Financial experts of Russia's Atomstroyexport are expected to arrive here next week to negotiate on the price of the Belene N-plant and the cost escalation charge, said NEK Executive Director Krassimir Purvanov at the NEK annual news conference.

Russia has offered a 2 billion euro loan for the construction of the N-plant. NEK is reluctant to accept such funding until all outstanding issues in regard to the Belene price have been settled. Purvanov said that the approximate price of 6.3 billion euro set down in the memorandum signed in Sofia several days ago was too high.

The price is 2.4 billion euro higher than the initial price because the cost escalation charge has been calculated based on Russia's inflation rate index, said Purvanov. NEK will insist that the cost of all roject activities is calculated based on the Eurostat 27 index and a Bulgarian inflation index.

Taking a question, Purvanov said that the cost of the project could rise by a mere 480 million euro if calculations are broken down according to activities. If the cost escalation charge is calculated based on inflation rate in Bulgaria it will be 1.48 billion euro, added Purvanov.

All recommendations by the Nuclear Regulatory Agency on the Belene technical designs will be tackled at the beginning of 2011, he said. Seven million euro will have to be invested in sealing the site and another 20 million euro in anti-earthquake columns to save the site's ballast pillow.

These activities are scheduled for after the end of the winter season, otherwise NEK is risking more damages if the existing facilities get destroyed.

Addressing the annual NEK news conference, Purvanov reported record-high electricity exports of 7,500 GWh by the end of 2010, double the exports from a year earlier.

In 2009, electricity exports stood at 3,693 GWh, and in the record-setting 2006 at 6,900 GWh.

The NEK Executive Director said that the company has managed to increase the power price on the Balkans by 2-3 euro, reaching an average of 45 euro per MW. A much more lucrative deal has been sealed for the export of electricity to Turkey. From the beginning of 2011, NEK will export 500 MW of electricity to Turkey. In 2011, the company projects that electricity exports will be at the level of 2010. NEK is expecting to become the top electricity exporter on the Balkans.

According to Konstantin Konstantinov of NEK's Electricity the growing exports have made up for the slump in domestic consumption. In 2010 domestic consumption is expected to grow 1.5 per cent year-on-year. An increase of between 5 and 8 per cent is projected for 2011.

In 2010, NEK liabilities have decreased, reported Purvanov. Provided the borrowing market improves in 2011, NEK is considering a 50 million leva loan to boost its liquidity. A 60 million leva debt to Kozloduy N-plant will be extended, said Purvanov. NEK's largest debtors are the Kremikovtzi steel mill and Himko chemical plant with debts of 200 and 40 million leva respectively.

Source: BTA