Bloomberg News

Bulgaria Files $81 Million Arbitration Claim Against Rosatom

October 06, 2011

Oct. 6 (Bloomberg) -- Bulgaria filed a 61 million-euro ($81 million) claim against Rosatom Corp. in a dispute over the construction of a nuclear plant on the Danube.

The state-owned National Electricity Co. applied to an arbitration court in Geneva to claw back the sum from Rosatom for unpaid purchases of old equipment, the Sofia-based utility said today in an e-mailed statement.

In July, Atomstroyexport ZAO, a unit of Rosatom, Russia’s state-run nuclear company, said it had filed a 58 million-euro claim against Bulgaria to the International Court of Arbitration in Paris for delayed construction payments.

Atomstroyexport was hired in 2005 to build the plant for an initial cost estimate of 4 billion euros. The project then stalled because of a lack of funds and a dispute over new costs caused by the delay. Rosatom gave a new cost estimate of 6.3 billion euros, while Bulgaria said the construction would cost about 5 billion euros.

Last month, the two companies agreed to extend an accord to March next year on the building of the proposed 2,000-megawatt nuclear power plant, to give them time to complete a feasibility study and consider ways of financing the project.

“We can’t take decisions to spend such huge amounts with our eyes closed,” Energy and Economy Minister Traicho Traikov said today in an interview with Bulgarian National Television in Sofia. “We need to know the cost of investment, power market development prospects, estimated electricity prices.”

--Editors: Stephen Cunningham, Amanda Jordan.

To contact the reporter responsible for this story: Elizabeth Konstantinova at ekonstantino@bloomberg.net To contact the editor responsible for this story:


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