Paks II Nuclear Power Plant tenders are coming

After a long period of uncertainty, Paks II Nuclear Power Plant project has finally got the green light for implementation. The project may cost EUR 10 billion and a total of 6000 items may be purchased/supplied via the tenders. The main contractor Rosatom may an- nounce the tenders for suppliers of the Paks II Nuclear Power Plant at the end of May or June. The countdown for the deal of the century has started. Stay tuned.

In our previous editions we reported that Hungary plans to grant investment support for the construction of two new reactors on the Paks site in Hungary (Paks II). The aim of the Paks II project is to replace the four reactors currently operating in Paks which were built in the 1980s and provide approximately 50% of the domestic electricity produc tion.

Hungary considers that the construction of new nuclear reactors is inevitable considering the constantly growing capacity of demand. According to the prognosis, energy consumption increases 1% per year which cannot be met by the current outdated power plants.

While the details of Paks II were confidential, it became public that the main contractor for the project would be Rosatom and that the Hungarian Government borrowed EUR 10 billion from Russia to finance the construction. No wonder that Paks II was considered "the deal of the century" in Hungary.

The fate of Paks II was uncertain for a long time because the EU Commission was investigating whether Paks II project distorted competition in the energy market as a result of Hungarian state support.

Finally, in March 2017 the Commission cleared Paks II project on the basis of Hungarian commitments to limit distortion of competition. Also, Paks II has recently received all the necessary Hungarian operational permits (such as site permit and environmental impact permit) to launch the construction work.

Now that Paks II has finally received a green light for implementation, Atomstroy export (subsidiary of Rosatom) may announce the tender for suppliers of the project. The official language of the tenders will be Russian, but this should not present an obstacle as US and European companies usually participate in tenders of Atomstroy export. It is expected that a total of 6000 items may be purchased/supplied via tenders.

The countdown for the deal of the century has started. Stay tuned.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.