Hungary is examining whether to replace Rosatom, the Russian state nuclear company, as main contractor for the expansion of the Paks nuclear power plant, and has begun studying alternative proposals, Reuters reported, citing its sources. One source said all options are under consideration and that the review will establish the legal, technical and financial consequences of changing supplier, its effect on the project timetable, and whether the switch is financially worthwhile; a second source, close to the government, said officials are leaning toward the conclusion that the expansion is necessary but should proceed without Rosatom, and that working with a European company would ease the foreign policy and sanctions context.
No decision has been taken. The project was awarded to Rosatom without a tender in 2014, was first costed at 12.5 billion euros and had already cost Hungary more than 2 billion euros by the pouring of first concrete in February, and dropping Rosatom could require writing off 1.1 billion euros already paid plus penalties for breach of contract, UNIAN reported. Prime Minister Peter Magyar’s government, which backs nuclear power, is expected to decide late this year or early next, and is separately considering 20 year licence extensions for the plant’s four existing Russian built reactors, whose licences expire between 2032 and 2037.