Bulgaria’s Energy Ministry and US Citi Bank have agreed a partnership to secure funding for the construction of units 7&8 at the Kozloduy NPP after Energy Minister Zhecho Stankov and his delegation held final talks in New York. The partnership is between Citi Bank and Kozloduy NPP subsidiary, Kozloduy NPP-Newbuild (KZNPP-NM – Kozloduy NPP Novi Mostnosti).
In February 2024, Bulgaria and the US signed a formal agreement to collaborate on the construction of two new units at the Kozloduy NPP (7&8). In January 2023, the Bulgarian Parliament by a majority vote had decided on the need to build two new reactors using AP1000 technology and obliged the government to negotiate with the US government on this issue. The following March KZNPP-NM and Westinghouse set up a joint working group to plan deployment of the AP1000 reactor in Bulgaria.
In June 2023, Westinghouse signed a Front-End Engineering & Design (FEED) contract with KZNPP-NM for a AP1000 reactor to be constructed at the Kozloduy NPP site. Hyundai E&C, part of Hyundai Corporation was subsequently selected to undertake the construction. The aim is for unit 7 to be operational in 2035 and unit 8 in 2037.
Currently, Kozloduy NPP operates two Soviet-built VVER-1000 reactors (units 5&6). Bulgaria was obliged to close four older VVER-440 units as a condition for accession to the European Union, even though the units had undergone significant safety upgrades.
“The agreement with Citi is a significant step toward the successful realisation of this priority energy project for the government,” said Stankov during his meeting with Stephanie von Friedeburg, Global Head of Public Sector Banking at Citi. “The construction of units 7&8 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 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.”
In December 2023 ministers said that the aim was to achieve a price of about €6bn ($6.5bn) for each unit. “With Citi’s proven expertise and strong global network, we will provide the necessary financial framework to deliver safe, sustainable, and affordable energy for future generations,” said Petyo Ivanov, Executive Director of KZNPP-NM.
