Special Report No 16/2011 ‘EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges’
Date: 2012-02-10
Institutions: European Court of Auditors
Subjects: Bulgaria, EU aid, Lithuania, Slovakia, decommissioning of power stations, financial aid, nuclear power station, nuclear safety

EUROPEAN
COURT OF AUDITORS

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EU FINANCIAL ASSISTANCE FOR THE 
DECOMMISSIONING OF NUCLEAR 
PLANTS IN BULGARIA, LITHUANIA 
AND SLOVAKIA: ACHIEVEMENTS  
AND FUTURE CHALLENGES 

EN

 
 
 
 
Special Report No 16 

 2011

EU FINANCIAL ASSISTANCE 
FOR THE DECOMMISSIONING 
OF NUCLEAR PLANTS IN 
BULGARIA, LITHUANIA AND 
SLOVAKIA: ACHIEVEMENTS 
AND FUTURE CHALLENGES 

(pursuant to Article 287(4), second subparagraph, TFEU)

EUROPEAN COURT OF AUDITORS

EUROPEAN COURT OF AUDITORS
12, rue Alcide De Gasperi
1615 Luxembourg
LUXEMBOURG

Tel. +352 4398-1
Fax +352 4398-46410
E-mail: euraud@eca.europa.eu
Internet: http://www.eca.europa.eu

Special Report No 16 

 2011

A great deal of additional information on the European Union is available on the Internet. 

It can be accessed through the Europa server (http://europa.eu).

Cataloguing data can be found at the end of this publication

Luxembourg: Publications Office of the European Union, 2011

ISBN 978-92-9237-443-3

doi:10.2865/47608

© European Union, 2011

Reproduction is authorised provided the source is acknowledged.

Printed in Luxembourg

3

CONTENTS

PARAGRAPH

GLOSSARY

I–IV	

EXECUTIVE	SUMMARY

1–15	

INTRODUCTION

1–4	

5–8	

BACKGROUND

	EU	FINANCIAL	ASSISTANCE	TO	SUPPORT	NUCLEAR	DECOMMISSIONING
IN	BULGARIA,	LITHUANIA	AND	SLOVAKIA

9–15	

UTILISATION	AND	MANAGEMENT	OF	EU	FINANCIAL	ASSISTANCE

16–17	

AUDIT	SCOPE	AND	APPROACH

18–39	

OBSERVATIONS

18–24	

PROGRESS	ACHIEVED	IN	THE	DECOMMISSIONING	OF	THE	REACTORS

19–20 

 THE IDENTIFICATION OF DECOMMISSIONING ACTIVITIES IS STILL IN PROGRESS

21–22 

MAJOR INFRASTRUCTURE PROJECTS FACE DELAYS AND COST-OVERRUNS

23–24 

THE FUNDING SHORTFALL IS SIGNIFICANT

25–29	

PROGRESS	ACHIEVED	IN	MITIGATING	THE	EFFECTS	OF	THE	PLANTS’	CLOSURE

25–27 

 INADEQUATE MITIGATION NEEDS ASSESSMENT

28-29 

BROAD VARIETY OF MITIGATION ACTIVITIES FINANCED

30–39	

PROGRAMME	ACCOUNTABILITY	AND	MANAGEMENT	ORGANISATION

30–36 

WEAK ACCOUNTABILITY FOR PROGRAMMES’ PERFORMANCE

37–39 

INCOMPLETE ORGANISATIONAL CHANGES

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

	
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40–42	

CONCLUSIONS	AND	RECOMMENDATIONS

ANNEX	I	 —	

LIFE-CYCLE	OF	A	NUCLEAR	POWER	PLANT

ANNEX	II	 —	 OVERVIEW	OF	FINANCIAL	FLOWS	AS	AT	31	DECEMBER	2010

ANNEX	III	 —	 ASSESSMENT	OF	16	DECOMMISSIONING	PROJECTS

ANNEX	IV	 —	 ASSESSMENT	OF	6	MITIGATION	PROJECTS

REPLY	OF	THE	COMMISSION	

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
	
	
	
	
GLOSSARY

55

Critical	path: Common practice applied to project management includes the preparation of detailed 
project schedules identifying all tasks required to achieve the project objectives within the established 
timetable and the interrelations among these identified tasks.  

Within these schedules, the critical path covers those tasks whose implementation could influence the 
overall project timetable for implementation.  

Decommissioning	plan: The decommissioning plan is the key document supporting the entire decom-
missioning process. It contains the information describing the decommissioning concept proposed by 
the nuclear power plant. It is usually prepared before the facility permanently ceases operation and it 
requires approval by the regulatory body.  

Materials	resulting	from	the	decommissioning	process: Different materials result from the decommis-
sioning of a nuclear power plant. The following broad categories can be distinguished:

 ο Non- contaminated mater ials wi t h  co m m e rc i al  value   

 This categor y usually includ es sp ec i f i c  te c hn o lo gi c al  e qui p m ent  a nd  f u el  o r  raw  m ater i als 
such as iron or steel.

 ο Conventional waste 

Subjec t to the ver if icati on of  the  ab se nce  o f  rad i o ac t i ve  co nt am i n at i o n,   t h ey  are  di sp o s ed 
of through the  usual waste treat m ent  p lant s  an d f ac i l i ti e s.   

 ο R a dioac tive waste

This categor y covers all mater i als  af fe c te d  by  ra di o ac t i ve  co nta m i nat i o n.  Th ey  are  f u r t her 
subdivi ded according to the level  o f  rad i o ac t i v i t y   (ver y  low,  low,  i nter m edi ate  o r   hi gh )  a nd 
their  state (liquid, solid or gaseo us) .  E ac h  waste  c ateg o r y  ne e ds  to   b e  di s p o sed   t hro u gh 
specific  radioac tive waste flows.

 ο Nuclear f uel 

Whether fresh (unused) or s pent  ( use d) ,  nu c le ar  f u el  accu m ulates  m o st   o f   t h e radi o ac t i v it y 
of any nuclear power plant.  Fu el  ne ed s rep ro ce ssi n g  at  sp e c ia lis ed  p lant s.   

Nuclear	power	plant: Power plants using fissionable nuclear materials as fuel.   	

Non-upgradeable	nuclear	reactors	covered	by	the	audited	programmes: Following a study con-
ducted by the Commission in 1993 (COM(93) 635 final), two specific reactor types were considered insuf-
ficiently safe and non-upgradable: the RBMK and the VVER 440/230 nuclear reactors:

 ο ‘ R B M K ’  s t a n d s   fo r   R e a k to r   B o l s c h o i   M o s c h n o s t i   K a n a l n i j   o r   H i g h   Powe r   C h a n n e l  Ty p e   R e a c to r. 

This i s the t ype of reac tor that ex p er i en ce d  a n uc le ar  acc i de nt  at   Cher n o by l  N PP.

 ο ‘ V VER ’ stands for Vo do -Vo dyano i  En ergeti ch esk y   Re a k to r o r  Wate r-Water  Energet ic  R eac tor.

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
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Polluter	pays	principle: The ‘polluter pays principle’ originates from the 1992 United Nations Confer-
ence on Environment and Development, which established that: ‘National Authorities should endeavour 
to promote the internalisation of environmental costs and the use of economic instruments, taking into 
account the approach that the polluter should, in principle, bear the cost of pollution, with due regard 
to the public interest and without distorting international trade and investment’. 

This principle is part of the EU legal framework (see Article 191(2) of the Treaty on the Functioning of 
the European Union). 

Radioactive	waste	management	facilities	and	technologies: Radioactive waste management facilities 
and technologies are equipment, engineering skills and installations required for the retrieval, condi-
tioning, processing, transportation, storage and (whenever possible) disposal of radioactive waste.

Stress	test: Targeted reassessment of the safety margins of nuclear power plants operating in the EU in 
case of extreme events challenging the plant safety functions and leading to a severe accident.M

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EXECUTIVE 
SUMMARY

( d)   Cu r re n t l y   av a i l a b l e   f i n a n c i a l   re s o u rc e s 
(including an EU contribution until 2013 
w o r t h   2 , 8 5   b i l l i o n   e u r o )   w i l l   b e   i n s u f -
ficient  an d  the   funding  s hor t fal l  i s   sig -
n ifica nt  ( around 2 ,5 billion  euro).   

IV.
The  Cour t reco mm en ds t hat:

( a)  T h e   C o m m i s s i o n   s h o u l d   p u t   i n   p l a c e 
t h e   c o n d i t i o n s   f o r   a n   e f f e c t i v e ,   e f f i -
c i e n t   a n d   e c o n o m i c a l   u s e   o f   E U   f u n d s. 
I t sh ould establish  a detailed n ee ds as -
s e s s m e n t   s h o w i n g   t h e   p r o g r e s s   o f   t h e 
programmes so far, the ac tivities still to 
b e   p e r fo r m e d   a n d   a n   ove ra l l   f i n a n c i n g 
p l a n   i d e n t i f y i n g   t h e   f u n d i n g   s o u r c e s . 
Before fur ther spending takes place, the 
Commission should analyse the resourc-
es available and th e expec ted be ne f it s. 
T h i s   s h o u l d   l e a d   i n   t u r n   t o   o b j e c t i v e s 
b e i n g   a l i g n e d   w i t h   t h e   b u d g e t   m a d e 
a v a i l a b l e   a n d   t o   t h e   e s t a b l i s h m e n t   o f 
m e a n i n g f u l   p e r f o r m a n c e   i n d i c a t o r s 
w h i c h   c a n   s u b s e q u e n t l y   b e   m o n i t o r e d 
an d repor ted on as n ece ssar y. 

( b)  S h o u l d   t h e   E U   d e c i d e ,   a s   p r o p o s e d   b y 
t h e   Co m m i s s i o n ,   t o   p r o v i d e   f u r t h e r   f i -
n a n c i a l   a s s i s t a n c e   i n   t h e   n e x t   m u l t i -
a n n u a l   f i n a n c i a l   f r a m e w o r k ,   t h i s   s u p -
p o r t   s h o u l d   b e   m a d e   co n d i t i o n a l   u p o n 
a n   e x   a n t e   e v a l u a t i o n   o f   t h e   E U   a d d e d 
v a l u e   o f   s u c h   i n te r ve n t i o n ,   i d e n t i f y i n g 
t h e   s p e c i f i c   a c t i v i t i e s   t o   b e   f i n a n c e d 
t h r o u g h   t h e   E U   b u d g e t   a n d   t a k i n g   a c -
count of other funding facilities such as 
Str uc t ural Fun ds.

I.
I n   t h e   f r a m e   o f   t h e i r   E U   a c c e s s i o n   n e g o -
t i a t i o n s   a n d   i n   v i e w   o f   i n c re a s i n g   n u c l e a r 
s a f e t y,   B u l g a r i a ,   L i t h u a n i a   a n d   S l o v a k i a 
c o m m i t t e d   t h e m s e l v e s   t o   t h e   e a r l y   c l o -
s u re   a n d   s u b s e q u e n t   d e c o m m i s s i o n i n g   o f 
e i g h t   n o n - u p g r a d e a b l e   n u c l e a r   r e a c t o r s . 
R e c o g n i s i n g   t h e   e x c e p t i o n a l   s o c i a l ,   e c o -
n o m i c   a n d   f i n a n c i a l   b u r d e n   o f   t h e i r   c o m -
m i t m e nt s,   t h e   Eu ro p e a n   U n i o n   d e c i d e d   to 
p r o v i d e   a   f i n a n c i a l   c o n t r i b u t i o n   t o   t h e s e 
th ree cou nt r ies.   

II.
T h e   m a i n   o b j e c t i v e   o f   t h e   C o u r t ’s   a u d i t 
w a s   t o   a s s e s s   t h e   e f f e c t i v e n e s s   o f   t h e   E U 
f u n d e d   p r o g r a m m e s   ( 1 9 9 9 – 2 0 1 0 )   i n   c o n -
t r i b u t i n g   towa rd s   t h e   d e co m m i s s i o n i n g   o f 
t h e   n u c l e a r   r e a c t o r s   a n d   a d d r e s s i n g   t h e 
conseque nces  of t heir ear l y cl os ure.

III.
The Cour t  co nclu ded th at: 

(a)  A s   a   r e s u l t   o f   a   r e l a t i v e l y   l o o s e   p o l i c y 
f r a m e w o r k ,   t h e   p r o g r a m m e s   d o   n o t 
b e n e f i t   f r o m   a   c o m p r e h e n s i v e   n e e d s 
a s s e s s m e n t ,   p r i o r i t i s a t i o n ,   t h e   s e t t i n g 
o f   s p e c i f i c   o b j e c t i ve s   a n d   re s u l t s   to   b e 
ach ieved.  R esp onsib il ities are d if f us ed, 
in par t icul ar wit h regard to  mo ni tor in g 
and the achievement of programme ob -
j e c t i v e s   a s   a   w h o l e .   T h e   C o m m i s s i o n’s 
s u p e r v i s i o n   f o c u s e s   o n   t h e   b u d g e t a r y 
execut ion  and p rojec t imp lement at io n.

(b)  Th e re   i s   n o   co m p re h e n s i ve   a s s e s s m e nt 
concer ning   t he  progress  of   the  de com-
mis sio ning and  mit ig ation p roces s.  D e -
l a y s   a n d   c o s t   o v e r r u n s   w e r e   n o t e d   f o r 
key inf ras truc t ure p ro jec t s.

(c)  A l t h o u g h   t h e   re a c to r s   we re   s h u t- d ow n 
b e t w e e n   2 0 0 2   a n d   2 0 0 9 ,   t h e   p r o -
g r a m m e s   h a v e   n o t   y e t   t r i g g e r e d   t h e 
re q u i re d   o rg a n i s a t i o n a l   c h a n g e s   t o   a l -
low th e o pe rato rs  to  tur n into  ef fe c t ive 
decom missio nin g org anisations.

