(April 24, 1998) As published in the last issue the European Bank for Reconstruction and Development decided in their closed March 25 workshop to start the Public Participation Process needed to proceed with the financing of Khelmitsky 2/Rovno 4.
(490.4860) WISE Amsterdam - Although the EBRD seems to agree with the Stone and Webster findings that finishing the two reactors in the Ukraine is the least-cost option, they committed themselves to not start financing untill all 5 principal EBRD-criteria's for nuclear projects will be met. These 5 criteria are;
- Financial (repayment ability)
- Economic (is it the cheapest way to produce electricity)
- Procurement and Implementation
- Nuclear safety, specific requirements
- Environmental and specific consultations, set of rules and requirements
The nuclear safety and economic aspects of the project have been reviewed by Stone and Webster (economic) and Sintec (nuclear safety). In a meeting with Ukrainian NGO's the EBRD representatives stressed that "not meeting any of the other three requirements would prevent the EBRD from making the loan". The bank will now be focusing on the other three aspects. One of these is the public participation process, one of the necessary specific consultations, starting with the publication of the so-called Environmental Impact Assessment, expected to be ready end of April or early May.
Another interesting move seems to be that the EBRD now says it will (if any) only finance a really small part of the whole project; previously it was supposed to be about 30%. Now the Bank, although not confirmed, says it will be less than 50% of the previous total, wich would be 15% of the total at the maximum. The whole K2/R4 project costs are now estimated at US$1.6 billion.
Sources: Emails, Bankwatch network, 6 & 10 April 1998
Contact: CEE Bankwatch, Peter Hlobil, Kratka 26, Praha 10, Prague, Czech Republic. Tel& fax: +42-2-781- 6571
Email: Petr.hlobil@ecn.cz