Poland likely to earmark PLN 60.2 bln for nuclear power plant SPV, subject to EC's approval
The lower house of Poland's parliament Sejm passed a law to capitalise the SPV company Polskie Elektrownie Jadrowe (PEJ) with up to PLN 60.2 billion (EUR 14.43 bln) from the budget as a contribution to the construction of the first nuclear power plant. The recapitalisation is conditional on the EC's approval of state aid.
430 MPs voted in favour of the law, there was one against and no one abstained. Now the amendment to the law on the preparation and execution of investments in nuclear power facilities and associated investments and the law on profit contributions by single-person companies of the State Treasury, will be submitted to the upper house of Poland's parliament, Senat (Senate).
According to the act, the 100 percent State Treasury-owned company Polskie Elektrownie Jadrowe (PEJ) will receive public support for the preparation and implementation of the investment - the construction of the first nuclear power plant, with a budget expenditure limit of PLN 60.2 billion (EUR 14.43 bln).
The support will be provided in the form of an increase in PEJ's share capital through a cash contribution. It is also allowed to increase the share capital by making a contribution in form of Treasury securities.
The current version of the Polish Nuclear Power Programme (PPEJ) of 2020 envisages the construction of two nuclear power plants with a total capacity of 6-9 GW, with the 100 percent state-owned company Polskie Elektrownie Jadrowe as the investor and operator.
The previous government identified the Westinghouse-Bechtel consortium as the partner for the first power plant. It is to be built at the Lubiatowo-Kopalino location in Pomerania.
The government assumes that 30 percent of the construction costs will be covered by the investor's own funds, which will consist of the recapitalisation provided for by the law, and 70 percent - by debts contracted from financial institutions.
According to recent declarations by the government plenipotentiary for strategic energy infrastructure, the pouring of the so-called first nuclear concrete for the first reactor is to take place in 2028.
The start of commercial operation of the first unit is planned for 2036.
wkr/ pif/ mick/ ana/ ao/