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
INTRODUCTION

8

1.  

2.  

B AC KG R O U N D

Decommissioning is the final step in the life - c ycle of a nuclear 
power plant, whose lifetime is typically 30–40 years, and up to 
60 years for the newest installations (see A nnex I). Decommis-
s i o n i n g   c o ve r s   p re p a r a t o r y   a c t i v i t i e s   p r i o r   t o   t h e   f i n a l   s h u t -
d o w n   ( s u c h   a s   e l a b o r a t i o n   o f   a   d e c o m m i s s i o n i n g   p l a n ,   p r e -
par ing  the l icens ing docu mentat ion  an d waste  i nf rast r uc ture 
p ro j e c t s )   a n d   a l l   a c t i v i t i e s   a f t e r   t h e   re a c t o r s   a re   s h u t   d o w n , 
like the removal of spent fuel elements, the decontamination, 
d i s m a n t l i n g   a n d / o r   d e m o l i t i o n   o f   t h e   n u c l e a r   i n s t a l l a t i o n s , 
the disposal of remaining radioac tive waste materials and the 
environmental restoration of the contamined site. The decom-
missioning process ends when the installation is released from 
any reg ul ato r y  contro l  and radiologi c al res tr ic t ion .

 T h e   d e c o m m i s s i o n i n g   p r o c e s s   p r o d u c e s   l a r g e   v o l u m e s   o f 
m a t e r  i a l .   T h e i r   d i s p o s a l   a s   w a s t e   h a s   v e r y   s i g n i f i c a n t   e n v i -
r o n m e n t a l   a n d   f i n a n c i a l   c o s t s 1.   T h i s   i s   w h y,   o n   t h e   b a s i s   o f 
the  ‘p ol l uter pays p r in cip l e’ and  a ccord in g  to a gre ed inter na -
tional prac tice, it is recommended that, by the time a nuclear 
i n s t a l l a t i o n   h a s   b e e n   p e r m a n e n t l y   s h u t   d o w n ,   i t s   o p e r a t o r s 
should ensure the availabilit y of adequate financial resources 
for safe decommissioning. These resources should aim to cover 
all aspec ts of decommissioning, from the technical decommis-
s i o n i n g   o f   t h e   i n s t a l l a t i o n   t o   w a s t e   m a n a g e m e n t .   I f,   d u r i n g 
i m p l e m e n t a t i o n ,   t h e   d e c o m m i s s i o n i n g   p r o j e c t   p r o v e s   t o   b e 
more expensive than the approved cost estimate, the operator 
sho ul d  cove r t he additio nal  expe ns e s 2. 

3.  

 I n t he event  o f an ear ly  c l o sure,  countr i e s f ace  f ur th e r  soci al, 
economical and financial consequences. This is essentially due 
to a fall in the expec ted produc tion and sale of elec tricit y and 
the  need to  f und alter native s ource s.

1  According to the Commission, 
the amount needed to 

rehabilitate the site for a 

nuclear plant is around 

10 % to 15 % of the initial 

investment cost for each 

reactor to be decommissioned 

(See COM(2004) 719 final of 

26 October 2004 — Report 

on the use of financial 

resources earmarked for the 

decommissioning of nuclear 

power plants).

2  See paragraphs 3, 4 and 13 of 
Commission Recommendation 

2006/851/Euratom of 24 October 

2006 on the management 

of financial resources for the 

decommissioning of nuclear 

installations, spent fuel and 

radioactive waste (OJ L 330, 

28.11.2006, p. 31). In July 2003, 

an interinstitutional statement 

by the European Parliament, the 

Council and the Commission 

highlighted the need for 

adequate financial resources for 

decommissioning and waste 

management activities (See  

OJ L 176, 15.7.2003, p. 56). 

See also International Atomic 

Energy’s (IAEA) Technical 

Document No 1476 on 

the Financial Aspects of 

Decommissioning  (http://

www-pub.iaea.org/MTCD/

publications/PDF/te_1476_web.

pdf).

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
 
9

3  See COM(2007) 794 final of 
12 December 2007, p. 10 — 

Second report on the use of 

financial resources earmarked for 

the decommissioning of nuclear 

installations, spent fuel and 

radioactive waste.

4  Following the incident at 
the nuclear power plant of 

Fukushima Daiichi in March 

2011, the European Council 

decided that the safety of 

all EU nuclear plants should 

be reviewed following a 

comprehensive and transparent 

risk and safety assessment 

(‘stress tests’). The European 

Council resolved to assess initial 

findings by the end of 2011, 

based on a report from the 

Commission (see Presidency 

Conclusions 24–25 March 2011, 

paragraph 31).

4.  

Th e   d e co m m i s s i o n i n g   o f   n u c l e a r   re a c to r s   w i l l   b e   a n   i n c re a s -
i n g l y   i m p o r t a n t   i s s u e   i n   t h e   ye a r s   a h e a d.  Th e re   i s   a   grow i n g 
number of nuclear plants across Europe that are already being 
deco mmis sioned  or   w il l   b e  in  t he   s h or t /mid   ter m.   At   th e   e nd 
of June 2011, there were 220 nuclear reac tors in the European 
U n i o n .   A s   s h o w n   i n   Fi g u r e   1 ,   7 7   o f   t h e s e   r e a c t o r s   h a d   b e e n 
s h u t   d o w n   a n d   m o s t   o f   t h e m   w e r e   u n d e r   d e c o m m i s s i o n i n g. 
Als o,  arou nd o ne third  of the 14 3  re ac tor s ope rat in g  in  1 4  E U 
M e m b e r   S t a t e s   w i l l   n e e d   t o   b e   s h u t   d o w n   b y   2 0 2 5 3.   Fi n a l l y, 
i t   i s   p o s s i b l e   t h a t   M e m b e r   S t a t e s   a n d   n u c l e a r   o p e r a t o r s   w i l l 
h ave   to   f a ce   t h e   e a r l y   c l o s u re   o f   f u r t h e r   p l a nt s   a s   a   re s u l t   o f 
the  ‘st res s test s’ to b e u nde r tak en  on  nucle ar re ac tor s by  t he 
end o f 2 01 1 4.

F I G U R E 	 1

N U C L E A R 	 P O W E R 	 R E AC TO R S 	 I N 	T H E 	 E U 	 A S 	 AT 	 J U N E 	 2 01 1

EU Total: 220 reactors

Dismantled:
2 reactors

Safe enclosure:
3 reactors

Under decommissioning: 
72 reactors

In operation:
143 reactors

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

Source: International Atomic Energy Agency’s Power Reactor Information System. 

 
10

E U 	 F I N A N C I A L 	 A S S I S TA N C E 	TO 	 S U P P O R T	
N U C L E A R 	 D E CO M M I S S I O N I N G 	 I N 	 B U LG A R I A ,	
L I T H UA N I A 	 A N D 	 S LO VA K I A	 	

T h e   C h e r n o b y l   a c c i d e n t   i n   1 9 8 6   a n d   i t s   c ro s s - b o rd e r   i m p a c t 
highlighted the global impor tance of nuclear safety. This event 
generated broad concern with regard to the operation of non-
u p gra d e a b l e   n u c l e a r   re a c to r s   i n   ce n t r a l   a n d   e a s te r n   Eu ro p e. 
H e n c e ,   w i t h   a   v i e w   t o   i n c r e a s i n g   n u c l e a r   s a f e t y,   t h e   i n t e r -
n a t i o n a l   c o m m u n i t y,   a n d   t h e   E u r o p e a n   U n i o n   i n   p a r t i c u l a r, 
d e c i d e d ,   f r o m   t h e   e a r l y   1 9 9 0 s ,   t o   p r o v i d e   v a r i o u s   f o r m s   o f 
financ ial  assist a nce to several count r i es 5. 

 I n   t h e   f r a m e wo r k   o f   t h e   a c c e s s i o n   n e g o t i a t i o n s   t o   t h e   E u ro -
pean Union, Bulgaria, Lithuania and Slovak ia committed them-
sel ves   to   t he  e ar l y  c l o su re  and  subse que nt   de com mi ssi on in g 
of  eig ht  reac to rs (se e Fig ur e  2) . 

5.  

6.  

5 The main vehicles for EU funding 
were the TACIS programme 

(providing technical assistance 

to the partner States in eastern 

Europe and central Asia) and the 

PHARE programme (supporting 

financial and technical 

cooperation with the candidate 

central and eastern European 

countries). A number of countries 

benefited from this assistance 

(Bulgaria, Czech Republic, 

Hungary, Lithuania, Romania, 

Slovakia, Slovenia, Armenia, 

Kazakhstan, Russia and Ukraine). 

The Court reported on the use of 

these funds in its Special Report 

No 25/98 (OJ C 35, 9.2.1999, p. 1).

F I G U R E 	 2

N U C L E A R 	 P L A N T S 	 S U B J E C T 	TO 	 E A R LY 	 C LO S U R E

Nuclear power 
plant

Reactor unit 
 (and type)

Start of  commercial   
operation

Theoretical  closure 
date 
(as per design)

Actual closure date
 (in line with  
agreement)

End of  
decommissioning 
(current forecast)

Unit 1 
(VVER 440 / 230)

Unit 2 
(VVER 440 / 230)

Unit 3 
(VVER 440 / 230)

Unit 4 
(VVER 440 / 230)

Unit 1 
(RBMK 1500)

Unit 2 
(RBMK 1500)

Unit 1 
(VVER 440 / 230)

Unit 2 
(VVER 440 / 230)

Kozloduy  
(Bulgaria)

Ignalina
(Lithuania)

Bohunice V1
(Slovakia)

1974

1975

1981

1982

1984

1987

1980

1981

2004

2005

2011

2011

2013

2017

2008

2010

2002

2002

2006

2006

2004

2009

2006

2008

2035

2035

2035

2035

2029

2029

2025

2025

Source: European Court of Auditors, on the basis of the International Atomic Energy Agency’s Power Reactor Information 

System and the technical documentation gathered during the audit.

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7.  

8.  

T h e   E U   r e c o g n i s e d   t h a t ,   g i v e n   t h e   s i g n i f i c a n t   p r o p o r t i o n   o f 
p r o d u c t i o n   c a p a c i t y   l o s s ,   t h i s   c o m m i t m e n t   r e p r e s e n t e d   a n 
e xc e p t i o n a l   b u r d e n   fo r   t h e   c o u n t r i e s   c o n c e r n e d .  T h e r e f o r e , 
in  o rder to h el p them meet  th is  comm it ment, t h e E U de c id ed 
to provide a financial contr ibution with the t wofold objec tive  
of :

(a )  s u p p o r t i n g   r e c i p i e n t   c o u n t r i e s’  e f fo r t s   t o   d e c o m m i s s i o n 
t h e i r   c l o s e d   n u c l e a r   r e a c t o r s   ( ‘d e c o m m i s s i o n i n g   m e a s -
u res’) ; and   

6  It is an EU legal requirement 
that the mobilisation of EU 

resources must be preceded 

by an evaluation to ensure 

that the resultant benefits are 

in proportion to the resources 

applied (see Council Regulation 

(EC, Euratom, ECSC)  No 2333/95 

of 18 September 1995 amending 

the Financial Regulation of  

21 December 1977 applicable 

(b)  contr ibuting towards addressing the consequences of the 

to the general budget of the 

ear l y c l osu re  (‘m it igation measure s’) .

 Th e   f u n d i n g   s c h e m e   p u t   fo r wa rd   by   t h e   Co m m i s s i o n   d i d   n o t 
benefit from a comprehensive ex ante evaluation 6. Funding was 
to   b e   ava i l a b l e   a s   a   g e n e ra l   a l l o c a t i o n ,   b a s e d   o n   b e n e f i c i a r y 
countries’ ac tual payment needs and absorption capacit y. The 
p ro g r a m m e s   w e r e   s e t   t o   s u p p o r t   b r o a d l y   d e f i n e d   p r i o r i t i e s : 
d e c o m m i s s i o n i n g,   e nv i ro n m e n t a l   u p g r a d i n g,   m o d e r n i s a t i o n 
a n d   re p l a ce m e n t   o f   co nve n t i o n a l   g e n e r a t i n g   c a p a c i t y,   o t h e r 
consequential measures contributing to moder nisation of en -
ergy   pro du c t io n,   trans m is sion  a nd   dis tr ibut ion   an d  to  se c ur-
in g ene rg y s up p l y and imp rovin g  e ne rg y  ef f ici en c y.  Th e  total 
co s t   a n d   t h e   re l at i ve   i m p o r t a n ce   o f   t h e s e   p r i o r i t i e s,   t h e   E U ‘s 
s h a r e   o f   i t   a n d   t i m e   l i m i t s   fo r   E U   i n t e r v e n t i o n   w e r e   n o t   d e -
fined. Ceilings on funding available were set for each financial 
fram ewo r k 7. 

European Communities  

(OJ L 240, 7.10.1995, p. 1);  

see also Article 27(4) of Council 

Regulation (EC, Euratom)  

No 1605/2002 of 25 June 2002 

on the Financial Regulation 

applicable to the general budget 

of the European Communities 

(OJ L 248, 16.9.2002, p. 1). 

7  In its document ‘A Budget 
For Europe 2020’, Part I, 

COM(2011) 500 final of  

29 June 2011, the Commission 

proposes the continuation of 

the EU financial support for 

decommissioning for the period 

2014–20 (Heading — Smart and 

inclusive growth).

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9.  

10.  

