Bulgaria's government decided to scrap the project for construction of a 2,000 MW nuclear power plant in the Danube town of Belene, the council of ministers informed. PM Boyko Borisov explained that the estimated cost of the project of some EUR 10bn (EUR 6bn in construction costs and the rest interest on a possible loan from the Russians for the project) was too expensive. PM Borisov highlighted also that the parties have failed to find a European strategic investor. The cabinet plans to install the already produced generator on the site of the country's sole nuclear plant in Kozloduy, also on the Danube River. However, the process will take at least five years and the state should pay additional EUR 120mn for the reactor. The cabinet confirmed plans to build a modern gas-fuelled power plant on the site where part of the foundations of the Belene plant have already been raised. So far, the government has spent BGN 1.4bn (EUR 715.8mn) related to the project in addition to BGN 500mn loan, extended BNP Paribas, the PM elaborated.

The decision for the construction of a power plant in Belene was taken back in 1981 and the former communist regime had invested about USD 1bn before freezing the project in 1990. In 2002, the authorities reopened the project and the new one for building a third-generation nuclear power plant was awarded to Russia's AtomStroyExport under a EUR 4bn deal in 2006. Six years later, Germany's RWE Power won a tender for taking over 49% in the company that will administer construction works and operate the Belene plant, which according to the initial plans should have been fully operational in 2015. The current centre-right CEDB government put the project under serious scrutiny when it came into power in the summer of 2009. In September 2009, the Russians announced that the project may cost up to EUR 6bn and a month later RWE withdrew, explaining its decision with the world economic crisis and failure to complete the financial structuring and the signing a contract for engineering, supply and construction works. Eventually, the project was frozen again and the cabinet asked UK bank HSBC to consult the project. Meanwhile, AtomStroyExport threatened several times exiting the project. The Russians and the Bulgarian authorities have signed 14 annexes to the preliminary contract for additional works related to the project and have delayed taking the final decision up till this month (March 2012).