The committed funds for Decommissioning of Units 1-4 – result of a Cost Estimate


The total cost for implementation of the entire Kozloduy NPP Units 1 to 4 Decommissioning Programme for the period from 2003 to 2030 was estimated based on an accurate Cost Estimate for the project, which was updated in 2017.
The Cost Estimate was prepared in accordance with International Structure for Decommissioning Costing (ISDC) of Nuclear Installations (ISDC 2012) by a team from State Enterprise Radioactive Waste (SERAW)*, and has been approved by the Management Board of the Enterprise and by the Boards of Directors of Radioactive Waste Fund and Nuclear Facilities Decommissioning Fund. The Cost Estimate was justified in succession at different levels in front of the respective institutions of the European Union. The arguments, which have shown a financial gap until 2030 of about 91 million euro for the successful completion of the Kozloduy NPP Units 1 to 4 Decommissioning Programme**, were accepted. Following the Conclusions of the European Council of 21 July 2020, additional EUR 56 million for the Multiannual Financial Framework (MFF) 2021-2027.

Similar is the approach of granting financial support for the Decommissioning Programmes of early shutdown nuclear power plants in another two European countries – Lithuania and Slovakia, for Ignalina NPP and Bohunice NPP respectively.
* By means of two governmental decisions in 2008 and 2012 years, the Decommissioning Programme of the shutdown 440 megawatt nuclear reactors was assigned for implementation to the national operator for radioactive waste management, State Enterprise Radioactive Waste (SERAW).
**In November 1999, the Bulgarian Government and European Commission signed a Memorandum of Understanding containing a schedule for stepwise shutdown of the VVER-440 Units at Kozloduy NPP. As a result, Units 1 and 2 were shut down at the end of 2002, and Units 3 and 4 – at the end of 2006.

Additional information
The funds necessary for decommissioning of the shutdown 440 megawatt nuclear reactors are provided through international and national funding.
In June 2000, the Kozloduy International Decommissioning Support Fund (KIDSF) was established, administered by the European Bank for Reconstruction and Development (EBRD), in order to support the decommissioning activities and to mitigate the negative consequences of the units’ early closure. The KIDSF is funded by the European Union. The rest contributors are:  Austria, Belgium, Denmark, France, Greece, Ireland, The Netherlands, Spain, Switzerland and United Kingdom.
The KIDSF is governed by the Assembly of Contributors providing strategic guidance. EBRD is providing technical, project management, financial, legal and administrative services. Project financing is conditional upon the Assembly of Contributors being satisfied that Bulgaria is in compliance with its closure commitments. Meetings of the Assembly of Contributors are held biannually.
The Bulgarian funding is provided by two national funds – Radioactive Waste Fund and Nuclear Facilities Decommissioning Fund. A separate financial contribution to the implementation of the Decommissioning Programme is also owing to Kozloduy NPP by funding, at the beginning of the process, of specific activities related to spent fuel management.