U T I L I S AT I O N 	 A N D 	 M A N AG E M E N T 	 O F 	 E U	
F I N A N C I A L 	 A S S I S TA N C E

 As   shown  in  Figu r e  3 ,   to tal   EU   fun din g  amounts   to  2  8 50   mil -
l i o n   e u r o   f o r   t h e   1 9 9 9 – 2 0 1 3   p e r i o d .   A t   3 1   D e c e m b e r   2 0 1 0 , 
the  Co mmissio n  had com mitted ove r  7 0  % of t he E U finan cial 
contr ib ut ion   (o r  2 066  m il l io n  euro).   Paym ents  to   cont rac tor s 
sto o d  at   1 030   mil lio n  eu ro,  representing  a lmost   h alf   o f   co m-
m i t t e d   a m o u n t s 8.   O u t   o f   t h i s   a m o u n t ,   s o m e   6 0  %   a n d   4 0  % 
re s p e c t i ve l y   we nt   to   d e co m m i s s i o n i n g   a n d   m i t i g at i o n   m e a s -
u re s.   A n   ove r v i e w   o f   t h e   p ro gr a m m e s’  f i n a n c i a l   f l ow s   i s   p re -
sented  in A n nex  II.

I n line with the relevant provisions 9, the Commission delegat-
ed  the   m anag e ment   of  mo st  ( 83 %)   of  th e  E U  fin an cial  assist-
a n c e   f o r   t h e   c o u n t r y   p r o g r a m m e s   t o   t h e   E u r o p e a n   B a n k   f o r 
R econstruc tion and D evelopment (EBRD) which had managed 
n u c l e a r   s a fe t y   p ro j e c t s   a n d   d e co m m i s s i o n i n g   f a c i l i t i e s   s i n ce 
t h e   e a r l y   1 9 9 0 s .   To   t h i s   e n d ,   t o g e t h e r   w i t h   s o m e   E u r o p e a n 
countries, three International Decommissioning Suppor t Funds 
were set up in 2001 10. A Framework Agreement was signed be -
t ween   the   recip ient  cou ntr ies,  t he   E B RD   an d  t h e  f und   don or s 
(see  foo t no te 10 ).   

F I G U R E 	 3

B R E A K D O W N 	 O F 	 E U 	 S U P P O R T 	 BY 	 P R O G R A M M E

Programme

EU contribution
(million euro)

Percentage of the total

Kozloduy

Ignalina

Bohunice

Total

870

1 367

613

2 850

30,5 %

48,0 %

21,5 %

100 %

Source: Legal bases and Commission’s accounting.

8  The Commission earmarks 
appropriations to the specific 

agreements signed with the 

intermediary bodies (or, in some 

cases, with the beneficiaries) 

through the authorisation 

of individual commitments. 

Payments are subsequently 

authorised on this basis to 

intermediary bodies, which 

then allocate these resources to 

specific projects and contracts. 

Ultimately, the resources are 

disbursed by the intermediary 

bodies to the contractors. 

9  The Financial Regulation 
No 1605/2002 (see Articles 53 

to 57) provides that subject 

to certain conditions, the 

Commission may delegate its 

implementation tasks. Moreover, 

the Accession Treaties and the 

relevant Council Regulations 

provide specifically that the 

Commission could do this.

10  The EU is the main contributor 
to the three International 

Decommissioning Support 

Funds (96 % of the total). 

Other European donors have 

contributed 60 million euro. 

These are: Belgium, Denmark, 

Germany, Ireland, Greece, 

Spain, France, Luxembourg, 

the Netherlands, Austria, 

Poland, Finland, Sweden, the 

United Kingdom, Norway and 

Switzerland. Since 2004, the EU is 

the only contributor.

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11.   U n d e r   t h e   f r a m e w o r k   o f   t h e   C o u n c i l   R e g u l a t i o n s ,   t h e   E B R D 
i s   re q u i re d   to   m a n a g e   t h e   p u b l i c   f u n d s   a l l o c ate d   to   t h e   p ro -
grammes for decommissioning nuclear power plants and moni-
toring the financial management of these programmes so as to 
optimise the use of public money. In addition, the EBRD should 
car r y out  t he bu dget  tasks  entrus ted  to i t by  t he  Commi ss i on 
in  line  wit h th e requ irem ent s of  th e  Fi na nci al R eg ulati on 11.

 I n   a d d i t i o n ,   f o r   L i t h u a n i a ,   t h e   C o m m i s s i o n   d e l e g a t e d   p a r t 
o f   t h e   a s s i s t a n c e   t o   a   p a r a l l e l   s t r u c t u r e,   t h e   C e n t r a l   Pr o j e c t 
M a n a g e m e n t   A g e n c y 1 2  ( C P M A ) .   T h i s   f o l l o w e d   c o n s i d e r a t i o n 
that the countr y had an appropr iate national implementation 
struc ture. The agenc y ’s management responsibilities are simi-
la r  to  tho se o f th e EBR D.

The  t hree  recip ient   cou ntr ies  propose   proj ec t s  for   as si st an ce 
in  co ns ul tat io n w it h th e EBR D or  t h e C PMA. I n  t he  case  of  th e 
three suppor t funds, the assemblies of donors (where the Com-
mission is represented) approve the projects. In the case of the 
CPMA channel, the Commission direc tly approves the projec ts. 
I n 2007, a M ember States’ M anagement Committee was put in 
p l a ce   to   a s s i s t   t h e   Co m m i s s i o n   i n   t h e   i m p l e m e nt at i o n   o f   t h e 
a s s i s t a n ce   p ro g r a m m e s.  Th e   co n t r i b u t i o n   m ay   a m o u n t   u p   to 
10 0 %  of   p rojec t   cost s.  There  is   however,  an  ex pec t at ion   t hat 
ever y effor t should be made to continue the co-financing prac-
tice  est abl ishe d un der t he p re - acces s ion  as si st an ce 13.

Ex ter n al  co nt rac tors u nder  the res pons ibi li t y  of  th e  gra nt  re -
c i p i e nt s   u s u a l l y   exe c u te   p ro j e c t s 1 4.  Th e   re l e va nt   n at i o n a l   a u -
thorities, the EBRD or the CPMA monitor the project execution. 
On the basis of their repor ts, the assemblies of donors and the 
Commission, respectively, super vise the implementation of the 
pro jec ts.   

12.  

13.  

14.  

15.  

11  See Council Regulation 
No 647/2010 of 13 July 2010 

(Bulgaria), Council Regulation 

No 1990/2006 of 21 December 

2006 (Lithuania) and Council 

Regulation No 549/2007 of  

14 May 2007 (Slovakia). The 

EBRD manages EU funds under 

the ‘joint management’ mode 

of budget implementation, 

which involves the delegation 

of management functions to 

international organisations. 

Delegation is subject to 

application of standards for 

accounting, audit, internal 

control and procurement 

procedures that offer guarantees 

equivalent to internationally 

accepted standards (Article 53d 

of Regulation No 1605/2002).  

12  The CPMA manages EU funds 
under the ‘indirect centralised 

management’ mode of budget 

implementation, which involves 

the delegation of selected 

tasks by the Commission to a 

national agency. Delegation 

is subject to application of 

standards for accounting, 

audit, internal control and 

procurement procedures which 

offer guarantees equivalent 

to internationally accepted 

standards (Articles 53a, 54 to  

57 of Regulation No 1605/2002). 

The CPMA manages 332 million 

euro, or 16 % of the total support 

committed to three countries 

until the end of 2010.

T h e   C o m m i s s i o n   i s   u l t i m a t e l y   r e s p o n s i b l e   f o r   t h e   u s e   o f   E U 
f u n d s ,   w h i c h   a r e   m a n a g e d   b y   i t s   D i r e c t o r a t e - G e n e r a l   f o r 
En erg y. 

13  The Council Regulations 
adopted in 2006, 2007 and 2010 

envisage this possibility (see 

footnote 11).

14 The plant operators are the main grant recipients of the decommissioning projects. Main beneficiaries of the mitigation projects are 

public bodies or private companies.

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Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
AUDIT SCOPE AND APPROACH

14

16.  

T h e   C o u r t ’s   a u d i t   c o v e r e d   t h e   i m p l e m e n t a t i o n   o f   t h e   t h r e e 
d e c o m m i s s i o n i n g   p r o g r a m m e s   f r o m   1 9 9 9   u n t i l   t h e   e n d   o f 
2 0 1 0 .  T h e   m a i n   o b j e c t i v e   w a s   t o   a s s e s s   t h e   e f fe c t i v e n e s s   o f 
the EU-funded nuclear decommissioning programmes against 
t h e i r   t wo fo l d   o b j e c t i ve s   ( s e e   p a ra gra p h   7 ) .  Th e   a u d i t   s o u g ht 
to  answer t hree  ques t ion s:    

(a )  H a v e   p r o g r a m m e   a c t i o n s   fo r   d e c o m m i s s i o n i n g   b e e n   d e -
signed  in accord an ce wit h identi fi ed  n eed s  a nd h ave  th e y 
b een  car r ie d ou t as p l anned so f ar ?      

(b)  H ave p ro gra mm e ac t ions to m iti gate  th e  con se que n ce s of 
the ear ly closure of the reac tors been designed in accord -
ance with identified needs and have they been carried out 
as  pl an ned so  far?

15  Decommissioning of the 
Greifswald plant (Germany) 

is regarded as best practice 

by a number of international 

organisations (the International 

Atomic Energy Agency, the 

Nuclear Energy Agency and the 

Commission). 

16  Procurement procedures were 
subject to a limited review on 

the basis of the implementing 

bodies’ own procedures. 

Contracts financed via the 

International Decommissioning 

Support Funds managed by 

(c)  H a v e   t h e   a c c o u n t a b i l i t y   a n d   g o v e r n a n c e   a r r a n g e m e n t s 

the EBRD are put out to tender 

by the grant recipients. Firms 

are selected according to EBRD 

procurement rules. Acting 

as a Fund administrator, the 

EBRD monitors the procedure. 

CPMA conducts procurements 

according to national public 

procurement rules. 

b een  adequ ate to en su re an effe c ti ve  use  of  E U f un ds?     

17.  

 The  aud it  wo r k  inc l u ded:   

 ο

 ο

 ο

 ο

 ο

 ο

a review of preparator y and legislative documentation re -
lated to the programmes and an analysis of relevant tech-
nica l  and financial  info r mat ion;

i n t e r v i e w s   a t   t h e   Co m m i s s i o n ,   E B R D   a n d   C PMA ,   t h e   re l e -
vant   min is tr ies  o f  t he  recipient  countr i es   an d   t he   n uc le ar 
p ower p l ant s;

t h e   r e v i e w   o f   i n t e r n a t i o n a l   s t a n d a r d s   a n d   b e s t   p r a c t i c e 
c a s e s ,   i n   p a r t i c u l a r   t h e   d e c o m m i s s i o n i n g   p r o c e s s   o f   t h e 
Gre ifswal d Nuc l ear Power Plant 15; 

consultation with exper ts in the field of decommissioning 
p ro jec t s;   

t he  re view   o f  the  sco pe  and  tim in g   of   t he   1 4 9   proj e c ts   i n 
the current por tfolios against identified needs and overall 
p ro gra mme o bj ec tives ; an d

t h e   a s s e s s m e n t   o f   t h e   r e s u l t s   o f   a   j u d g m e n t a l   s a m p l e   o f  
22 projects (16 for ‘decommissioning’ and 6 for ‘mitigation’) 
w ith  visit s in all  three recipie nt  countr i es 16.

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OBSERVATIONS

15

P R O G R E S S 	 AC H I E V E D 	 I N 	T H E	
D E CO M M I S S I O N I N G 	 O F 	T H E 	 R E AC TO R S

18.  

 A s   i n d i c a t e d   i n   p a r a g r a p h   6 ,   t h e   a i m   o f   i m p r o v i n g   n u c l e a r 
s a f e t y   w a s   t o   b e   a c h i e v e d   t h r o u g h   t h e   e a r l y   c l o s u r e   o f   t h e 
eight non-upgradeable reac tors and their subsequent decom-
missioning. Bulgaria, Lithuania and Slovak ia have closed these 
r e a c t o r s   i n   l i n e   w i t h   t h e i r   c o m m i t m e n t .   C o n c e r n i n g   d e c o m -
missioning, impor tant milestones have been reached, but the 
main p ro cess  is s t il l ah ead  of us.    

T H E 	 I D E N T I F I C AT I O N 	 O F 	 D E CO M M I S S I O N I N G 	 AC T I V I T I E S	
I S 	 S T I L L 	 I N 	 P R O G R E S S	

19.  

 The de tail ed plan ning  an d manag e me nt  of al l ac ti vi ti es  to be 
u n d e r t a k e n   i n   t h e   d e c o m m i s s i o n i n g   p r o c e s s   i s   a   k e y   f a c t o r 
fo r   i t s   s u cce s s.   I n t e r n a t i o n a l   s t a n d a rd s   p rov i d e   t h a t   p r i o r   to 
t h e   i m p l e m e n t a t i o n   p h a s e   o f   d e c o m m i s s i o n i n g   a c t i v i t i e s ,   a 
decommissioning plan must establish how the projec t will be 
m a n a g e d .   T h e   p l a n   s h o u l d   b e   b a s e d   o n   a   d e c o m m i s s i o n i n g 
strateg y and identify the su bseq ue nt ac ti on s to be  und er ta k-
en, from reac tors shutdown until the final disposal or storage 
of  was te 17.

20.   An   a s s e s s m e nt   o f   t h e   d e co m m i s s i o n i n g   p l a n n i n g   d o c u m e nt s 
for  t he  t hree  p l ant s  is   su mmar is ed   in   Fi gu re  4.  S everal  weak-
ne ss es  were  no ted:

(a )  A   c l a s s i f i c at i o n   a n d   q u a nt i f i c at i o n   o f   wa s te   to   b e   t re ate d 
mu st  b e prep ared to s er ve as  basi s  for  t he  ade quate  ide n -
tification of decommissioning ac tivities. I n the case of the 
Bohunice V1 plant, a waste inventor y was completed in July 
2010. In the case of Ignalina and Kozloduy plants, however, 
r a d i o a c t i v e   w a s t e   i n v e n t o r i e s   w e r e   n o t   c o m p l e t e   a s   t h e 
concrete quantities of each t ype of radioac tive material to 
b e   p ro c e s s e d   we re   n o t   ye t   k n ow n   ( t h e   r a d i o l o g i c a l   c h a r -
ac ter is at io n  o f  the  p l ants  was   n ot   f in i sh ed) .  Th e  pla nn in g 
d o c u m e n t s   b e i n g   u s e d   b y   t h e   p l a n t   o p e r a t o r s   w e r e   s t i l l 
b ase d o n provisional  data on  rad i oac ti ve  waste.

