WRITTEN QUESTION E-2829/97 by Nuala Ahern (V) to the Commission (1 September 1997)

Subject: Macro-financial assistance package to Bulgaria

Can the Commission clarify whether the ECU 250 million macro-financial assistance package to Bulgaria approved on 13 June 1997 by Parliament, (COM(97) 234) included the proposed Euratom loan of ECU 150 million. If not, what is the status of this loan? Has it been approved by the PHARE/TACIS Nuclear Safety Expert Group? If so, under what criteria and with what conditions attached? Is the proposed loan being reviewed by the European Investment Bank, and if so, under what criteria? How does a loan for safety upgrade provide extra revenue in such a case so as to justify the expenditure, which would also provide the extra revenue with which to repay the loan financing? Will it be necessary to make a provision to the Guarantee Fund for this loan, since Bulgaria is an applicant country?

Answer given by Mr de Silguy on behalf of the Commission (17 October 1997)

There is no link between the MECU 250 macro-financial assistance package in favour of Bulgaria decided by the Council in July 1997 and the proposed MECU 150 Euratom loan.

For the latter, a loan application has been received from the Bulgarian national electricity company, and the Commission is now proceeding with the preparatory work to enable it to make a decision on such a loan.

In line with Council Decision 94/179/Euratom of 21 March 1994 amending Decision 77/270/Euratom, to authorize the Commission to contract Euratom borrowings in order to contribute to the financing required for improving the degree of safety and efficiency of nuclear power stations in certain non-member countries ((OJ L 84, 29. 3.1994. )) and its attached guidelines, the PHARE/TACIS nuclear safety expert group has already discussed the technical details of the project and submitted in July 1997 an opinion to the Commission. This opinion indicates that the implementation of the proposed modernisation programme and of the measures recommended by Riskaudit would achieve an internationally acceptable safety level. It also insists on the adequate involvement of the Bulgarian nuclear safety authorities and technical safety organisations in the licensing process and recommends that Community support should continue to be extended to the Bulgarian nuclear regulator during the licensing process. The opinion is given subject to a satisfactory conclusion of the assessment of the environmental impact of the project.

As part of the Euratom loan procedure, the European investment bank (EIB) is required to deliver a recommendation on the financial aspects of the project to be financed, for example on whether the project is suitable for loan financing or whether the borrower is likely to be in a position to service and reimburse the Euratom loan envisaged.

It is not expected that the proposed safety measures will directly provide extra revenue. However, the increased efficiency of operation should have some financial impact. This issue is expected to be addressed in the recommendation required from the EIB.

In accordance with Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 establishing a guarantee fund for external actions ((OJ L 293, 12.11.1994. )), a payment to the guarantee fund is required for all loans or loan guarantees in favour of third countries. Such payment has therefore to be made also for Bulgaria, irrespective of its status as an applicant country.