According to the Minister of State heading the Prime Minister’s Office, the Government will discuss the Russian-Hungarian agreement on maintaining the capacity of the Paks nuclear power plant next week. The intention is to keep it the cheapest source of electricity in the coming decades and to increase Hungary's energy independence.
At a press briefing held on Thursday, the Minister of State stressed that the Directorate-General for Energy of the European Commission did not take a stand either for or against the agreement. In November 2013, Mr. Lázár visited the organisation in Brussels, and briefed Energy Commissioner Günther Oettinger on the Government's plans to sign an agreement with Russia.
A copy of the draft contract was sent to the EU and Brussels officially notified the Hungarian Government that it held no objections. Nevertheless, a working group will be set up to facilitate cooperation with the EU's energy directorate, the Minister of State said.
It was underlined that Rosatom, while undertaking the project worth EUR 10-12 billion, must also conform to Hungarian and EU regulations, including procurement laws.
With regard to the loan to finance the project, the Minister of State said it was offered for a 30-year term and at an interest rate lower than the average market rate of around 5.6 percent. Hungary is signing a good deal, he insisted, adding that it will help turn the country into one of the most competitive economies in Europe. The Hungarian central budget will be able to finance the loan, he said, adding that the loan construction would not alter the debt curve. The cost of the loan would not be built into Hungarian electricity prices, he added.
The share of Hungarian firms in the project will be at least 40 percent, generating at least EUR 3 billion in commissions for the domestic business sector and 1 billion in tax revenue, he said.
He emphasised at the briefing that the project is not a business venture but an inter-governmental agreement.
The new reactors will be built at a good price, János Lázár said, adding that every step of the procedure will be put through a tender once Rosatom begins construction. The blocks should begin operating within ten years, he said, adding that even after the project has been completed, half of Hungary's electricity consumption will come from imports or renewable energy sources.
(Prime Minister’s Office)