The National Electricity Company (NEC) has encountered problems in the negotiations with France’s BNP Paribas for signing a final deal for leading and structuring bank in the EUR 4bn project for construction of a 2,000MW nuclear plant in the Danube town of Belene, according to information unveiled by the state power system operator. In April, the energy ministry announced that BNP Paribas won the competition for structuring bank against another French contender, Societe Generale. The deal was expected to be signed by end-May. NEC now implies that it will wait for a compromise by Wednesday (Jun 4) and will start negotiations with the other candidate, Societe Generale, if no progress is reached in the talks with BNP Paribas. According to NEC, the main problem is related to the condition set by BNP Paribas to receive a service fee even in case that no financing is arranged for the project. The bank has separately seal a deal for syndicating a five-year EUR 250mn bridge loan for engineering, equipment supply and construction works during the first year of the project.

NEC is expected to select a strategic investor for 49% of the company set to administer construction works and operate the nuclear plant in Belene by the end of July. Germany ’s energy company RWE Power is reportedly leading the race for the stake against the other shortlisted candidate Belgium ’s Electrabel. The two bidders should present final offers by Jun 24. The state will retain the majority of 51% in the shareholders’ capital. Russia ’s AtomStroyExport has already signed the contract to supply and install the two power reactors of the plant. The first unit of the nuclear plant is expected to start operations in early 2014 and the second one in 2015.