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25 March 2012, Issue 287
by Novinite.com
Bulgaria's Online Weekly Newspaper since 2001
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Top Story
Rosatom Offers Bulgaria Yet Another Extension of Belene NPP ContractRussia's state-owned nuclear corporation Rosatom has made it clear it is ready to agree on yet another extension of the contract with the Bulgarian government for the construction of the Belene nuclear power plant. The currently active extension of the 2006 deal between Bulgaria's National Electric Company NEK and Rosatom's subsidiary Atomstroyexport is set to expire at the end of March 2012. "If the mutual requirements are fulfilled, we can discuss an extension but only after we receive the Bulgarian position," Rosatom CEO Sergei Kiriyenko told Interfax on Friday. Kiriyenko stated the Russian nuclear corporation would like to know what extension Bulgaria wants, what its justification for that would be, and if Bulgaria guarantees that it will honor its commitments in a new agreement. The Rosatom chief emphasized that "the Bulgarian partners" have not presented their offers for the future development of the Belene NPP project. "At least once monthly the Bulgarian officials make contradictory statements in the media," he said, reiterating his statement from earlier this week that Rosatom had been tired of waiting for the Bulgarian government to make decisions on Belene project. Kiriyenko explained that if it gives up on the NPP, Bulgaria can purchase from Atomstroyexport the nuclear reactor that it has produced for the Belene NPP. At the same time, however, he made clear his doubts about the feasibility of installing the reactor in question at Bulgaria's only existing NPP at Kozloduy, since this could take between 5 and 7 years. 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. The contract between Bulgaria's National Electric Company NEK and Russia's Atomstroyexport, a subsidiary of Rosatom, was extended by the end of March 2012. The greatest issue over which Bulgaria and Russia have been haggling for the past two years under the Borisov Cabinet has been the price of the project, with Russia insisting it should be no less than EUR 6.3 B, while Bulgaria is demanding a price of no more than EUR 5 B. After selecting the Russian company Atomstroyexport, a subsidiary of Rosatom, to build a two 1000-MW reactors at Belene and signing a deal for the construction, allegedly for the price of EUR 3.997 B, with the Russians during Putin's visit to Sofia in January 2008, in September 2008, former Prime Minister Stanishev gave a formal restart of the building of Belene. At the end of 2008, German energy giant RWE was selected as a strategic foreign investor for the plant. The Belene NPP was de facto frozen in the fall of 2009 when the previously selected strategic investor, the German company RWE, which was supposed to provide EUR 2 B in exchange for a 49% stake, pulled out. In November 2010, shortly after a visit to Sofia by Russian PM Putin, Bulgaria's National Electric Company NEK and Russian state company Rosatom signed a memorandum providing for a final fixed price for the two reactors of EUR 6.298 B. According to the non-binding memorandum expiring on March 31, 2011, Bulgaria's NEK will have a share of 51% in the Belene NPP, Rosatom � a share of 47%, Finnish company Fortum - a share of 1%, and French company Altran Technologies - a share of 1% with an option to increase it. Serbia has expressed interest in acquiring a share of 5%-10% but the talks for that have not been finalized yet. In mid-March 2011, apparently acting on concerns caused by the situation in Japan's Fukushima NPP after the recent devastating earthquake there, the European Commission confirmed that it wants to reexamine the Belene NPP project - once Bulgaria finds an investor for it - even though it already approved it back in 2007. In April 2011, the Bulgarian government formally signed a consulting contract with UK-based company HSBC (which won the tender in November 2010) for the financial analysis for the project for the construction of the Belene nuclear power plant. Bulgaria will be paying HSBC EUR 2 M for its services plus 0.95% of the end price of the Belene NPP if it is realized. This means that if HSBC declares the Belene NPP project to be economically feasible, and it is constructed, it will get a fee of EUR 47.5 M if the plant costs EUR 5 B. Another important issue plaguing the Belene NPP project that surfaced in the recent week is the mutual financial claims of the two parties over sums allegedly owed for the delivery of new equipment and buyout of old equipment for the future plant, with Atomstroyexport recently filing an EUR 58 M suit against NEK with the International Arbitration Court in Paris, and NEK responding with an EUR 61 M suit in Geneva. 
