The Bulgarian National Audit Office (SPRB – Smetna Palata na Republika Blgariya) has reported serious deficiencies in the management and construction of the national repository for long-term storage of low- and intermediate-level radioactive waste. The project suffered from delays, procurement violations, irregular appointments, and misallocated funds. This followed an audit of the State Enterprise for Radioactive Waste (DPRAO – Drzhavno Predpriyatni RadioAktivni Otpadtsi) for the period from January 2022 to December 2023.
The repository, a strategic site near the Kozloduy NPP was commissioned to DPRAO in 2005, with the goal of being completed by 2015. That deadline was later extended to the end of 2021. However, the extended timeline was not met. The facility is intended for storage of low and intermediate level radioactive waste generated in the country from industry, medicine, agriculture and research (institutional RAW), currently stored at the Novi Han facility at Kozloduy. The new repository is also intended to take NPP decommissioning waste.
Currently, Kozloduy NPP operates two Soviet-built VVER-1000 reactors (units 5&6). Bulgaria was obliged to close four older VVER-440 units commissioned between 1974 and 1982 as a condition for accession to the European Union. These are now being decommissioned.
Novi Han, began operation in 1964 and was transferred to DPRAO in 2006. Construction of the repository was completed in 2024, but it has not yet been put into operation pending tests and licensing by the Bulgarian Nuclear Regulatory Agency (AYaR – Agentsia za Yadreno Regulirane). A permit is now expected by the end of 2025. The total expenditure on the first phase of construction has reached approximately BGN160m ($95m) with BGN141m coming from the Kozloduy International Decommissioning Support Fund and BGN19m from Bulgarian national sources.
SPBR said: “Despite the clear objectives of the National Strategy for the Management of Waste Nuclear Fuel and Radioactive Waste, the Court of Auditors has identified several challenges that cast shadow over the efficiency and safety of the management of radioactive waste in the country.”
According to the audit, several factors contributed to the construction delay: protracted approval procedures, legal challenges from NGOs, and a range of construction complications. These included unexpected site stabilisation work, work stoppages following a fatal accident in 2019, supply chain disruptions, and rising material costs. Further complications arose in 2024 when one of the contractors in the German-Bulgarian consortium tasked with building the repository declared bankruptcy, forcing a reorganisation.
Beyond construction delays, SPBR highlighted serious issues in how DPRAO conducted public procurement. Of the 33 procurement procedures carried out in 2022 and 2023, multiple breaches of the Public Procurement Act and its regulations were recorded. Irregularities included premature contract signing, incomplete documentation, and noncompliance with requirements for the participation of enterprises employing people with disabilities. One contract was found to be nearly double the expected cost. Other contracts, worth about BGN5.7m, were awarded without proper tendering procedures. In six cases, direct awarding was used improperly for contracts exceeding thresholds that require open bidding.
Personnel policies were also criticised. Of 199 appointments and reappointments during the audit period, 97% were made without competitive selection. DPRAO attributed this to a lack of applicants, but the audit found that multiple hires lacked the required education or experience. In several instances, candidates provided outdated health certificates or lacked necessary medical assessments for work in a radioactive environment.
The procedure for appointing deputy executive directors was found to lack transparency. One board member was selected without competition, and some managerial roles were filled or changed without clear justification, sometimes reversed shortly after. One deputy executive director was found to be supervising a department he simultaneously headed, a clear conflict of interest.
The audit also found that DPRAO had used investment funds intended for capital expenditures on current operational costs, such as filters and reagents. Nearly BGN1m was spent this way by the division responsible for decommissioning Kozloduy NPP units 1-4. This violates the 2023 State Budget Act and constitutes a breach of budgetary discipline.
Overall, DPRAO received over BGN50m from the state budget in 2022 and nearly BGN53m in 2023. While spending came in slightly below budget, the misuse of funds for non-capital expenses raised serious concerns.
In response SPBR has issued two recommendations to the Minister of Energy and six to the Executive Director of DPRAO. The responsible parties must implement corrective actions within seven months.
