December 6 (SeeNews) - Bulgaria’s National Electricity Company (NEK) will pay 601.6 million euro ($646.24 million) to Atomstroyexport by the end of the week as compensation for the equipment manufactured by the Russian company for the scrapped Belene nuclear power plant project, the Bulgarian Energy Ministry said on Tuesday.
"After the Ministry of Enegry transferred the sum to NEK today, the company will make the payment awarded in the arbitration case. The sum will be paid into Atomstroyexport's account by the end of the week," the Energy Ministry said in a press release.
The compensation was awarded to Atomstroyexport by the International Court of Arbitration in Geneva earlier this year. The court ruled that NEK must pay 601.6 million euro to Atomstroyexport, a subsidiary of Russia's Rosatom, as compensation for ditching the project for the construction of a 2,000-MW nuclear power plant in Belene, on the Danube river.
The two companies signed an agreement on October 26, under which NEK has to pay the full amount due on or before December 25.
Under the agreement, if NEK pays the sum in full on or before December 15, 2016, Atomstroyexport will withdraw its claim to receive 23.8 million euro in interest on the sum accumulated since the court issued its ruling on June 14.
In March 2012, Bulgaria decided to abandon the Belene project, choosing instead to add a new 1,000 MW reactor to its existing 2,000 MW nuclear power station in Kozloduy.
($ = 0.9309 euro)