17  This includes the site 
management plan, the roles 

and responsibilities of the 

organisations involved, safety 

and radiation protection 

measures, quality assurance, 

a waste management plan, 

documentation and record- 

keeping requirements, a 

safety assessment and an 

environmental assessment 

and the criteria therefore, 

surveillance measures during the 

implementation phase, physical 

protection measures as required, 

and any other requirements 

established by the regulatory 

body (see International 

Atomic Energy Agency’s Safety 

Requirement No WS-R-5, 

Decommissioning of facilities 

using radioactive material, p. 10, 

Vienna, 2006, and the technical 

document No 1394, ‘Planning, 

managing and organising the 

decommissioning of nuclear 

facilities: lessons learned’, Vienna, 

May 2004).

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(b)  D e co m m i s s i o n i n g   p l a n s   a re   ex p e c te d   to   co nt a i n   ra d i o a c -
t ive  waste  management  plan s   id ent if yi n g  t h e  s pe ci fi c  ac -
tivities, facilities and technologies required for the disman-
t l i n g,   c o n d i t i o n i n g,   t r a n s p o r t ,   s t o r a g e   a n d   f i n a l   d i s p o s a l 
o f   a l l   w a s t e   t y p e s ,   e s p e c i a l l y   t h e   m o s t   c r i t i c a l   m a t e r i a l s 
( re a c to r   ve s s e l s,   p r i m a r y   co o l i n g   c i rc u i t s   a n d   o t h e r   l a rg e 
v o l u m e - a c t i v a t e d   c o m p o n e n t s   a n d   h i g h   l e v e l   r a d i a c t i v e 
waste). Even in the only case where the inventor y has been 
c o m p l e t e d   ( B o h u n i c e  V 1 ) ,   i t   h a s   n o t   ye t   b e e n   i n t e g r a t e d 
i n t o   a   d e t a i l e d   d e c o m m i s s i o n i n g   p l a n   d e f i n i n g   i n   d e t a i l 
how  ident ifie d  was te  w il l  be  tre ated   an d  d i spos ed   d ur in g 
t h e   w h o l e   d u rat i o n   o f   t h e   d e co m m i s s i o n i n g   p ro ce s s.  Th e 
cu r rent  p lan foc us es onl y on  the  f ir st  phas e  o f de comm is-
s i o n i n g,   w h i c h   a l m o s t   exc l u s i ve l y   cove r s   n o n - ra d i o a c t i ve 
mater ial s.

(c)  D e c o m m i s s i o n i n g   p l a n s   s h o u l d   e s t i m a t e   t h e   f u l l   c o s t   o f 
t he  de co mmiss io nin g  p roces s  as   a  who le  an d  be   upd ated 
as frequently as required to ensure the validit y of the esti -
mat ions. However, the es timates  co nt ain ed  in  t h e de com -
missioning plans available at the end of 2010 are not com-
plete, since the accurate information concerning quantities 
of each t ype of radioac tive waste to be treated and/or the 
fac il ities   and  tec hn olo gies  requi re d  for   th ei r   treatm ent   is 
unavailable. Moreover, these plans do not cover the plants’ 
de com missio ning  pro cess es  in th e i r  e nti ret y.   

(d )   In order to monitor adequately the decommissioning proc -
ess, there should be a link between the individual projec ts, 
t he  ac t ivit ies  fores een  in   the   decom mi s si oni n g  pl an s  a nd 
their estimated cost. None of the three programmes meets 
t his s ta nd ard.   

F I G U R E 	 4

A S S E S S M E N T 	 O F 	 D E CO M M I S S I O N I N G 	 P L A N N I N G

Audit question

Has a complete waste inventory been 
prepared?

Have waste management plans been 
defined?

Have decommissioning costs been  
adequately estimated?

Were there satisfactory arrangements 
for monitoring the decommissioning 
plans implementation?

COURT'S ASSESSMENT

KOZLODUY  
PROGRAMME

IGNALINA   
PROGRAMME

BOHUNICE V1  
PROGRAMME

No

Partly

Partly

No

No

Partly

Partly

No

Yes

Partly

Partly

No

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M A J O R 	 I N F R A S T R U C T U R E 	 P R O J E C T S 	 FAC E 	 D E L AYS 	 A N D	
CO S T - O V E R R U N S

21.   As   a t   3 1   D e ce m b e r   2 0 1 0 ,   t h e   p ro g r a m m e s   h a d   l a u n c h e d   1 0 1 
p ro j e c t s   w h i c h   co nt r i b u te d   towa rd s   t h e   d e co m m i s s i o n i n g   o f 
t h e   e i g h t   r e a c t o r s .   T h e   t o t a l   v a l u e   o f   t h e s e   p r o j e c t s ,   w h i c h 
we re   a l m o s t   e xc l u s i ve l y   f u n d e d   by   t h e   E U,   w a s   1  1 2 5   m i l l i o n 
euro.   Figu r e  5   provide s  an  over view  of  t he  d ecomm is s ion in g 
pro jec ts financed by th e audited program me s.     

22.  

 An   a n a l ys i s   o f   t h e   i n f ra s t r u c t u re   p ro j e c t s   v i s i te d   o n   s i te   ( s e e 
A n n e x   I I I )   s h ows   d e l ays   a n d   co s t   ove r r u n s.   I n   p a r t i c u l a r,   k e y 
p r o j e c t s   w i t h i n   t h e   c r i t i c a l   p a t h   o f   t h e   d e c o m m i s s i o n i n g 
p ro ce s s   a re   d e l aye d,   fo r   ex a m p l e   f a c i l i t i e s   fo r   s p e nt   f u e l   a n d 
ra d i o a c t i ve   w a s te   m a n a g e m e n t   ( i . e   s p e n t   f u e l   s to r a g e   f a c i l i-
ties and facilities for radioac tive waste treatment, storage and 
final  disp o sal ). 

F I G U R E 	 5

O V E R V I E W 	 O F 	 D E CO M M I S S I O N I N G 	 P R O J E C T S 	 BY 	 P R O G R A M M E	 	
A N D 	 F I N A N C I A L 	 C H A N N E L

Programme

Financial channel

Number of 
projects

Total project value
(million euro)

Total EU support
(million euro)

Kozloduy

Ignalina

Bohunice V1

KIDSF

IIDSF
CPMA

BIDSF

30

17
21

33

334,1

421,9
146,9

222,2

318,4

390,7
135,3

203,7

Total

101

1 125,1

1 048,1

Source: European Court of Auditors, on the basis of the information provided by the EBRD and the CPMA.

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
	
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23.  

24.  

25.  

T H E 	 F U N D I N G 	 S H O R T FA L L 	 I S 	 S I G N I F I C A N T

 I n M arch  2011  the rec ip ient M em ber  States  upd ated  th e ir  de -
c o m m i s s i o n i n g   c o s t   e s t i m a t e s ,   t o   r e a c h   5 , 3   b i l l i o n   e u r o 1 8.   A 
comparison with the decommissioning funding currently avail-
a b l e   at   n at i o n a l   a n d   p ro gra m m e   l e ve l   s u g g e s t s   a   s h o r t f a l l   o f 
arou nd  2,5 b illio n eu ro (s ee Fi gu re  6) . 

18  Contributions to the meeting 
of the Nuclear Decommissioning 

Assistance Programme 

Committee of 16 March 2011.

19  COM(2004) 624 final of 
29  September 2004, p. 3.

20  Footnote 9.

21  Commission 
Recommendation 2006/851/

Euratom.

Slovak ia has committed itself to topping up the funding need -
e d   fo r   d e co m m i s s i o n i n g 1 9  a n d   h a s   c re ate d   a   s p e c i f i c   f u n d i n g 
m e c h a n i s m   ( a   t a x   o n   e l e c t r i c i t y   t r a n s m i s s i o n )   t o   c o n t r i b u t e 
towards reducing the funding shor tfall. Lithuania and Bulgaria 
have not put in place any equivalent mechanism. The absence 
of sufficient funding arrangements puts the completion of the 
deco mmis sioning  proces s es at r is k .

P R O G R E S S 	 AC H I E V E D 	 I N 	 M I T I G AT I N G 	T H E	
E F F E C T S 	 O F 	T H E 	 P L A N T S’	 C LO S U R E	 	 	

I N A D E Q UAT E 	 M I T I G AT I O N 	 N E E D S 	 A S S E S S M E N T

 I n acco rdance  with th e p r inciples  of s ound  f in an cial  man ag e -
ment, it is a good prac tice for any spending programme to set 
i t s   o b j e c t i ve s   o n   t h e   b a s i s   o f   a   n e e d s   a s s e s s m e n t 2 0.  T h i s   i m -
plies   an  eval uat ion,  fol l ow ing   inter nat ion al   s tan d ards,  of   t he 
co n s e q u e n ce s   o f   e a r l y   c l o s u re   ( e. g.   l o s s   o f   e l e c t r i c i t y   p owe r, 
s e c u r i t y   o f   s u p p l y ) .   T h e   d e s i g n   o f   p o t e n t i a l   m e a s u r e s   t o   b e 
under taken should consider their cost in relation to their miti-
g a t i o n   e f fe c t 2 1.  Th e   e x te n t   o f   m i t i g a t i o n   a c h i e ve d   by   f u n d e d 
projec ts must be assessed in view of determining whether the 
mitig at io n ob jec t ives may b e con si de re d f ulf ill ed.

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B O X 	 1

D E L AYS 	 A N D 	 CO S T 	 O V E R R U N S

In Bulgaria, an experimental plasma melting technology was selected in Kozloduy without 
proper demonstration of its effectiveness and without due consideration of the design and 
construction costs (some 30 million euro compared to one fifth for traditional technologies).

In Lithuania, at the time of the audit visit, the major infrastructure projects which are a precon-
dition for the decommissioning of the Ignalina Nuclear Power Plant were significantly delayed 
comparing to initial contracts completion dates. This concerns notably: the interim spent fuel 
facility — more than 32 months; the solid waste retrieval facility — 44 months; the solid waste 
treatment and storage facility for the management of short- and long-lived low and intermedi-
ate level radioactive waste — 34 months. The total project cost of the interim spent fuel facility 
increased by 22 million euro (15,6 %).

In Slovakia, the interim radioactive waste storage at the Bohunice site, initially expected to be 
commissioned in 2010, was still in procurement process during the audit. As a result, the avail-
ability of buffer storage areas has been identified as a potential bottleneck. The facility for the 
free release of decommissioning materials was delayed by more than one year. Until the facility 
is operational, no material can be released from Bohunice V1 NPP.

F I G U R E 	 6

D E CO M M I S S I O N I N G 	 F U N D I N G 	 S H O R T FA L L

Estimates in the 
decommissioning plans
(million euro)

Latest cost estimate
(million euro)

Available funding 
(all sources)
(million euro)

Funding shortfall
(million euro)

Kozloduy NPP
Units 1 to 4

Ignalina NPP
Units 1 and 2

Bohunice V1
Units 1 and 2

1 118

2 019

950

1 243

2 930

1 146

664

1 450

720

579

1 480

426

TOTAL

4 087

5 319

2 834

2 485

Source: Decommissioning plans and information provided during the Nuclear Decommissioning Assistance Programme 

Committee meeting of March 2011.

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Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
	
	
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26.  

 Figure 7 summar ises the result of the Cour t ’s review of needs 
a s s e s s m e n t s   u n d e r l y i n g   t h e   s t r a t e g i c   p l a n s   d e f i n e d   f o r   t h e 
audited programmes. A needs assessment at programme level 
leading to a concrete mitigation strategy was initially car r ied 
o u t   f o r   t h e   K o z l o d u y   p r o g r a m m e   o n l y.   H o w e v e r,   t h i s   n e e d s 
a s s e s s m e n t   i s   o u t d a t e d   a n d   n o   l o n g e r   r e l e v a n t .   A s   a   c o n s e -
que nce,   any  p roj ec t  f it ting  with   th e   nat ion al   e n erg y   st rate g y 
is by definition considered to be a consequence of the closure 
of  the  p lants. 

27.   An estimate on potential impac t of planned projec ts has been 
c a r r i e d   by   t h e   E B R D   i n   t h e   c a s e   o f   K oz l o d u y   o n l y.   As   re g a rd s 
t h e   a c t u a l   a c h i e ve m e n t s   o f   t h e   m i t i g a t i o n   a c t i o n s   a n d   t h e i r 
c o n t r i b u t i o n   t o   t h e   p r o g r a m m e   o b j e c t i v e s ,   n e i t h e r   t h e   i m -
p l e m e n t i n g   b o d i e s   ( E B R D,   C P M A )   n o r   t h e   C o m m i s s i o n   h a v e 
as s esse d t he m. 

F I G U R E 	 7

A S S E S S M E N T 	 O F 	 M I T I G AT I O N 	 P L A N N I N G

Audit question

Has a need assessment 
at programme level 
been carried out?

Has the mitigation 
achieved by the pro-
grammes been  
evaluated?