Bulgaria PM Slams Ex EconMin for 'Talking Rubbish', Laying Traps Bulgarian Prime Minister Boyko Borisov has accused Traicho Traikov, former Minister of Economy, Energy and Tourism, of setting traps for the GERB government, of deliberately obstructing projects and of "talking plain rubbish". Borisov's attack against Traikov, who was asked to resign last week over the disgrace at the business forum in Qatar, comes one day after Deputy Prime Minister and Finance Minister Simeon Djankov announced that the ex-Minister would be invited to work for the Cabinet. In a Friday interview, however, Borisov told journalists that he had given up on the idea to appoint Traikov as his advisor, adding that he had lost trust in him. According to unconfirmed reports cited by news portal mediapool.bg, Traikov had no intention of accepting a job at the GERB government. "I had every intention of continuing work with Traicho Traikov, but if I do not hear him say the truth and if he fails to remove the traps he set for the new Minister, than I will be really sorry for the time I spent working with him, for the huge effort I put in him in this period of close to three years, for the freedom I gave him to decide everything at the ministry and to handle the staff as he saw fit," Borisov stated. The Prime Minister explained that he was giving Traikov the chance to come up with an explanation as to why he had spoken "such rubbish." "He is talking about things he failed to accomplish and that he knows cannot happen," Borisov snapped. The Prime Minister pointed out that the chances of a discount in gas supply contracts were rather slim, provided that it was already clear that Bulgaria was not going to build the Belene NPP solely as a Bulgarian-Russian project and after  the withdrawal from the Bourgas-Alexandroupolis oil pipeline. "I planned to leave Traikov as my advisor so that we could wrap up some of the things he is competent at doing. I repeat � given the trap he set for Delyan Dobrev, if he fails to come forward and explain these things so as to clear the way for the new Minister, if he fails to explain that it was me in person who stripped Lukoil of a license with the help of the Customs Agency (he attended all talks), I will consider that he was deliberately working against me and the government," the Prime Minister warned. Borisov went on to criticize Traikov for the scandal with Lukoil. He emphasized that the newly publicized findings of the Commission on Protection of Competition (KZK) about a cartel in the fuel sector also concerned OMV, Rompetrol and Petrol. "How come there's only talk about one company? Why would one want to shut down the biggest company in Bulgaria? What if some 5000-6000 end up unemployed, what happens then", Borisov inquired. Regarding Traikov's demand that a section of the South Stream gas pipeline should be fully owned by Bulgaria, Borisov commented that such a scenario would mean inviting a new crisis like the one with Hungary. He also castigated Traikov for the "misconceptions" he was disseminating in public space on the topic of the Belene NPP.
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Click here to read the story: www.novinite.com/view_news.php?id=137811 Austrian Commercial Counselor in Sofia Michael Angerer: Bulgaria's Volume of Austrian FDI Is Impressive Click here to read the story: www.novinite.com/view_news.php?id=137753 M-Tel Bulgaria CEO Andreas Maierhofer: We'll Stay Market Leader, Definitely Click here to read the story: www.novinite.com/view_news.php?id=137722 Doing Business in Austria? Willkommen! Click here to read the story: www.novinite.com/view_news.php?id=137716 Vienna Bourse Management Board Member Michael Buhl: Bulgaria's Market Needs Liquidity, Innovation Click here to read the story: www.novinite.com/view_news.php?id=137690 ABA Consultant Peter Loeschl: Austria Convenient Place for Bulgarian Firms to Go Int'l Click here to read the story: www.novinite.com/view_news.php?id=137685 EVN Bulgaria Board Chairman Jörg Sollfelner: Bulgarian Electricity Distribution Sector Needs Steady Pace of Investment Click here to read the story: www.novinite.com/view_news.php?id=137679 'Kohl & Partner' Managing Partner André Gribi: Lack of Brand Bulgaria's Biggest Problem Click here to read the story: www.novinite.com/view_news.php?id=137401 Cargo-partner Managing Director Anton Stoykov: Bulgaria Is Attractive Market for Freight Forwarding Companies Click here to read the story: www.novinite.com/view_news.php?id=137248 *5 Bugarians Arrested in Florida for Credit Card Fraud Click here to read the story: www.novinite.com/view_news.php?id=137635 Ambassador Gerhard Reiweger: Austrian Business Has Great Share in Bulgaria's Positive Development Click here to read the story: www.novinite.com/view_news.php?id=137676 New Stars Born in Bulgaria Click here to read the story: www.novinite.com/view_news.php?id=137761 Queuing in Sofia Click here to read the story: