Polish state-owned nuclear project company Polskie Elektrownie Jadrowe (PEJ), responsible for the construction of Poland’s first NPP, said it had received 26 preliminary offers from banks supporting the debt financing for the project, with the total amount several times greater than the required debt capital. A consultation period with more than 30 banks from Europe, Asia and North America over the last quarter of the year showed firm investment interest.
The support comes after a statement from the European Commission approving public aid estimated at PLN60bn ($16.5bn) for the project. During the three-month market sounding PEJ representatives, together with the financial advisor, provided over 300 answers to questions regarding, among others, the support mechanism notified to the European Commission, the dialogue with export credit agencies to date, the work implementation schedule, and issues related to nuclear safety.
PEJ was supported in the market sounding process by a consortium of BNP Paribas and KPMG as financial adviser. The next step will be due diligence involving pre-investment analysis enabling both export credit agencies and commercial banks to submit binding offers and begin negotiating credit documentation.
In November 2022, the then Polish government selected Westinghouse AP1000 reactor technology for the NPP, to be built at the Lubiatowo-Kopalino site in the Choczewo municipality in Pomerania. An agreement setting a plan for the delivery of the plant was signed in May 2023 by Westinghouse, Bechtel and PEJ. In September 2023, an engineering services agreement was signed with Westinghouse and Bechtel to finalise a site-specific design for the three-unit NPP.
The total investment costs of the project are estimated to be about PLN192bn with debt financing accounting for 70% of the investment cost and the remainder coming from Poland’s state budget. In July 2024, the Ministry of Climate & Environment issued a decision-in-principle for PEJ to construct the plant. According to the draft update of the Polish Nuclear Energy Program (PPEJ – Program Polskiej Energetyki Jądrowej) commercial operation of the first unit is to begin in 2036.
PEJ said the 26 offers from banks were in addition to the declaration of intent to collaborate in the project from export credit agencies. These letters of intent showed support from 11 agencies totalling close to PLN 100bn. US credit agencies have shown the greatest interest, with pledges from the Export-Import Bank of the United States (Exim) and the US Development Finance Corporation (DFC) totalling around $19bn, with Exim accounting for about $17.8bn.
“This is a clear confirmation of the changing perception of nuclear energy and growing recognition of its key role in the future global energy mix,” said Wojciech Wrochna, Secretary of State at the Energy Ministry. “The results of the conducted study are very optimistic and measurably confirm the willingness of both Polish and international banks to get involved in our project. The information we have obtained during the process that has just been finalized will allow us to give the project’s financing structure its final shape. The completion of the market soundings successfully concludes the work planned for this year to provide financing for the project.”
According to PEJ, the next step will be a pre-investment analysis phase in which both export agencies and commercial banks will submit binding offers and begin negotiations on the credit documentation. PEJ president Marek Woszczyk was optimistic about the results of the market sounding. “The information we have obtained during the recently completed process will allow us to give the final shape to the financing structure of the project,” he said.
Poland has already approved funding of PLN 60bn in equity funding to cover its 30% of investment costs in the plant. Work is expected to start on the construction of the first of the three units in 2028.