COURT'S ASSESSMENT

KOZLODUY  
PROGRAMME

IGNALINA  
PROGRAMME

BOHUNICE  
PROGRAMME

Yes

Partly

No

No

No

No

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B O X 	 2

W E A K 	 R E L AT I O N S H I P 	 B E T W E E N 	 M I T I G AT I O N 	 AC T I V I T I E S 	 A N D 	 R E AC TO R S’	
E A R LY 	 C LO S U R E	 	

In Bulgaria, the programme funded energy efficiency improvements in public buildings (schools, 
hospitals, ministry buildings, theatres). The link with the closure of Kozloduy units 1 to 4 is that the 
energy upgrading will compensate for a small part of the production loss, provided that consump-
tion patterns are maintained.

In Lithuania, the programme provided a contribution to the Housing and Urban Development Agen-
cy’s mechansim for refurbishment of multi-family buildings, created to upgrade the energy efficiency 
of 24 000 residential buildings. The Ignalina programme supported one third of some 570 individual 
projects actually launched under this scheme. The link with the closure of Ignalina Nuclear Power 
Plant is that energy upgradings will reduce consumption and therefore compensate part of the 
production loss. In September 2009, the mechanism was terminated and replaced by a financial 
engineering instrument funded by the Structural Funds. 

In Slovakia, the modernisation of the 220kV transmission network was funded by the programme 
under the consideration that Bohunice V1 was its main power supplier. However, the grid was already 
obsolete by the time the closure had been decided, and it would have required modernisation even 
if the plant had been kept operational. The upgrading mainly benefited the other contributors to 
the transmission network (for instance, other nuclear power plants).

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28.  

29.  

B R O A D 	VA R I E T Y 	 O F 	 M I T I G AT I O N 	 AC T I V I T I E S 	 F I N A N C E D

The programmes suppor ted a number of measures to mitigate 
the effec ts of the loss of elec tricit y produc tion subsequent to 
t h e   e a r l y   c l o s u re   o f   n u c l e a r   p l a n t s.   As   o f   3 1   D e ce m b e r   2 0 1 0 , 
the programmes had launched 48 projec ts contributing to the 
m i t i g a t i o n   o f   t h e   e a r l y   c l o s u re   o f   t h e   t h re e   p l a n t s.  Th e   t o t a l 
v a l u e   o f   t h e s e   p ro j e c t s   w a s   1 , 3 4   b i l l i o n   e u ro.  Th e   E U   f u n d e d 
o v e r   h a l f   o f   t h i s   a m o u n t .   F i g u r e   8   p r o v i d e s   a n   o v e r v i e w   o f 
t h e   m i t i g a t i o n   p r o j e c t s   f i n a n c e d   b y   t h e   t h r e e   a u d i t e d   p r o -
gram mes.

Th e   s i te   v i s i t s   co n f i r m e d   t h at   t h e   i n d i v i d u a l   p ro j e c t s   we re   i n 
line with the broadly defined priorities of the programmes and 
contr ib uted to  mitigate t he effe c ts  of t he  e ar ly  c los ure of  th e 
eight nuclear reac tors (see A nnex IV). However, the degree of 
mitigation achieved is not k nown. Moreover, a direc t link with 
the   e ar l y  cl osu re  of  reac to rs   could  not   a lways   be   e st ablis h ed 
a n d   t h e   e x i s t e n c e   o f   a   p r i o r i t i s a t i o n   o f   m i t i g a t i o n   a c t i v i t i e s 
co u l d   n o t   b e   d e m o n s t ra te d  ( s e e   B ox   2 ) .   I n   a   s i t u a t i o n   w h e re 
t h e   re s o u rce s   a re   a l re a d y   i n s u f f i c i e nt ,   t h i s   r i s k s   t h e   a c h i e ve -
ment  of   t he  pro gramm es’  o bjec t ive s,   an d  de lays   t h e  compl e -
tio n o f t he deco mmis s ion ing proces s. 

F I G U R E 	 8

O V E R V I E W 	 O F 	 M I T I G AT I O N 	 P R O J E C T S 	 BY 	 P R O G R A M M E 	 A N D	 	
F I N A N C I A L 	 C H A N N E L

Programme

Financial channel

Number of projects

Total project value
(million euro)

Total EU support
(million euro)

Kozloduy

Ignalina

Bohunice V1

KIDSF

IIDSF
CPMA

BIDSF

Total

28

3
10

7

48

454,8

475,5
36,1

376,8

241,8

260,4
36,1

190,4

1 343,2

728,8

Source: European Court of Auditors, on the basis of the information provided by the EBRD and the CPMA. 

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P R O G R A M M E 	 ACCO U N TA B I L I T Y 	 A N D	
M A N AG E M E N T 	 O R G A N I S AT I O N	 	

W E A K 	 ACCO U N TA B I L I T Y 	 F O R 	 P R O G R A M M E S’	
P E R F O R M A N C E

30.  

31.  

32.  

33.  

 Effec tive management requires the definition of clear lines of 
re s p o n s i b i l i t y   fo r   t h e   u s e   o f   p ro g r a m m e s’  re s o u rc e s   a n d   t h e 
a c h i e ve m e n t   o f   t h e i r   o b j e c t i ve s.  W h a t e ve r   t h e   m a n a g e m e n t 
m e t h o d,   t h e   Co m m i s s i o n   s h o u l d   b e   i n   a   p o s i t i o n   t o   e xe rc i s e 
its  u l t im ate resp o ns ib ilit y for  th e impl em entat ion  of t h e pro -
gram mes  a nd be hel d accou ntable  for  t he  use  of  t he  fun ds 22.

The programmes’ management includes several levels. I n par -
ticular, responsibilities for setting up the programmes involve 
the Commission, the EBRD, the CPMA, the Assembly of Contrib-
u t o r s   t o   t h e   I n t e r n a t i o n a l   D e c o m m i s s i o n i n g   S u p p o r t   Fu n d s, 
N u c l e a r   p l a n t s   o p e r a to r s   a n d   t h e   M e m b e r   S t a te s   c o n ce r n e d. 
Th e   Co m m i s s i o n   d i d   n o t   e n s u re   t h a t   t h e   b ro a d   p r i o r i t i e s   s e t 
out in the Accession Treaties and subsequent Council R egula-
tions (see paragraph 8) were translated into a coherent set of 
det ail ed ta rg e ts and  in dicators. 

 None of the abovementioned bodies has established a system 
to  m on ito r  and  as sess   the  p rogres s   toward s  th e   ach ie vem ent 
o f   t h e   ove r a l l   o b j e c t i ve s   o f   t h e   p ro gr a m m e s,   t h e   d e co m m i s -
s i o n i n g   o f   t h e   e i g ht   re a c to r s   a n d   t h e   m i t i g at i o n   o f   t h e i r   c l o -
s u re.   M o n i to r i n g   a n d   re p o r t i n g   o n   p ro gra m m e   a c h i e ve m e nt s 
at  al l  l evel s were therefo re diffic ult.

I n  J ul y 2011, t he Commis sion repor te d on  th e  d ecom m issi on-
i n g   p r o g r a m m e   f o r   L i t h u a n i a ,   S l o v a k i a   a n d   B u l g a r i a ,   n a m e -
l y   c o n c e r n i n g   i t s   a d m i n i s t r a t i o n ,   t h e   e x p e n d i t u r e   i n c u r r e d 
a n d   t h e   p ro g re s s   o f   k e y   p ro j e c t s 2 3.   S o m e   i n fo r m a t i o n   o n   t h e 
pro gre ss o f th e three decommiss i oni n g progra mme s  was a lso 
p r o v i d e d   i n   s u p p o r t   o f   t h e   y e a r l y   C o m m i s s i o n   D e c i s i o n s   o n 
f i n a n c i n g   a n d   o n   t h e     t w o   g e n e r a l   r e p o r t s   p r o d u c e d   b y   t h e 
Commission in 2004 and 2007 on the use of financial resources 
e a r m a r k e d   fo r   t h e   d e co m m i s s i o n i n g   o f   n u c l e a r   p owe r   p l a nt s 
in  al l  27 M e mber  St ates 24.

22  The Treaty provides that 
the Commission implement 

the EU Budget on its own 

responsibility (Articles 17(1) TEU 

and 317 TFEU). A requirement 

for quantification of the 

objectives and monitoring of 

the progress of their realisation 

is set in EU legislation since 

1990 (See Council Regulation 

(Euratom, ECSC, EEC) No 610/90 

of 13 March 1990 amending 

the Financial Regulation of 21 

December 1977 applicable 

to the general budget of the 

European Communities). The 

concept has been further 

developed in 2002 with the 

introduction of the SMART 

standard (see Article 27(3) of 

Regulation No 1605/2002). 

23  Report from the Commission 
to the European Parliament 

and the Council on the use of 

financial resources during  

2004–09 provided to Lithuania, 

Slovakia and Bulgaria to support 

the decommissioning of early 

shut-down nuclear power-plants 

under the Acts of Accession 

(COM(2011) 432).

24  COM(2004) 719 and 
COM(2007) 794. A third report is 

currently under preparation. 

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34.  

35.  

T h e   2 0 1 1   r e p o r t   c o n s t i t u t e s   t h e r   f i r s t   c o n s o l i d a t e d   a s s e s s -
ment of the use of financial resources earmarked for Bulgaria, 
L i t h u a n i a   a n d   S l o v a k i a   o r   t h e   p r o g r e s s   o f   t h e   p r o g r a m m e s . 
H o w e v e r,   i t   d o e s   n o t   p r o v i d e   a   c l e a r   i n d i c a t i o n   a s   t o   t h e 
a c h i e ve m e nt   o f   ove ra l l   d e co m m i s s i o n i n g   a n d   m i t i g at i o n   o b -
jec t ives.  B efo re  the  p u b l ication   of  t hi s  re por t,   t he   onl y  avail-
a b l e   s o u r c e   i n   t h i s   r e s p e c t   w a s   a   m i d - t e r m   e v a l u a t i o n   p u b -
lis hed in 200 7 25,  w hich excl u ded th e Koz lodu y Programme  on 
the  gro unds t hat it stemmed from  a d if ferent  leg al  basi s.   

Th e l ack  o f suf ficient in for matio n co mbi n e d wit h t he  num be r 
o f   m a n a g e m e nt   l e ve l s   l e d   to   d i f f u s e d   re s p o n s i b i l i t i e s.   I t   wa s 
n o t   c l e a r   w h o   h a d   o v e r a l l   r e s p o n s i b i l i t y   f o r   i m p l e m e n t i n g 
t h e   p ro gr a m m e,   i n   p a r t i c u l a r   w h e t h e r   E U   f u n d s   we re   h av i n g 
the  des ire d effec t. The Co mmiss ion’s supe r v is ion  h as  focuse d 
o n   t h e   b u d g e t a r y   e xe c u t i o n   o f   t h e   f i n a n c i a l   a p p r o p r i a t i o n s 
an d pro jec t imp l ementat io n , rath er  t h an  on  th e  ex te nt of  t h e 
p r o g r e s s   a c h i e v e d   t o w a r d s   t h e   p r o g r a m m e   o b j e c t i v e s   a s   a 
who l e.

36.  

 I ns uf ficient  meas ur ing  o f  p rogre ss   toward s  t he   re ali sat ion   of 
the   pro gramme s’  go al s  and  in ad eq uate   mon i tor in g   of  th e  ef-
fe c t i ve   u s e   o f   re s o u rce s   m e a n   t h at   n o   o n e   i s   a cco u nt a b l e   fo r 
overal l  p rogramme’s  p er fo r man ce.   

25  Mid-term evaluation of the 
decommissioning assistance 

to Lithuania and Slovakia 

provided under the protocols 

to the Treaty of Accession, Final 

Report, September 2007. Its 

overall conclusion is that the EU 

decommissioning assistance 

programme in the countries 

concerned is ‘a mixed bag’. A key 

element stands out, that the EU 

decommissioning assistance 

is not based on a coherent 

strategy.

26  See IAEA, Organisation 
and management for 

decommissioning of large 

nuclear facilities, Technical 

reports series No 399, 

Vienna 2000; Planning, 

managing and organising the 

decommissioning of nuclear 

facilities: lessons learned, IAEA-

TECDOC-1394, Vienna, May 2004; 

Decommissioning of facilities 

using radioactive material,  

Safety requirements No WS-R-5, 

Vienna, 2006. 

I N CO M P L E T E 	 O R G A N I S AT I O N A L 	 C H A N G E S

37.  

Th e   s u c c e s s   o f   t h e   d e c o m m i s s i o n i n g   p ro c e s s   i n   m e e t i n g   t h e 
i n t e n d e d   r e s u l t s ,   o n   t i m e   a n d   a t   a   r e a s o n a b l e   c o s t   d e p e n d s 
o n   t h e   c a p a c i t y   t o   a d a p t   t o   e v o l v i n g   n e e d s .   T h i s   m e a n s   i n 
par ticular achieving a smooth transition of the nuclear power 
plants from an operating to a decommissioning organisation 26.   
To t his e nd an inter nal  m an agement s tr uc t ure   sho uld :

 ο

p r io r itis e the  allo c ation of t he  avai lable  res ource s;

 ο

 ο

co o rd inate and mo nitor  all ac t ivi ti es  unt il th e com plet ion 
o f t he d eco mmis sioning process;   and   

direct the decommissioning teams to ensure the safety and 
co st  ef fe c tivene s s of  the proje c t.   

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
25

38.   A  s ignific ant  p ar t  of   the  p rogram me s’  ex pen d iture   (2 6 %)   h as 
be en  al l oc ated  to   p romo te  th e  pla nn i ng   an d  i mple me nt ati on 
of  the  de co mmissio nin g p roces s,  n otably  t h rough :

 ο

f u l l y   c o v e r i n g   t h e   c o s t s   o f   s p e c i a l i s e d   d e c o m m i s s i o n i n g 
consultanc y ser vices embedded in the plant operators’ or-
g anisat io ns, wo r th 125 million  e uro;  a n d     

 ο

f i n a n c i n g   p e r s o n n e l   c o s t s   w o r t h   1 4 7   m i l l i o n   e u r o   f o r 
aro un d 1 500  emp l oyee s  in all  three plant s.

