The first attempt at completing an eastern NPP with western help and financing (see WISE NC 430.4239) seems to have failed. A big NGO-campaign against the completion of the NPP in Mochovce has turned out to be a success. The European Bank for Development and Reconstruction (EBRD) has backed out from financing the project.
(433/34.4283) Phil Weller - Although the EBRD has not issued an official statement on the matter, its is clear, based on information from highly-placed and reliable sources in Slovakia, leaked documents, and the actions of the Slovak Government that:
- Slovakia will not get western financing for Mochovce, and
- efforts are now needed to put alternatives to the Mochovce plant in place and block a Slovak/Czech/Russian effort to complete the plant.
The clearest indication of the decision of the Slovak government not to pursue any further the EdF/SE/EBRD project is the firing of the two key officials in the Industry Ministry who had promoted western involvement in the project.
Four of the five members of the board of Slovakian Energie Utility (SE) (all of whom supported the SE/EdF project) have been fired from their positions as board members. Only the chairman remains. The decision was made 4 May, during a meeting of the National Property Fund, the state monopoly which controls SE. The decision was not publicly announced. When asked about the decision, NPF officials declined to explain the decision.
The chief shareholder representative to the NPF told Reuters "The National Property Fund exercises its rights as a shareholder, which include making changes in the SE Board." A number of analysts in Slovakia see the change as confirmation that Slovakia no longer wants to pursue the EdF/EBRD project and will instead try to complete the plant with the help of Czech and Russian firms and financing.
According to highly-placed and reliable sources in Slovakia, the report of the Slovak government on alternatives for financing the completion of Mochovce, which has just been finished, dismisses the original EBRD option as too expensive and involving conditions that Slovakia is not willing to fulfill. An official announcement on the decision has not yet been made public but the sources we contacted have indicated that the original EBRD financing scheme is dead. The Slovak government is interested in completing Mochovce at a lower cost and with funding from elsewhere. The government also believes that the EBRD and EdF can be convinced to participate in a joint venture with Czech and Russian firms. This idea is highly unrealistic. The newly-installed director of fuels and energy at the Slovak Finance Ministry, Pavel Bilicky, told Reuters, "The government has stepped into (the Mochovce project) and will ensure that it finds financing by itself".
Slovak Prime Minister Meciar was in Russia May 9 and had discussions with the Secretary of Security, with Finance Minister Vladimir Panskov and Atomic Energy Minister Michajlov. He also met with Premier Chernomyrdin. According to the Slovak press, the Prime Minister discussed Russian financing for Mochovce and a joint venture with Russian/Czech/French and German companies to complete the plant. According to Meciar the Russians have said that US$45 million is available for the project. A financing plan for the Skoda offer presented by Meciar to the Russian government involves elimination of project management costs. In a statement a few days later, Meciar confirmed that the Russians were ready to participate in the project. He said, however, that Slovakia proposed that a consortium made up of the French Electricite de France, the German Siemens and the Czech Skoda companies and the Russian Nuclear Power Ministry should complete Mochovce.
According to the Czech News Agency, Economy Minister Jan Ducky said in mid-May that Slovakia was "willing to complete Mochovce to be driven by an alternative fuel if this could happen in the originally stipulated time with the same output and cost." He concluded, however, by saying that "no one can do this, because it is impossible." Environment Minister Jozef Zlocha said that the conversion of Mochovce to gas was not possible because the construction of the nuclear plant was already far too advanced. He clarified however that no new nuclear power stations would be built in addition to Mochovce.
Analyzing this mess
We have stopped western financing for the Mochovce Project. Slovakia is not willing to meet the conditions set down by the EBRD to fund completion of Mochovce and they still dream (unrealistically) of being able to get a cooperative project with western firms, Czechs/Russians, EBRD financing, etc. This is simply a dream. EdF will not participate in such a project and the EBRD will not consider funding anything other than the original proposal. The credibility of the current Slovakia government has been completely undermined, as far as the western financial institutions are concerned. According to sources inside the EBRD, it is highly uncertain whether the EBRD will make an official announcement to declare the project dead. The EBRD apparently does not want to be seen as saying no to the project - they want the Slovaks to say they don't want the EBRD funding anymore. For this reason, it may be some time - maybe never - before we get an official declaration that the project is dead. The Slovaks appear very reluctant to announce any formal plans and still publicly promote the options of a mix of the old EdF and the new Skoda proposal with EBRD funding. This option is not realistic: EdF is not interested and EBRD, definitely not. Even as knowledgeable sources have already assured us that the original project is dead, the firing of key Economy Ministry and SE officials is an unofficial public acknowledgement that the original project has no support within the Slovak government.
Stopping western financing for Mochovce is a major accomplishment. The Slovak government however is continuing to look for ways and means to complete Mochovce and keep Bohunice V1 in operation. The closure of Bohunice V1 and preventing the completion of Mochovce by Czech/Russian firms with funding from Czech and Japanese banks must now be our targets. The activities which are most likely to bring these about are:
- Posing a challenge to Czech banks (and Japanese banks) that may be interested. Raising the issue of liability - who is responsible if an accident does occur - may be an effective tool in this effort.
- Continued EU pressure on Slovakia not to complete Mochovce at lower safety standards than previously proposed. The EU (European Parliament in particular) was important in the first phase of our campaign. It is extremely important for people in EU countries to continue to put pressure on their governments and members of Parliament.
- Support for alternatives must be given. To date, the Slovak government has indicated absolutely no interest in alternatives. Despite the lack of government interest, it is possible to support alternatives. All possible forms of support should be explored. In future updates, we will try to report on possibilities.
- Continued support to those opposing Mochovce within Slovakia. The Slovak NGO community has achieved a remarkable success in building opposition to Mochovce. This movement will need additional support in the future for all its efforts. Specific mechanisms for the international community to support such efforts must be developed.
Source & Contact: Phil Weller, Global 2000,
Flurschützstr. 13, 1120 Vienna, Austria,
Tel +42-22-812 5728,
E-mail: global2000@link-atu.comlink.de
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