www.novinite.com/view_news.php?id=137713 Unlikely Union of Bulgarian Culture Policy and Modernist Creativity - Vienna's Haus Wittgenstein Click here to read the story: www.novinite.com/view_news.php?id=137813 Bulgaria and Austria � On the Artery of Europe, Connected through Past and Present Click here to read the story: www.novinite.com/view_news.php?id=137760 Alpha Bank Launches Dynamic VISA - Card that Pays You Back! Click here to read the story: www.novinite.com/view_news.php?id=137820 Alpha Housing Loan Perfecto by Alpha Bank Bulgaria Offers Fixed Rates Click here to read the story: www.novinite.com/view_news.php?id=137819 France to Go For Tougher Hate Speech Laws after Murders Click here to read the story: www.novinite.com/view_news.php?id=137829 Obama Nominates Dartmouth College President Kim to Head World Bank Click here to read the story: www.novinite.com/view_news.php?id=137826 Whitney Houston Drowned after Cocaine Use Click here to read the story: www.novinite.com/view_news.php?id=137806 SEEMO Alarmed by Hate Speech over Macedonian-Albanian Ethnic Clashes Click here to read the story: www.novinite.com/view_news.php?id=137799 Toulouse Killer Dies as French Police Seige Ends Click here to read the story: www.novinite.com/view_news.php?id=137787 IMF Approves EUR 500 M Loan for Romania Click here to read the story: www.novinite.com/view_news.php?id=137776 French Police Stage Explosions at Toulouse Shooter Standoff Click here to read the story: www.novinite.com/view_news.php?id=137775 Ukraine Refuses to Decriminalize 'Tymoshenko Statute' Click here to read the story: www.novinite.com/view_news.php?id=137771 Egypt Prevents Attack on Ship in Suez Canal Click here to read the story: www.novinite.com/view_news.php?id=137764 Bulgarian Ballet Dancer Dies in Philadelphia after Hit-and-Run Click here to read the story: www.novinite.com/view_news.php?id=137741 6.2-Magnitude Earthquake Jolts Papua, Indonesia Click here to read the story: www.novinite.com/view_news.php?id=137739 Croydon Police Station Blast Leaves 7 Injured Click here to read the story: www.novinite.com/view_news.php?id=137738 Massive Quake Jolts Mexico's Pacific Coast Click here to read the story: www.novinite.com/view_news.php?id=137736 Same Gun Used in France's 3 Deadly Shootings Spree Click here to read the story: www.novinite.com/view_news.php?id=137697 Venizelos Resigns as Greek Finance Minister after Gaining PASOK Leadership Click here to read the story: www.novinite.com/view_news.php?id=137684 At Least 3 Shot Dead outside Jewish School in France Click here to read the story: www.novinite.com/view_news.php?id=137674 South Korea Accuses North of Trying to Develop Nuclear Missile Click here to read the story: www.novinite.com/view_news.php?id=137668 Terrorist Blasts in Syria Kill 29, Injure Scores Click here to read the story: www.novinite.com/view_news.php?id=137663 Mount Etna Erupts, Spews Column of Ash Click here to read the story: www.novinite.com/view_news.php?id=137661 Police Crack Down On Occupy Wall Street Spring Renewal Click here to read the story: www.novinite.com/view_news.php?id=137647 Assange to Run for Australian Senate, Mulls WikiLeaks Party Click here to read the story: www.novinite.com/view_news.php?id=137642 Macedonian Embassy in Kosovo Suffers Molotov Cocktail Attack Click here to read the story: www.novinite.com/view_news.php?id=137641 Belarus Firing Squad Executes Minsk Subway Bombing Convict Click here to read the story: www.novinite.com/view_news.php?id=137639 |
Ambassador Gerhard Reiweger: Austrian Business Has Great Share in Bulgaria's Positive Development
Austrian Commercial Counselor in Sofia Michael Angerer: Bulgaria's Volume of Austrian FDI Is Impressive
Vienna Bourse Management Board Member Michael Buhl: Bulgaria's Market Needs Liquidity, Innovation
M-Tel Bulgaria CEO Andreas Maierhofer: We'll Stay Market Leader, Definitely
EVN Bulgaria Board Chairman Jörg Sollfelner: Bulgarian Electricity Distribution Sector Needs Steady Pace of Investment
ABA Consultant Peter Loeschl: Austria Convenient Place for Bulgarian Firms to Go Int'l
Bulgaria and Austria � On the Artery of Europe, Connected through Past and Present
Unlikely Union of Bulgarian Culture Policy and Modernist Creativity - Vienna's Haus Wittgenstein
Alpha Bank Country Manager Evangelos Litras: Bulgaria's Banking Sector Is Resilient, Dynamic, Well-Managed
Bulgarian Expert Maxim Behar: PR at 5 to 12
Bulgaria Govt: Triumph of the Tame
Why Didn't Bulgaria's Borisov Ask Erdogan about Turkey's Neo-Ottomanism?
A Small Sad Story
Dismissed Today, Re-Recruited Tomorrow
Bulgaria, Turkey Launch High-Level Cooperation Council
Bulgaria's GERB Completes Cabinet Reshuffle, Appoints Rookies
Bulgaria Set to Build Gas Link with Turkey
Romania Seeks Talks with Bulgaria on 'Disputed Territory'
Toulouse Killer Dies as French Police Seige Ends
Bulgaria's Trabant Fest Shows Off 'Dinosaurs' of East German Auto Pride
Bulgaria's Stanishev Vows to 'Paint Europe Red', Backs Hollande
