operational nuclear power plant Kozloduy has formally filed a request with the Sofia-based Nuclear Regulation Agency for a permit for the construction of what will become its 7th unit. Thus, the NPP Kozloduy – New Capacities EAD firm has asked for a permission to determine the location of a new construction site for the plant's third 1000 MW unit, the Cross news agency announced. The selection of a construction site is the first stage from the technical licensing procedure for the construction of a new nuclear reactor. At the of November 2012, project company Kozloduy NPP New Capacities signed a contract for an environmental impact assessment (EIA) of the investment proposal for the construction of new nuclear capacity at the site of the Bulgarian N-plant. The EIA report is to be prepared by the Bulgarian-Spanish consortium Dicon- Acciona Engineering, which won a tender. The value of the contract is nearly BGN 2 M, VAT excluded, while the term for the completion for the EIA is 9-12 months. Lyuben Marinov, Executive Director of the Kozloduy NPP New Capacities project company, explained that the EIA would have to take into account the cumulative impact of the new capacities on the surrounding municipalities, including on Romanian territory. He added that the terms of reference included all requirements presented by Romania's Environment Minister. Verginia Dimitrova, authorized representative of the Bulgarian-Spanish consortium, explained that the project would involve over 40 specialists, including international ones. The Bulgarian representative in the consortium, Dicon Group, is a company with 17 years of experience in the consultancy services industry. One of the latest projects of the company involved field work on Natura 2000 areas in Bulgaria. Spanish consultancy Acciona Ingenieria was established in 2010 after the merger of 2 other companies with over 50 years of experience in the spheres of environment, engineering, and regional development. The company has completed projects in over 40 countries on 5 continents. The Bulgarian government decided to build a 7th unit at the Kozloduy NPP in April after quitting the project for the construction of a nuclear power plant in Belene. Subsequently, the Borisov government decided to install the 1000 MW reactor already produced for Belene by Russian contractor Atomstroyexport, a subsidiary of Rosatom, at the existing plant in Kozloduy. Bulgarian Finance Minister Simeon Djankov has assured that the new unit is to be designed and built on a commercial basis, without government guarantees, and without using taxpayers' money. At present, only the 1000 MW units 5 and 6 are operational at the Kozloduy NPP, after Bulgaria agreed to shut down the 440 MW units 1-4 in 2002 and 2006 as part of its EU accession talks under pressure from Brussels. The Bulgarian government has also initiated a program to extend the life of Units 5 and 6 by at least 20 years as their life is set to expire in 2017 and 2019 respectively. (inews.bg)
Source: Other (15.12.2012)

The state-run Bulgarian Energy Holding (BEH) expects to post a profit of some 36 million levs ($24.4 million/18.4 million euro) this year on gross revenue from sales of 6.46 billion levs, the company’s chief executive officer said on Thursday. The company plans a bond of no less than 350 million euro ($465.1 million) in 2013 and expects to be assigned a credit rating by Fitch by the middle of January before proceeding with the issue. It has not been decided how the proceeds will be spent, Mihail Andonov told a press conference in Sofia. BEH (www.bgenh.bg) incorporates assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, NEK and its wholly-owned system operator Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines. The company’s assets equal 12.8 billion levs while its capital is 8.84 billion levs. About 22,600 people work for BEH.
Source: Capital (21.12.2012)