EC Closes Case Against Hungary Over Paks 2 Contract For Russia

18 Nov (NucNet): The European Commission has ended proceedings against Hungary over the award of a contract to Russia’s state nuclear corporation Rosatom to expand the Paks nuclear power station, although it is still investigating the country’s funding for the project. The EC has not made any comment, but the case is listed in an EC legal ledger as having been closed on 17 November 2016. According to Reuters, the EC is still investigating Hungarian funding for the plan. The EC has said it was concerned that the Hungarian investment in the project might not be compatible with market pricing and in November 2015 opened an in-depth investigation into the business case for the construction, operation and decommissioning of the two reactors. The EC said at the time that the Hungarian government awarded the construction of two new reactors and the refurbishment of two additional reactors at Paks “without a transparent procedure”. The Hungarian government confirmed in a statement on its website that the EC no longer disputes Hungary’s right to come to an agreement with Russia regarding the Paks 2 project and a related credit facility. An agreement signed in 2014 would see Russian enterprises supply two VVER-1200 reactors for Paks 2, as well as a loan of up to €10bn ($10.6bn) to finance 80% of the project. Hungary said it expected the investigation into funding for Paks 2 to be closed next week. The statement said there is “a realistic chance” that construction of the units can begin in 2017 or 2018. In September 2016 Paks 2 received an environmental permit. Last month, a site licence application was submitted with the national regulator.