Mar 02, 2006 -- BBC Monitoring
One of the companies owned by Russian billionaire Viktor
Vekselberg is prepared to invest several hundred million US
dollars in a new nuclear power plant in Hungary, or into the
construction of two new blocks at the Paks nuclear power plant,
according to Moscow newspaper reports on Thursday.
The state-owned Hungarian Electrical Works (MVM),
owner of the Paks nuclear power plant, has signed a cooperative
agreement with the KESZ (Kompleksznije energeticseszkije
szisztyemi) energy holding corporation and with Atomstroyexport, a
nuclear power plant construction company during Russian President
Vladimir Putin's visit to Budapest, Russian business newspapers
reported. KESZ is part of the Renova group of companies controlled
by Vekselberg. In the memorandum signed in the presence of Sergey
Kiriyenko, head of the Russian Nuclear Energy Agency, KESZ
declares its preparedness to finance jointly with the MVM an
extension of the working life of the Paks power plant and an
increase of its performance by 15 -20 per cent. Participation in
the reconstruction of the Paks power plant would require KESZ to
contribute between 150m dollars and 200m dollars. This would be
the first time KESZ invests in the nuclear industry and it would
be its first investment outside of Russia, according to the
Russian newspaper Biznes (Business). Beyond modernizing the power
plant, the MVM wants to build two new blocks in Paks jointly
financed with KESZ, and Atomstroyexport would be the main
contractor of course, according to Vedomosti . The two blocks
would cost 2bn dollars, according to market analysts queried by
the Vedomosti reporter. According to Biznes, they are planning to
build a new nuclear power plant, one that would require a KESZ
investment of 1bn dollars. Although Hungary's EU membership makes
the construction of a new power plant difficult, it does not rule
out that possibility, an expert told the Russian newspaper. The
memorandum of agreement is valid until 2007; it does not include
specific amounts however: it only provides a framework for
reaching separate business agreements.
Source: Nepszabadsag website, Budapest, in Hungarian 2 Mar 06
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