Bulgaria restarts nuclear power plant Belene tender

Bulgaria

The much-anticipated restart of the Nuclear Power Plant (NPP) Belene project is now a fact with the March 11 call for strategic investors on the website of Bulgaria's National Electricity Company (NEC).

Bids on this official tender are expected from companies in China, Korea, France, US and Russia.

According to the invitation, potential strategic investors can declare interest in acquiring minority participation in the future project or contract long-term power purchases from the nuclear facility. The purpose of the invitation is to provide essential information to parties wishing to participate, and includes a brief description of the project, conditions set by the Bulgarian state for the project's realisation, information required from tender participants, instructions on how to apply, and the manner and deadline for filing.

Bulgaria will participate in the project as a major shareholder in the company operating NPP Belene, and will contribute assets such as the licensed site, equipment, and all necessary decisions, permits, licenses and documentation related to the project.

Conditions have been established in the procedure to protect the interests of the Bulgarian state, including blocking quotas in the project company. NPP Belene will be developed according to market principles, without long-term power purchase agreements or other commitments by the state for the purchase of electricity.

Admittedly, these conditions may make it difficult for the future joint-venture to structure its financing, since most nuclear projects rely on long-term commitments by the host government.

Both Bulgarian and foreign companies can apply to be a strategic investor. The deadline for filing an application for participation is 90 days from the invitation's date of publication in the Official Journal of the European Union, which has not yet occurred. The general deadline for the tender procedure is 12 months after this invitation has been published.

The invitation includes nine appendices containing samples of letter of intent, and additional information on the project, the tender procedure and the Bulgarian energy market. (e.g. Appendix No. 5 gives details on the stages of the tender, how the shortlist will be prepared and access to the "data room").

The invitation and the appendices can be found on the NEC's official website or the website of the Ministry of Energy.

For more information on this tender, its possible impact on the Bulgarian energy market, and how you can apply, please contact one of our local CMS experts.