Negotiations for the construction of new units of Kozloduy NPP will be conducted only with Hyundai, MPs decided

After more than two hours of debate, the MPs adopted by one vote more the decision to negotiate with the only qualified bidder - the Korean company Hyundai - for the construction of the 7th and 8th units of Kozloduy nuclear power plant. The MPs rejected the proposal of “We Continue the change-Democratic Bulgaria” to include another bidder - the company "Bechtel" - in the negotiations.

The accepted proposal was of GERB-UDF and MRF, and the rejected one of WCC-DB. The first decision won with 112 votes in favour against 111 against. Apart from GERB and MRF, the proposal was accepted by “There is Such a People”.

In the debate on the issue, the main dispute was between WCC-DB and "Vazrazhdane". “Vazrazhdane” is against the whole project with American technology and will not support the two decisions. WCC-DB has repeatedly argued that more than one bidder should compete for the developer so that there is competition. Energy Minister Rumen Radev also took the floor and was adamant that there is a need for new nuclear power and warned that it is very easy for a project to collapse because of disputes.

The proposal of GERB-UDF and MRF envisages negotiations with the only company so far ranked - the South Korean Hyundai.

Delyan Dobrev, GERB-UDF: "Among the conditions set there is a requirement for 30% localization of the contracted construction and design work, submission of a fixed price for the entire volume of work and guarantee of the deadline for the construction of such power."

WCC-DB proposed to negotiate not only with Hyundai but also with the US company Bechtel. “Vazrazhdane” saw this as a conflict of interest because of the participation of Hristo Ivanov's brother in a committee as an adviser to the energy minister.

Kosta Stoyanov, MP from "Vazrazhdane": "Hristo Ivanov's brother, as a member of this committee, signed a decision on the basis of which, in addition to the Chinese company, the offer of an American company, which does not meet the announced criteria, should be considered."

Hyundai fears unfair competition in construction of Kozloduy NPP units 7 and 8

Energy Minister Rumen Radev confirmed that Hristo Ivanov's brother is his adviser and urged “Vazrazhdane” to also propose an expert:

"If you have a relative of yours, a proven expert in energy, in this case nuclear energy, I would be happy to have him on our team, for the simple reason that we need anyone who has the skills, the knowledge and the desire, the expertise."

According to WCC-DB, the selection process that Hyundai chose was only preliminary, and the real negotiations are ongoing and therefore should be conducted with more than one company.

Vasil Stefanov, WCC-DB MP: "Negotiations with more than one bidder would achieve a competitive environment to achieve the best price for the Republic of Bulgaria."

Two days ago, the embassy of the Republi of Korea circulated Hyundai's position saying the company had concerns about unfair competition over the proposals. The embassy stressed that it would monitor the process very closely.

Dragomir Stoynev, BSP for Bulgaria MP: "This is an example of how we can kill a project with the actions taken by the government. Why colleagues, because it is not our job - we should tell the minister to continue negotiations."

The maximum cost of the 7th and 8th units of Kozloduy nuclear power plant should be up to 14 billion dollars and the price of electricity should be below 127 BGN per megawatt-hour. The US company Westinghouse is expected to announce its first price estimate for the project by the end of March. Negotiations with the builder will take place on this basis.

Images by BGNES, BTA

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