Hungarian authorities are considering replacing Russia’s Rosatom as the main contractor for the expansion of the Paks nuclear power plant. The government has begun examining alternative options, Reuters writes.
The government of Prime Minister Peter Magyar is expected to make a final decision on the Paks NPP expansion at the end of this year or early next year.
According to a source familiar with the project review, the authorities are considering all possible options, including changing the main contractor. The assessment will determine the legal, technical, financial and timing implications of replacing the supplier, and will also examine the project’s financial viability.
Another source close to the Hungarian government said the authorities are leaning towards continuing the Paks NPP expansion, but without Rosatom’s involvement.
The project was initially estimated to cost €12.5bn. By the time the first concrete was poured in February, Hungary’s spending on it had already exceeded €2bn.
According to the publication, five amendments were made to the original contract with Rosatom. A sixth amendment was prepared but not signed.
What is known about Hungary’s deal with Rosatom?
- The agreement to build two new reactors at the plant was signed by Orban in Moscow in 2014. The project envisaged up to €10bn in Russian state financing. In 2016, Orban called the arrangement the “deal of the century”.
- Despite Russia’s full-scale invasion of Ukraine, Budapest continued to maintain close energy ties with Moscow.