Link to the study - European Parliament - Europa

Policy Department D: Budgetary Affairs
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waste stemming from decommissioning and from current operating plants. Another example is the
physical protection facilities shared between operating plants and plants to be decommissioned.
Such projects may qualify for co-funding from the Funds, provided that the recipient can conclusively
justify which part of the costs is attributable to the decommissioning program. The Bank assesses
such proposals as part of its due diligence review, to ensure that the cost-sharing logic is sound and
based on an as accurate as possible a factual basis.
Procurement is key in the project implementation process. It is the recipient’s responsibility to carry
the process out to a high professional standard and in line with the Bank’s procurement policies and
rules. The Bank follows the process closely, and the Bank’s formal 'no-objection' is required at
important milestones. This means that the process foresees time for a detailed review by the Bank of,
for instance, tender documents and evaluation reports. The review typically includes the Bank’s
Procurement Department. The Bank may also engage external technical expertise if required. The
process can only continue once the Bank confirms that it has no reason to object. This process often
leads to clarifications and amendments to documents. The Bank’s procurement complaint
mechanism is available to any bidders in procurement processes undertaken within the framework of
the decommissioning programs.
The Bank’s close involvement in project implementation is designed to give the Bank the best
possible chance of picking up as early as possible on project issues which could potentially cause
schedule delays and cost increases. As far as appropriate, the Bank facilitates efficient co-operation
between recipient and contractors and resolution of issues, recovery of delays and joint commitment
to cost efficiency.
The Bank exercises very thorough financial controls over activities of the international
decommissioning support funds. In addition to the controls and mechanisms provided by the Bank in
line with requirements in its Banking operations, the Nuclear Safety Department keeps separate track
of all contract information and disbursement data. The financial statements for each of the Funds are
externally audited annually, as are all of the Bank’s accounts. The three international
decommissioning support funds have all recently been the subject of financial audits by Moore
Stephens approved by the Assemblies. The three audits confirm that appropriate financial controls
are in place.
Plasma Melting Facility in Kozloduy
The Bank categorically rejects the unfounded statement that this project is an example of
mismanagement. The project was developed in line with the processes described above and has
been subject to thorough reviews. It has received all the necessary approvals and is on track to
successful completion.
The decommissioning strategy for Kozloduy Units 1-4 foresees the conditioning of solid radioactive
wastes with a high volume reduction factor. The technical specification issued for tender did not
prescribe any specific technology. The market response to an open competitive tender resulted in
proposals using plasma melting technology – not only by the winning bidder. During project
implementation, no particular risks were identified with regard to plasma melting and its associated
technologies. The technical design, the detailed design and Intermediate Safety Analysis Report
(ISAR) have been approved by Kozloduy NPP. The ISAR went through independent verification review
and received a positive conclusion. The technical design and ISAR are currently under final review by
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