These costs are additional to the operational costs of the EBRD 
(1 6,8  mil lio n euro) and the CPMA ( 1 , 5  mi lli on  euro).

39.  

 The reactors were shut down between 2002 and 2009. However, 
t h e   p ro gra m m e s   h ave   n o t   ye t   t r i g g e re d   t h e   re q u i re d   o rg a n i-
s at i o n a l   c h a n g e s   to   t u r n   t h e   o p e rato r s   i nto   e f fe c t i ve   d e co m-
miss ioning  o rg anis ations. I t is n oted  in  pa r ti cular  t h at :   

 ο

 ο

 ο

t h e   d e co m m i s s i o n i n g   o rg a n i s at i o n s   o r   s e r v i ce s   h ave   l i m -
i te d   i n f l u e n ce   o n   p r i o r i t y   s e t t i n g   a n d   s u b s e q u e nt   a l l o c a -
t ion  of  avail abl e reso urces; 

du e  to  t he  ab se nce  o f  ad equ ate  plann ing   an d  m on itor i n g 
to o ls,  t hey  canno t  as s ess  progres s  a ch ie ve d  i n  t h e  i mple -
me nt at io n o f th e decommiss ioni n g  plan s ; an d th at

re s p o n s i b l e   d e p a r t m e n t s   a re   s t i l l   ve r y   d e p e n d e n t   o n   t h e 
work of the ex ternal consultants, even for tasks of a purely 
adm inist rat ive  n atu re.   

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
 
CONCLUSIONS AND  
RECOMMENDATIONS

26

40.  

41.  

E U   f i n a n c i a l   a s s i s t a n c e   t o   s u p p o r t   d e c o m m i s s i o n i n g   a n d 
m i t i g a t i o n   m e a s u re s   i n   B u l g a r i a ,   L i t h u a n i a   a n d   S l o v a k i a   h a s 
h e l p e d   t h e s e   M e m b e r   S t a t e s   t o   m e e t   t h e i r   c o m m i t m e n t s   t o -
w a r d s   t h e   e a r l y   c l o s u r e   o f   e i g h t   n u c l e a r   r e a c t o r s .   R e a c t o r s 
are now closed and par tly defuelled, major preparator y wor ks 
have be en imp lem ented and dism ant li ng  wor k s  h ave s ta r ted. 
Howe ver,  af ter  more  t han  10   yea r s  of   E U  a ss is tan ce,   progres s 
h a s   b e e n   s l ow,   a s   m a ny   p ro j e c t s   s t i l l   i nvo l ve   p re p a rato r y   a c-
t i v i t i e s.   M o re ove r,   t h e   s i t u at i o n   i s   rat h e r   u n c l e a r   co n ce r n i n g 
the  nee ds s til l to b e m et as  a res ul t of  t h e ear ly  c los ure si nce 
no  com pre hen sive needs ass essme nt exi s t. 

 A s   a   r e s u l t   o f   a   r e l a t i v e l y   l o o s e   p o l i c y   f r a m e w o r k ,   t h e   p r o -
gram mes  do  no t b enefit from a compre h en si ve n e ed s as se s s -
m e n t s ,   p r i o r i t i s a t i o n   a n d   t h e   s e t t i n g   o f   s p e c i f i c   o b j e c t i v e s 
a n d   r e s u l t s   t o   b e   a c h i e v e d .   B a s i c   d a t a   o n   r a d i o a c t i v e   w a s t e 
m a n a g e m e n t   i n v e n t o r i e s   ( a n d   t h e i r   c h a r a c t e r i s a t i o n s )   a r e  
e i t h e r   m i s s i n g   o r   h ave   n o t   ye t   b e e n   d e ve l o p e d   i n to   d e t a i l e d 
deco mmis sioning   p l ans.   R equired   radi oac t ive   was te  proces s-
in g a nd storag e tech no l ogies an d f ac i lit ie s h ave  not  yet  bee n 
fully designed. Responsibilities are diffused. The Commission’s 
s u p e r v i s i o n   fo c u s e s   o n   t h e   b u d g e t a r y   e xe c u t i o n   a n d   p ro j e c t 
i m p l e m e nt at i o n ,   rat h e r   t h a n   o n   t h e   a c h i e ve m e nt   o f   t h e   p ro -
gram me o b jec tives  as  a w ho le.

42.   Although the overall cost for the completion of the programmes 
is unk nown, it is clear that there is a significant funding shor t -
fal l. This  p u ts at  r isk t he co mpleti on  of  th e d ecom mi ssi on in g. 

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
27

R E C O M M E N D AT I O N	
E S TA B L I S H 	 T H E 	 E X T E N T 	 O F 	 E U 	 S U P P O R T	 	
I N 	 A 	 R E S U LT - O R I E N T E D 	 W AY

(a)  T h e  Co mm issi o n  sh o ul d  p u t  in   p la ce  th e   co n di ti o ns  f o r 
an   e f f e c ti ve,   e f f i ci e nt   an d   e co n o m i c a l   us e   o f   EU   f u n ds . 
To  this e f f e c t :

 ο I t  should  establish  a  det ai led  ne e ds   a sse ss m e nt  s howi n g 
the progress of  the programm es s o  f ar,  t he ac t iv i t i es  st i ll 
t o   b e   p e r fo r m e d   a n d   a n   o ve r a l l   f i n a n c i n g   p l a n   i d e n t i f y -
ing  the f undi ng  sources fro m t he  di f ferent  s t ak eho ld e rs.   

 ο B e f o r e   f u r t h e r   s p e n d i n g   t a k e s   p l a c e ,   t h e   C o m m i s s i o n 
s h o u l d   a n a l y s e   t h e   r e s o u r c e s   a v a i l a b l e   a n d   t h e   e x p e c t -
e d   b e n e f i t s.  Th i s   s h o u l d   l e a d   i n   t u r n   to   o b j e c t i ve s   b e i n g 
aligned with the budget made available and to the estab -
lishment of meaningful per formance indicators, which can 
subsequently be monitored and repor ted on as necessar y 
for the programme implem entat i o n  as a  wh o le.    

( b )   S h o u l d   t h e   E U   d e c i d e ,   a s   p r o p o s e d   b y   t h e   C o m m i s -

si o n , to p rov i d e f ur th e r  f in an cial  assis t an ce in  th e  n e x t   
multiannual f inancial framework , this supp or t should b e 
b a s e d   o n   a n   e x   a nte   e v a l u a t i o n   o f   t h e   EU   a d d e d   v a l u e 
o f   su ch   i nte r ve nti o n ,   i d e nti f y i n g   th e   sp e ci f i c   a c t i v i ti e s 
to   b e   f i n a n ce d   t h r o u g h   t h e   EU   b u d g e t ,   t a k i n g   a cco u nt 
o f  oth e r  f un din g   f a cili ti e s  su ch  as  St r u c t ur al  Fun ds   an d 
th e  co n di ti o ns  f o r  EU disb ur s e m e nt s .

This  R e po r t was  adop ted by Cha mbe r  II,  h e ade d by M r  Harald 
N OAC K ,   M e m b e r   o f   t h e   Co u r t   o f   Au d i t o r s,   i n   Lu xe m b o u r g   a t 
its  meeting o f 26 O c to b er 2 01 1.

Fo r  th e  Co u r t  o f  Audi to rs

Víto r  M anue l  da  S I LVA   C A L D E I R A
Presi de nt

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
 
28

A N N E X 	 I

L I F E - C YC L E 	 O F 	 A 	 N U C L E A R 	 P O W E R 	 P L A N T

SITING
The process of selecting a suitable site for a facility, including 
appropriate assessment and preparation of the related design bases.

DESIGN
The process and the result of developing a concept, detailed plans,
supporting calculations and speciﬁcations for a facility and its parts.

CONSTRUCTION
The process of manufacturing and assembling the components of a facility, 
carrying out civil works, installation of components and equipment, 
and performance of associated tests.

COMMISSIONING
The process by means of which systems and components of facilities and activities, 
having been constructed, are made operational and veriﬁed to be in accordance 
with the design and to have met the required performance criteria.

OPERATION
All activities performed to achieve the purpose for which
an authorized facility was constructed.

DECOMMISSIONING
Administrative and technical actions taken to allow the removal of 
some or all of the regulatory controls from a facility.

Principal steps:
1. Final shut down
2. Removal of radioactive sources incl. liquids
3. Decontamination, dismanting and clean-out
4. Immediate or deferred dismantling of structures
5. Waste management-treatment, storage and disposal 
of operational and decommissioning wastes
6. Survey and release of site for unrestricted use

Source: European Court of Auditors, based on general guidance material published by the International 
Atomic Energy Agency and the Nuclear Energy Agency.

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
29

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Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30

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Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
	
 
 
31

A N N E X 	 I I

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Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
32

A N N E X 	 I I I

A S S E S S M E N T 	 O F 	16	 D E CO M M I S S I O N I N G 	 P R O J E C T S

NPP

Project

Court’s assessment

Audited project 1 

Project Management Unit — Consultancy services to support the 
Project Management Unit at Bohunice V1 Nuclear Power Plant for 
the safe and cost-effective implementation of all decommissioning 
support activities funded by the BIDSF during the period 2003-
2011, and to continue the systematic development of a Bohunice 
V1 decommissioning support project pipeline with particular 
emphasis on the period 2007–13.

Audited project 2 

Reliable Heat and Steam Supply and Reconstruction of the Auxiliary 
Boiler Station at the Bohunice Site: modification to the auxiliary 
steam systems to secure back-up for Bohunice V2 (the plant in 
operation), Bohunice A1 (a separate plant under decommissioning) 
and the existing spent fuel and radioactive waste facilities, after 
the shutdown of Bohunice V1.

Bohunice

Audited project 3 

Storage Casks for Spent Fuel: the supply of 26 nuclear spent fuel 
compact storage baskets and the performance of any associated 
basket production, transport, testing and acceptance service.

Audited project 4 

Feasibility study on the enlargement of the National Repository at 
Mochovce.

Audited project 5 

Implementation of the decommissioning Programme Using the 
Human Resources Available at Bohunice V1 Nuclear Power Plant: 
the financing of personnel taking part in preparation and imple-
mentation of decommissioning activities in view of preserving the 
experience and knowledge of the plant’s staff.

The Project Management Unit’s consultant has played a key role in 
the design and implementation of the decommissioning process 
but insufficient progress was achieved in the formulation and  
implementation of the decommissioning strategy.  There are also 
weaknesses in the organisational structure.

The project has fully achieved its objectives. 
But this project does not have a clear link with the decommission-
ing process. It is more closely related to the operation of Bohunice 
V2 Nuclear Power Plant than to the closure of Bohunice V1.

The audit confirms the full achievement of the project objectives in 
line with its time plan and budget.  
It must be noted, however, that the purchased baskets will not be 
used for nuclear spent fuels actually removed from Bohunice V1 
units and were therefore not required to progress on the decom-
missioning of the plant.

There is a significant delay for this project due to the Bohunice V1 
Nuclear Power Plant’s failure to provide the information required 
for the execution of the study.
Several factors risk limiting the potential use of the feasibility 
study. 

The funding of the staff who contributed to the implementation of 
pre-decommissioning tasks, has not triggered an organisational 
change:

•  allowing a clear demarcation of staff contributing to 
the transition towards a decommissioning organisa-
tion and

•  guaranteeing a centralised and adequate monitoring 

of the pre-decommissioning activities.

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
 
 
 
 
 
33

A N N E X 	 I I I

NPP

Project

Court’s assessment

Audited project 6 (IIDSF)  

Interim storage for spent fuel assemblies from Ignalina Nuclear 
Power Plant Units 1 and 2: design and construction of an interim 
nuclear spent fuel storage facility for 19 000 nuclear spent fuel as-
semblies remaining in Units 1 and 2 to be stored in casks (designed 
and manufactured within the project).

Audited project 7 (IIDSF)  

Solid Waste Management and Storage Facility: the design, licens-
ing support, procurement, construction and commissioning of 
new solid waste management and storage facilities to be built at 
Ignalina Nuclear Power Plant.  

Ignalina

Audited  project  8 (IIDSF) 

Reliable heat and steam sources for Ignalina Nuclear Power Plant 
and Visaginas Town: the rehabilitation/replacement and extension 
of the obsolete temporary steam and heat back-up boiler station in 
order to ensure, after Unit 2 shutdown, continued reliable heat and 
steam supply to Ignalina Nuclear Power Plant during its decommis-
sioning and to the district heating system in Visaginas town. 

Audited project 9 (IIDSF) 

Engineering, planning and licensing of dismantling and decontami-
nation activities and tools for dismantling and decontamination at 
Ignalina Nuclear Power Plant Unit 1 Turbine Building: preparation 
of the major engineering, planning and licensing documents, 
necessary to obtain authorisation to implement the dismantling 
and decontamination activities at the Turbine Building of Ignalina 
Nuclear Power Plant Unit 1, and identification and procurement of 
the tools required to proceed with these dismantling and decon-
tamination activities.

There are significant delays in the implementation of the project.  
These delays have a major impact on the nuclear safety until all 
the spent fuel elements have been put in to cask and the plant’s 
operational costs (additional maintenance costs).

There are significant delays in the project implementation (sub-
project B2, Solid Waste Retrieval Facility, was delayed by 44 months 
and sub-project B3/4, Solid Waste Treatment and Storage Facilty, 
was delayed by 34 months).
These delays are critical to the overall implementation of the 
decommissioning programme, since the waste management 
routes are needed at an early stage to allow implementation of first 
Dismantling and Decontamination projects, and are likely to result 
in additional IIDSF funding to achieve completion.

The project has met the initial objectives in nature, time and 
budget and contributes to the implementation of the decommis-
sioning process.
The project was needed first of all due to the obsolescence of the 
existing systems. The Decommissioning Project Management Unit’s 
involvement to this project was not necessary due to fact that the 
construction was not directly linked to nuclear decommissioning 
concerns.

