Bulgaria partners with Citi for financing of new Kozloduy units

Citi's role will be as exclusive coordinator and lead arranger of export credit, with the Bulgarian ministry saying the partnership "is a clear sign of the strong trust that international stakeholders place in Bulgaria and its energy sector".

Energy Minister Zhecho Stankov said: "The agreement with Citi is a significant step toward the successful realisation of this priority energy project for the government. The construction of Units 7 and 8, which will be the first reactors in Europe using Westinghouse’s AP1000 technology, will ensure the country’s energy independence and long-term stability."

Stephanie von Friedeburg, Global Head of Public Sector Banking at Citi, said: "Citi is proud to be at the forefront of financing low-carbon energy solutions. The Kozloduy expansion represents a landmark transaction, one of the first large-scale projects of its kind. This project is pivotal for Bulgaria's energy future, and Citi is committed to providing the financial expertise to make it a reality."

The amount of finance required for the project has not been disclosed, but in December 2023 ministers said that the aim was to achieve a price of about EUR6 billion (USD6.5 billion) for each of the units. According to the energy ministry it will be the bank's largest nuclear financing project in central and eastern Europe.

Background

Kozloduy is home to two operating VVER-1000 reactors that were connected to the grid in 1987 and 1991, respectively, and together provide around a third of Bulgaria's electricity. Both units have been through refurbishment and life-extension programmes to enable extension of operation from 30 to 60 years. Four older VVER-230 units were closed ahead of Bulgaria joining the European Union in 2007.

The USA and Bulgaria signed an intergovernmental agreement to cooperate on the development of Bulgaria's civil nuclear programme, including the plan for the new units at Kozloduy, in early 2024, and Hyundai Engineering & Construction, Westinghouse and Kozloduy NPP-New Builds signed an engineering contract in November. The aim is for unit 7 to be operational in 2035 and unit 8 in 2037.