|
EBRD to administer new International Nuclear Decommissioning Funds, set up with EU support
A new impetus for supporting the closure of the oldest Soviet-designed nuclear power plants – and to allow for their final decommissioning – has been provided thanks to an initiative by the European Union.
The European Bank for Reconstruction and Development’s (EBRD) Board of Directors agreed last week to establish three new Funds to help decommission nuclear power plants in Lithuania (Ignalina), Bulgaria (Kozloduy) and the Slovak Republic (Bohunice).
The funding, to be supplied to a large extent by the European Commission, is expected to reach as much as € 500 million over a 10-year period. A number of additional contributors have indicated their interest to join the effort as well. Details about the Lithuania Fund will be discussed at the International Pledging Conference, taking place this week (20-21 June) in Vilnius. The decision to create the Funds was linked to a commitment by the three countries, which are EU accession candidates, to close the plants.
The idea is to channel grant funding to selected projects in the early phase of a decommissioning process.
The purpose of the Funds is to provide technical assistance, public information, consultancy, civil works and engineering services, and other services necessary for decommissioning. In addition, the Funds will help finance the restructuring and general modernisation of the energy sector.
"These new Funds are critical to help shut down decrepit nuclear reactors. As shown by the catastrophe of Chernobyl 14 years ago, the first-generation Soviet-designed nuclear reactors in eastern Europe are among the legacies that these countries have to deal with. However, they are not alone in tackling this issue and are supported by bilateral and multilateral assistance," said Joachim Jahnke, Vice President at the EBRD. "Promoting environmentally sound development in eastern Europe is an important aspect of the EBRD’s activities."
The funds are being set up in close cooperation with the European Commission, which is mobilising the major contribution of the EU Member States through the Phare funds. "The decommissioning of these nuclear power stations was one of the factors which allowed the European Council to take the decision to open negotiations on enlargement with Lithuania, Bulgaria and Slovakia" said Günter Verheugen, Member of the European Commission responsible for Enlargement.
The new Funds are also complementary to the Bank’s existing, extensive efforts to improve nuclear safety across central and eastern Europe. Two international grant funds, the Nuclear Safety Account (NSA) and the Chernobyl Shelter Fund (CSF), are already established at the EBRD; their projects’ value totals over € 1 billion, with the participation of 29 countries. To date, the NSA has successfully implemented a number of short-term safety improvements in first-generation Soviet-designed nuclear power plants. However, as longer-term operation of these plants is not justified, the NSA has helped direct international interest towards closing these plants and providing the necessary financial support.
The NSA, for example, is already financing about € 100 million of pre-decommissioning facilities at the Chernobyl plant in Ukraine. Work on that project is progressing well. The Government of Ukraine recently decided to implement the necessary steps towards closing the remaining operational unit at Chernobyl, and President Kuchma announced 15 December as the closure date.
At the same time, it is very important to reach a safe solution for the shelter around Chernobyl’s destroyed Unit 4. In addition to the US$ 393 million already available through the CSF, the G-7 and the European Union have recently indicated their intention to contribute another US$ 300 million. The remaining US$ 75 million will be sought at an International Pledging Conference scheduled for 5 July in Berlin. The confidence of the donor community in this project has been strengthened by progress to date – in particular, the emergency repairs that have already been undertaken to avoid the imminent threat of collapse of the roof over the exploded reactor.
|