The externalisation of this project’s activities was neither based on 
an adequate assessment of the availability of required skills and 
technical capacities within the plant’s staff, nor was it based on the 
consideration of the cost-efficiency of the externalisation option.

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
 
 
 
34

A N N E X 	 I I I

NPP

Project

Court’s assessment

Audited project 10 (IIDSF)  

Support to the Project Management Unit: the provision of manage-
ment and engineering support to the Decommissioning Service 
Project Management Unit at Ignalina Nuclear Power Plant. 

Audited project 11 (CPMA) 

Ignalina

Ignalina Nuclear Power Plant site infrastructure: site preparation 
and infrastructure development (site clearance, electricity supply, 
heat supply, telecommunications, water supply) in support for the 
implementation of the major decommissioning projects.

Audited project 12 (CPMA)  

Landfill facility for very low radioactive waste: the design, construc-
tion and licensing of a landfill facility for very low-level short-lived 
solid radioactive waste.   

The Project Management Unit’s Consultant has  
significantly contributed to the evolution of the  
decommissioning project. However several shortcomings have 
been identified:

•  the scope of the consultant’s work contributes to 
increase its cost (performance of general project 
management and administrative tasks instead of focus 
on specific technical expertise on nuclear decommis-
sioning matters);
insufficient development of the organisational struc-
ture of the Ignalina NPP. 

• 

This project was, in general, implemented  
satisfactorily.
However, the significant delays incurred in the implementation 
of the ‘parent’ decommissioning projects (and sub-project B3/4 
in particular, concerning the Solid Waste Treatment and Storage 
Facility, see audited project 7) have impacted the implementation 
of the site infrastructure related sub-projects.

It should be noted:

•  that the scope of this project does not include all 

necessary phases for the storage of radioactive waste 
in the facility — only the design of the landfill facility 
and the construction of buffer storage area, intended 
for the accumulation and safe interim radioac-
tive waste storage between disposal campaigns is 
included;

•  that the project had accumulated significant delays in 

the construction licensing process.

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A N N E X 	 I I I

NPP

Project

Court’s assessment

Audited project 13

Project Management Unit – Consultancy services: consultancy sup-
port to assist Kozloduy Nuclear Power Plant in the implementation 
of the decommissioning support activities for Units 1 to 4.

Audited project 14 

Dry Spent Fuel Storage Facility: the design and construction of a 
Dry Spent Fuel Storage Facility for storing spent fuel assemblies in 
casks.

Kozloduy

Although the Project Management Unit’s consultant played a key 
role in the modification of the decommissioning strategy there are 
various shortcomings in the management of this project:  

•  project delays;
• 
• 

insufficiently reliable decommissioning cost estimates;
insufficient identification of decommissioning activi-
ties to be performed;

•  absence of radioactive waste inventories;
•  very substantial part of the consultancy work con-
cerned project administration instead of technical 
advice on the implementation of the decommission-
ing process.

There is a significant delay and budget overrun for this project:

•  the completion of the Dry Spent Fuel Storage Facility is 

delayed by 2,5 years;

•  modifications to the initial requirements resulted in 

price increases and a modification of the price basis for 
the contract, causing a 19 % budget overrun so far.

Audited project 15

Facility for Treatment and Conditioning of Solid Waste with High 
Volume Reduction Factor: the design, construction and commis-
sioning of a Plasma Melting Facility to achieve high volume reduc-
tion factor of Low and Intermediate Level Radioactive Waste.

There is a major risk for cost deviation for this project.  An experi-
mental technology was selected without:  

•  proper demonstration of its effectiveness; and
•  due consideration of the costs of operating the facility.

Audited project 16

Human Resources: promotion of the efficient use of human 
resources available at units 1 to 4 of Kozloduy Nuclear Power Plant 
for the implementation of the Updated Decommissioning Strategy, 
maintaining the knowledge of people at the site, and ensuring a 
dynamic transition from operation to decommissioning.

The funding of the staff who contributed to the implementation of 
pre-decommissioning tasks, has not triggered an organisational 
change:

•  allowing a clear demarcation of staff contributing to 
the transition towards a decommissioning organisa-
tion; and

•  guaranteeing a centralised and adequate monitoring 

of the pre-decommissioning activities.

V

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Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
 
 
 
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A N N E X 	 I V

A S S E S S M E N T 	 O F 	6	 M I T I G AT I O N 	 P R O J E C T S

NPP

Project

Court’s assessment

Audited project 1 

Bohunice

Reconstruction of the Križovany substation: provision of safe and 
reliable electricity supply to the national transmission system after 
Bohunice V1 Nuclear Power Plant final shutdown by reconstruct-
ing a 400 kV substation at Križovany, including equipment supply, 
installation, testing and commissioning, and related engineering 
and technical services during the period 2004–09.

The audit confirmed the effective completion of the intended 
reconstruction works within the time limit and budget. 
However, there is only a weak link between this project and the 
closure of Bohunice V1.

Audited project 2 (IIDSF)  

Upgrading of Lithuanian Power Plant and construction of the 
Combine Cycle Gas Turbine: the environmental, energy efficiency 
and reliability upgrading of the 1 800 MWe Lithuanian Power Plant 
in order to extend its lifetime and increase Lithuania’s security of 
supply and the stability of electricity prices.

The audit confirmed that the project achieved its results although 
with a reduced project scope (reduction of upgraded Lithuanian 
Power Plant units).  
It is noted that subsequent events have modified the initial strate-
gic factors considered for mitigation projects. As a result the Lithua-
nian Power Plant will only act as a production capacity reserve 
instead of replacing production capacity as originally planned.

Audited project 3 (CPMA) 

Ignalina

Fitting of District Heating Substations in Visaginas Housing Areas 1 
and 2+3: transformation of the district heating system of Visaginas 
town from ‘open-type’ to ‘closed-type’, in order to improve its 
efficiency and security of heat supply after the final shutdown of 
Ignalina Nuclear Power Plant. 

The audit observed significant delays in the implementation of 
this project. The second phase, in particular, concerning Visaginas’ 
second and third housing areas, has accumulated a delay of nearly  
18 months compared to its implementation plan, so that CPMA 
considered terminating the project in its present form.

Audited project 4 (CPMA)  

Contribution to the Housing and Urban Development Agency’s 
mechanism to support energy efficiency upgrading of multi-
apartment residential buildings.

The on-the-spot visits confirmed the positive results reported by 
the Agency: heat energy savings between 30 % and 60 % of origi-
nal consumption were realised for the co-financed projects. 
However, the limited share of the EU contribution allocated to the 
scheme through the CPMA channel within the overall mechanism 
(180 multifamily blocks, compared to the target population of  
24 000 residential buildings) reduced the significance of these 
positive results.

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A N N E X 	 I V

NPP

Project

Court’s assessment

Audited project 5 

Bulgaria Energy Efficiency and Renewable Energy Credit Line 
Facility: the establishment of a credit facility intended to finance 
private sector companies for industrial energy efficiency and small 
renewable energy projects.

Kozloduy

Audited project 6 

Demand Side Energy Efficiency Measures in Public Buildings: 
upgrading of the energy efficiency of public buildings (hospitals, 
schools and other).

The credit line facility has delivered results in line with the objec-
tives set, contributing to the mitigation of the early agreed closure 
of Kozloduy Nuclear Power Plant units 1 to 4.
However, the necessity of allocating further KIDSF funding to 
the facility is not fully justified, since funded sub-projects show 
economic viability and other European programmes address similar  
objectives.
Relevant public authorities in Bulgaria are not involved in the 
management of the facility. The full externalisation of the project 
management limits the coordination of measures undertaken 
within the credit line facility with those implemented in the 
context of other national or European programmes.

The project has delivered results contributing to the mitigation of 
the consequences of the early closure of Kozloduy Nuclear Power 
Plant reactors 1 to 4. 
However, the existence of other national and European pro-
grammes addressing the same objectives questions the necessity 
of KIDSF funding for improving the energy efficiency in public 
buildings.

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Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
 
 
 
EXECUTIVE	SUMMARY

I.
Wi t h   t h e   ove ra l l   g o a l   o f   i m p rov i n g   n u c l e a r 
s a f e t y,   B u l g a r i a ,   L i t h u a n i a   a n d   S l o v a k i a 
agreed to shut down eight reac tors in their 
E U   a cce s s i o n   t re a t i e s.  Th e s e  Tre a t i e s   we re 
rat i f i e d   by   a l l   M e m b e r   St ate s.  Wi t h o u t   t h e 
E U   f u n d s   p r o v i d e d   f o r   d e c o m m i s s i o n i n g 
a n d   m i t i g a t i o n   t h i s   w o u l d   n o t   h a v e   h a p -
p e n e d ,   p a r t i c u l a r l y   g i v e n   t h e   c o n c e r t e d 
p o l i t i c a l   p r e s s u r e   i n   t h e s e   t h r e e   M e m b e r 
S t a t e s,   w h i c h   re a c h e d   i t s   p e a k   d u r i n g   t h e 
severe gas  supp l y  cr is is  in ear l y  2 0 0 9.

III.	(a)
T h e   A c c e s s i o n   T r e a t i e s   s e t   t h e   p o l i c y 
f r a m e w o r k   f o r   t h e   E U ’s   f i n a n c i a l   s u p p o r t 
without quantifying the expec ted achieve -
m e n t s .   T h e   a m o u n t s   f i x e d   f o r   t h i s   a s s i s t -
ance were the outcome of political negoti -
ations, which recognised the ex traordinar y 
b u r d e n   p l a c e d   o n   t h e   M e m b e r   S t a t e s   b y 
t h e   s h u t d o w n   c o m m i t m e n t s .   A s   s u c h   t h e 
a m o u nt s   we re   n o t   a   s p e c i f i c   p ro p o r t i o n   o f 
t h e   e s t i m ate d   co s t s,   b u t   rat h e r   a n   ex p re s -
s i o n   o f   s o l i d a r i t y   b e t we e n   t h e   E U   a n d   t h e 
concer ned M emb er  St ates.

I n   t h e   i n t e r v e n i n g   y e a r s   t h e   C o m m i s s i o n 
h a s   p u t   i n   p l a c e   a   p r o c e d u r a l   f r a m e w o r k 
t h at   s e t s   s p e c i f i c   o b j e c t i ve s,   d e f i n e s   ro l e s 
and responsibilities and clear ly defines the 
r e p o r t i n g   a n d   s u p e r v i s i o n   r e q u i r e m e n t s . 
T h i s   f r a m e wo r k   a l l o w s   t h e   Co m m i s s i o n   t o 
h a v e   a   c l e a r   p i c t u r e   o f   t h e   p r o g r a m m e’s 
ach ieveme nt s in all  three M emb e r  St ate s.

T h e   C o m m i s s i o n   c o n s i d e r s   t h a t   t h e   p r o -
grammes h ave b een s uccess fu l i n re ac h i ng 
t h e   ove ra l l   g o a l   o f   s i gn i f i c a nt l y   i m p rov i n g 
n u c l e a r   s a fe t y   a s   we l l   a s   h e l p i n g   M e m b e r 
States mitigate the effec ts of ear ly closure.

38

REPLY OF THE  
COMMISSION

Th e   Co m m i s s i o n   i nte n d s   to   f u r t h e r   d e f i n e 
s p e c i f i c   o b j e c t i v e s ,   p r i o r i t i e s   a n d   r e s u l t s 
t o   b e   o b t a i n e d   w h e n   m a k i n g   i t s   l e g i s l a -
tive proposal for EU suppor t under the nex t 
multiannual  financial  framework . This  pro -
p o s a l   w i l l   t a k e   i n to   a cco u n t   t h a t   a l l   e i g h t 
n u c l e a r   p o w e r   p l a n t s   h a v e   b e e n   c l o s e d , 
stayed  closed  and  dismantling  has  star ted 
and the impac ts of early closure have been 
mitigated through replacement of capacit y 
and energy efficienc y measures.

I II .	 (b)
I n   J u l y   2 0 1 1 ,   t h e   Co m m i s s i o n   re p o r t e d   t o 
t h e   Co u n c i l   a n d   t h e   Eu ro p e a n   Pa r l i a m e nt 1 
o n   t h e   p r o g r e s s   o f   t h e   t h r e e   d e c o m m i s -
sion ing  programmes.

T h i s   r e p o r t   a n d   t h e   a c c o m p a n y i n g   C o m -
m i s s i o n   s t a f f   w o r k i n g   d o c u m e n t   c o n t a i n 
d e t a i l e d   i n fo r m a t i o n   o n   t h e   u s e   o f   f i n a n -
c i a l   r e s o u r c e s ,   w h i c h   w a s   m a d e   a v a i l a b l e 
in  the  contex t des cr ibed un der  III (a) .

D e l a y s   a n d   c o s t   o v e r r u n s   a r e   n o t   u n u -
s u a l   g i v e n   t h a t   p r o j e c t s   f i n a n c e d   b y   t h e 
p r o g r a m m e s   a r e   o f t e n   l o n g,   c o m p l e x   a n d 
politically  sen sitive.

I II .	 (c )
Fo r   n u c l e a r   s a f e t y   a n d   l i c e n s i n g   r e a s o n s , 
t h e   o rg a n i s at i o n a l   c h a n g e s,   w h i c h   a re   t h e 
c l e a r   r e s p o n s i b i l i t y   o f   t h e   n u c l e a r   p o w e r 
plant operators and not the pr imar y objec -
t i ve   o f   t h e   E U   f i n a n c i n g   p ro g r a m m e s,   c a n 
o n l y   s t a r t   o n c e   t h e   l a s t   r e a c t o r   u n i t   h a s 
been  sh ut  down.

