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Nuclear Safety Account to grant ECU 24 million to upgrade Kozleduy Plant in Bulgaria
The Assembly of Donors of the Nuclear Safety Account, which is administered on behalf of 12 donor countries by the European Bank for Reconstruction and Development, today approved a grant of ECU 24 million to upgrade the safety level of the Kozloduy nuclear power plant in Bulgaria. A grant agreement was signed by Nikita Shervashidze, Deputy-Chairman of the Committee of Energy for the Bulgarian Government, Liulin Radulov on behalf of the Bulgarian electric utility NEK and Thierry Baudon, Director of the Infrastructure, Energy and Environment Department of the European Bank.
The Nuclear Safety Account was set up on 22 March 1993 within the European Bank at the request of the Group of Seven nations. The Account became effective on 14 April. Up to now, 12 donors (Canada, Denmark, Finland, France, Germany, Italy, Japan, Norway, Sweden, Switzerland, UK and US) and the EC have pledged over ECU 115 million.
The project will assist Bulgaria in achieving the objectives which the Government has adopted, to close Units 1-4 at Kozloduy as soon as the country's energy situation allows. Specifically, the project helps to establish a clear programme that is technically and financially feasible, which will facilitate the earliest possible closure of Units 1 and 2, and subsequently Units 3 and 4. In parallel, the project provides equipment that will achieve significant safety benefits during the final years of operation of the Units.
In parallel with the project, the Government intends to reinforce BNSA through the creation of a technical support organisation, and Bulgaria will take the necessary steps to join the Vienna Convention and conform with its protocols on third party liability
Under the project, the Bulgarian Government has confirmed that it intends to shutdown Kozloduy Units 1 and 2 as soon as upgrading work is completed on either of the more modern 1000MW Units 5 or 6 at Kozloduy, and when the Chaira pump-storage hydro station currently under construction is completed, which is expected by spring of 1997. Units 3 and 4 will operate until both Units 5 and 6 at Kozloduy and three district heating cogeneration units are upgraded. Subject to availability of financing, this could be done by the end of 1998.
Timothy Walker, Chairman of the Assembly of donors, said: "The donors welcome this project, which is the first to be financed by the Nuclear Safety Account. The project will bring significant safety benefits and its speedy preparation was possible thanks to the effective ground work carried out by the Bulgarian authorities since 1991 with the assistance of Western experts, in particular through the World Association of Nuclear Operators (WANO) in the framework of an EC-funded programme."
Yanko Yanev, Chairman of the Bulgarian Nuclear Safety Authority (BNSA), said: "This project is very important because it will enable the Bulgarian electric authority to fulfil some of its regulatory obligations to improve plant safety with new hardware. This is the right way to do things concretely."
Thierry Baudon said: "The project will provide equipment for operational and technical safety improvements in Units 1-4 which is urgently needed to enhance the safety level for a limited remaining period of operation. The equipment includes fire protection devices, vessel inspection equipment, safety valves, electrical components, a new emergency feedwater system to cool the reactor, and safety parameter display system for the control rooms."
Project implementation will be handled by the Bulgarian utility, Nationalna Elektricheska Kompania (NEK), which will set up a Project Management Unit in Kozloduy. International experts in procurement, accounting and project management will assist the Unit. Engineering and design work will be performed by the Bulgarian engineering company, Energoproekt. Procurement of equipment for the project will be undertaken through open tendering amongst donor countries and east European firms. Completion of the project is expected within about 18 months.
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