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HSBC to get 1% of Belene's final cost if price proves advantageous - report

HSBC to get 1% of Belene's final cost if price proves advantageous - reportUK bank HSBC, which was selected by Bulgaria's government in late 2010 to advise it on the Belene nuke project, will get a EUR 2.7 million consultancy fee to assess the plant's cost-effectiveness, national radio BNR reported on Tuesday. The consultant will receive an additional 0.95% of the project's final cost if it proves that Belene is economically justified.

When contacted by Dnevnik, Bulgaria's economy ministry declined to confirm the rumoured terms of the contract with HSBC, which is expected to be finalised in the coming days.

Commenting on HSBC's remuneration, economy minister Traicho Traikov said the bank would get a fixed consultancy fee of EUR 2 million. The fee also a has a non-fixed part, which will hinge on the structure of Belene's financing, with the rate for the bank's payment having been set at 0.95%, he said as quoted by news agency Focus.

Last week, Bulgaria's state-owned electricity utility NEK and the Russian contractor for Belene, Atomstroyexport, agreed to put "maximum efforts" towards signing a final contract for the nuke plant's construction by June 1, 2011.

If the parties fail to settle all issues related to the project's development by that date, the deadline could be extended, Traikov said in an interview with television channel bTV on Tuesday. "We have the capacity and capability to protect the national interests," he said.

13 April 2011 - Dnevnik

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