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Russia's Rosatom gets compensation for scrapped €10bn nuclear project in Bulgaria

EBR Staff Writer Published 12 December 2016

Russian company Rosatom has received €620m ($660m) in compensation from the Bulgarian energy firm Natsionalna Elektricheska Kompania (NEK) over the cancelled €10bn Belene nuclear project.

A plan to build Belene project near the Danube River in Bulgaria was scrapped in 2012 after failing to attract overseas investors.

In October 2006, Rosatom subsidiary AtomstroyExport was awarded a contract to build each of the 1,000MW reactors and deliver the essential equipment for the power plant.

However, in June 2016, the Court of Arbitration at the International Chamber of Commerce in Geneva had ruled Bulgaria to pay compensation for nuclear equipment ordered from AtomstroyExport for the plant.

Rosatom said it is satisfied with the repayment obligations made by NEK AED as agreed within the terms of the settlement agreement signed on 26 October 2016.

Rosatom First Deputy CEO Kirill Komarov said: “During the whole period since the Arbitration award, the Bulgarian party has been demonstrating its good faith in dealing with the matter and has proven itself as a reliable business partner.

“Bulgaria and Russia have a long history of successful cooperation in the nuclear area and the settlement relating to Belene NPP according to the Arbitration award offers new prospects for the implementation of joint projects in future.”

The first reactor, which was built for the Belene project, is planned to be transferred and installed at Bulgaria's Kozloduy nuclear power plant.

Bulgaria plans to install the parts developed for the second reactor of the Belene project, at the proposed Belene project, reported Reuters.