1   COM (2011) 432 report from the Commission to the European Parliament and the 

Council On the use of financial resources during 2004–09 provided to Lithuania, 

Slovakia and Bulgaria to support the decommissioning of early shut-down nuclear 

power-plants under the Acts of Accession and SEC (2011) 914 Commission staff 

working paper ‘Nuclear Decommissioning Assistance Programme data’.

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3939

REPLY OF THE  
COMMISSION

INTRODUCTION

2 .
U n d e r   n o r m a l   c i r c u m s t a n c e s ,   o p e r a t o r s 
should ensure the financing of the decom-
m i s s i o n i n g   p r o c e s s ;   h o w e v e r,   i n   l i n e   w i t h 
i t s   R e c o m m e n d a t i o n   2 0 0 6 / 8 5 1 / E u r a t o m , 
t h e   C o m m i s s i o n   c o n s i d e r s   t h a t ,   g i v e n 
t h e i r   h i s t o r i c a l   l e g a c y   f r o m   t h e   c o m m u -
n i s t   p e r i o d   u p   to   1 9 8 9 ,   t h e   E U   s u p p o r t   fo r 
d e c o m m i s s i o n i n g   i n   B u l g a r i a ,   L i t h u a n i a 
a n d   S l o v a k i a   i s   j u s t i f i a b l e   f o r   h i s t o r i c a l 
reason s. 

T h i s   i s   i n   a c c o r d a n c e   w i t h   t h e   r e c e n t l y 
a d o p t e d   W a s t e   D i r e c t i v e   ( O J   L   1 9 9 , 
2 .8. 20 11 , p. 48 )

6 .
T h e   c l o s u r e   c o m m i t m e n t   w a s   t h e n 
e n s h r i n e d   i n   t h e   A c c e s s i o n   Tr e a t i e s   a n d 
ratif ie d by  all 27  M e mbe r States.

7 .
W h i l e   t h e   f i n a n c i a l   c o n t r i b u t i o n   d i d   h a v e 
t h e   o b j e c t i v e s   o f   d e c o m m i s s i o n i n g   a n d 
m i t i g at i o n   m e a s u re s,   t h e y   h ave   to   b e   s e e n 
i n   t h e   c o n t e x t   o f   t h e   E U ’s   o v e r a l l   o b j e c -
t i v e   i n   t h e   n u c l e a r   f i e l d ,   w h i c h   i s   t o   m a x-
imise nuclear safet y. This contr ibution was 
i n t e n d e d   a s   a n   e x p r e s s i o n   o f   s o l i d a r i t y 
b e t we e n   t h e   E U   a n d   t h e   c o n c e r n e d   M e m -
b e r   St ate s   a n d   wa s   n o t   b a s e d   o n   a   s p e c i f i c 
propor tion of est imated costs.

8 .
Th e   Acce s s i o n  Tre at i e s   p rov i d e   t h e   f ra m e -
wo r k   fo r   t h e   f u n d i n g   s c h e m e.  Th e   d e t a i l e d 
d i s c u s s i o n s   d u r i n g   t h e   a c c e s s i o n   n e g o -
t i a t i o n s   w e r e   t h e   b a s i s   f o r   t h e   f u n d i n g 
sch eme put  for ward by  t he Com m iss i on .

I n the par ticular case of ex tending suppor t 
f o r   B u l g a r i a   t o   t h e   p e r i o d   2 0 1 0 – 1 3 ,   t h e 
Co m m i s s i o n   re - e x a m i n e d   t h e   j u s t i f i c a t i o n 
f o r   s u c h   a d d i t i o n a l   f i n a n c i a l   a s s i s t a n c e 
( SE C( 20 09 ) 1 43 1 fin al).

III.	(d)
T h e   u l t i m a t e   r e s p o n s i b i l i t y   f o r   d e c o m -
m i s s i o n i n g   a n d   i t s   f i n a n c i n g   l i e s   w i t h   t h e 
M e m b e r   S t a te   i n   w h i c h   t h e   n u c l e a r   p owe r 
p l a n t   i s   s i t u a t e d .   I t   i s   n o t   f o r   t h e   E U   t o 
m a k e   u p   a ny   f u n d i n g   s h o r t f a l l.   N e ve r t h e -
l e s s ,   a c k n o w l e d g i n g   t h e   h i s t o r i c a l   c i r -
c u m s t a n ce s   f u r t h e r   E U   f i n a n c i a l   co n t r i b u -
t i o n s   fo r   t h e   p e r i o d   2 0 1 4 – 2 0   a re   c u r re nt l y 
u n d e r   d i s c u s s i o n   i n   t h e   Co u n c i l   a n d   Eu ro -
p e a n   P a r l i a m e n t   f o l l o w i n g   t h e   C o m m i s -
s i o n ’s   r e c e n t   C o m m u n i c a t i o n   ‘A   b u d g e t 
fo r   Eu ro p e   2 0 2 0 ’.   H owe ve r,   E U   s u p p o r t   w i l l 
b e   c o n d i t i o n a l   o n   t h e   c o n c e r n e d   M e m b e r 
S t a t e s   c o m m i t t i n g   a d e q u a t e   a d d i t i o n a l 
res ources. 

IV.	(a)
T h e   C o m m i s s i o n   h a s   o p e r a t e d   w i t h i n   t h e 
l e g a l   a n d   p r o c e d u r a l   f r a m e w o r k   f o r   a n 
effec tive, efficient and economic use of EU 
Funds as descr ibed under III(a). I t will con -
t i n u e   t o   wo r k   w i t h i n   t h i s   f r a m e wo r k   u n t i l 
t h e   e n d   o f   2 0 1 3   b u t   i s   f u r t h e r   d e ve l o p i n g 
it for the nex t multiannual financial frame -
wo r k .  Th e   p ro p o s a l   to   e x te n d   E U   f i n a n c i a l 
suppor t for decommissioning beyond 2013 
w i l l   b e   a cco m p a n i e d   by   a n   I m p a c t   As s e s s -
ment.

T h e   C o m m i s s i o n   w i l l   r e v i e w   i t s   p e r f o r m -
a n c e   i n d i c a t o r s   s o   t h a t   t h e y   c a n   b e   i n 
place for t he p er io d af ter 2013.

IV.	(b)
T h e   C o m m i s s i o n   w i l l   i m p l e m e n t   t h i s   r e c -
o m m e n d a t i o n ,   t h r o u g h   i t s   p r o p o s a l s   f o r 
E U   a s s i s t a n c e   b e yo n d   2 0 1 3 ,   w h i c h   w i l l   b e 
accompanied by an im p ac t  ass e s s m e nt.

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
13.
T h e   t h r e e   b e n e f i c i a r y   c o u n t r i e s   c o n t r i b -
u t e   w i t h   t h e i r   o w n   f i n a n c i a l   r e s o u r c e s   t o 
decommissioning the nuclear power plants 
a s   w e l l   a s   t o   m i t i g a t i n g   m e a s u r e s   i n   t h e 
e n e r g y   s e c t o r.   A s   s u c h ,   c o - f i n a n c i n g   h a s 
b e e n   a n   e s t a b l i s h e d   p r a c t i c e   s i n c e   t h e 
pre -acces sion  p er iod.

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REPLY OF THE  
COMMISSION

OBSERVATIONS

1 8.
A l t h o u g h   r e c o g n i s i n g   t h a t   t h e   d e c o m -
m i s s i o n i n g   p r o c e s s   i s   n o t   y e t   c o m p l e t e , 
t h e   Co m m i s s i o n   wo u l d   l i k e   t o   p o i n t   o u t   a 
number of major achievements. There have 
b e e n   s e ve ra l   ye a r s   o f   s a fe   m a i nte n a n ce   o f 
the closed reac tor units pending complete 
removal from reac tor cores. There has been 
t h e   co m p l e te   d e f u e l l i n g   o f   B o h u n i ce   re a c -
to r s   1   a n d   2   a n d   K oz l o d u y   1   a n d   2   a n d   t h e 
co re   o f   I gn a l i n a   1 .   D e co m m i s s i o n i n g   s t rat -
e g i e s   w e r e   r e v i s e d   a n d   u p d a t e d   i n   B u l -
g a r i a   a n d   S l ova k i a .   B o h u n i ce   h a s   t h e   b a s i c 
wa s te   m a n a g e m e nt   i n f ra s t r u c t u re   i n   p l a ce 
and obtained the decommissioning licence 
fo r   p h a s e   1 .   I n   B u l g a r i a   t h e   d r y   s p e n t   f u e l 
s t o r a g e   f a c i l i t y   h a s   b e e n   b u i l t ,   a s   w e l l   a s 
t h e   d e s i gn   a n d   s u p p l y   o f   m a i n   e q u i p m e n t 
fo r   t h e   f i r s t   p h a s e   o f   d e co m m i s s i o n i n g.   I n 
Lithuania some of the major waste storage 
i n f r a s t r u c t u re   b u i l d i n g s   a re   c l o s e   to   co m -
p l e t i o n   a n d   t h e   f re e - re l e a s e   m e a s u re m e nt 
f a c i l i t y   c o m p l e t e d .   T h e   d i s m a n t l i n g   h a s 
sta r te d at all th ree  s ites. 

1 9.
C e r t a i n   i n f o r m a t i o n   h a v i n g   a   s i g n i f i c a n t 
i m p a c t   o n   t h e   d e c o m m i s s i o n i n g   p l a n -
n i n g   w i l l   o n l y   b e c o m e   a v a i l a b l e   a s   w o r k 
p r o g r e s s e s .   F o r   e x a m p l e ,   p l a n n i n g   f o r 
d i s m a n t l i n g   t h e   r e a c t o r   c o r e   c a n   o n l y   b e 
f i n a l i s e d   i n   t h e   d e c o m m i s s i o n i n g   p l a n 
once the reac tor has been shut down and a 
d e t a i l e d   ra d i o l o gi c a l   c h a ra c te r i s at i o n   c a r-
r ied  out.

Th i s   t y p e   o f   i te r a t i ve   p ro ce s s   ( a l s o   k n ow n 
a s   a   g r a d u a t e d   a p p r o a c h   i n   I A E A   s a f e t y 
s t a n d a r d s )   i s   s t a n d a r d   p r a c t i c e   i n   t h e 
s e c t o r   a n d   i s   r e c o g n i s e d   a s   a n   e f f i c i e n t 
approach  to de commiss ion ing.

2 0.	(a)
G i v e n   t h e   i t e r a t i v e   n a t u r e   o f   d e c o m m i s -
s i o n i n g   p l a n n i n g   o u t l i n e d   a b o v e   ( p a r a -
g r a p h   1 9 ) ,   t h e   c o m p l e t i o n   o f   t h e   w a s t e 
i n v e n t o r i e s   d e p e n d s   o n   f u r t h e r   d e t a i l e d 
r a d i o l o g i c a l   c h a r a c t e r i s a t i o n .   T h e   d a t a 
a v a i l a b l e   w e r e   s u f f i c i e n t   f o r   d e f i n i n g   t h e 
w a s t e   i n f r a s t r u c t u r e ,   t a k i n g   i n t o   a c c o u n t 
t h a t ,   i n   p r i n c i p l e ,   t h e   f i n a l   d i s p o s a l   o f 
s p e n t   f u e l s   a n d   n u c l e a r   w a s t e   i s   o u t s i d e 
th e scope of th e programme.

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B ox	 1	
T h e   p l a s m a   m e l t i n g   t e c h n o l o g y   w a s   t h e 
m a r k e t   r e s p o n s e   t o   t h e   p r o c u r e m e n t 
p r o c e s s   a n d   w a s   a p p r o v e d   b y   t h e   r e l e -
v a n t   s a fe t y   a u t h o r i t i e s.  T h e   p r o j e c t   i s   c o -
fin anced  from n ational resources. 

Plasma melting technology can potentially 
ser ve many more pur poses than traditional 
tech n ologies.

2 6.
Th e   Acce s s i o n  Tre at i e s   o r   s u b s e q u e nt   re g-
u l a t i o n s   i d e n t i f i e d   t h e   n e e d   f o r   m i t i g a t -
i n g   m e a s u r e s .   T h e   E U   s u p p o r t   s c h e m e   i s 
design ed to en sure t hat t he meas ure s pro -
p o s e d   by   t h e   M e m b e r   S t ate   a re   i n   a cco rd -
a n c e   w i t h   a n d   b a s e d   o n   t h e i r   n a t i o n a l 
e n e r g y   s t r a t e g i e s ,   w h i c h   i n e v i t a b l y   c o n -
sider  th e impac t of  t he n uclear  pla nt s’ cl o -
sure.

M o re ove r,   fo r   B u l g a r i a ,   t h e   Co m m i s s i o n   i s 
a w a r e   t h a t   t h e   a s s e s s m e n t   w a s   o u t d a t e d 
a n d   n o   l o n g e r   r e l e v a n t .   T h e   E U   t h e r e f o r e 
m a d e   i t s   c o n t i n u e d   f i n a n c i n g   o f   m i t i g a t -
i n g   m e a s u re s   fo r   t h e   p e r i o d   2 0 1 0 – 1 3   co n -
d i t i o n a l   o n   B u l g a r i a   p r o v i d i n g   e v i d e n c e 
that projec ts proposed are integral to their 
n a t i o n a l   e n e r g y   s t r a t e g y   a n d   c o n s e q u e n -
tial to the  closure of  K oz loduy. 

2 7.	
Fo r   K oz l o d u y,   t h e   E B R D ’s   a s s e s s m e nt   i n d i-
c a t e d   t h a t   a r o u n d   5 0 0   M W   o f   p r o d u c t i o n 
capacit y would be compensated. I n Lithua -
n i a ,   E U   s u p p o r t   f o r   u p g r a d i n g   a   t h e r m a l 
p o w e r   p l a n t   l e d   t o   a n   e x p e c t e d   c a p a c -
i t y   c o m p e n s a t i o n   o f   1  0 4 5   M W   b e c o m i n g 
a v a i l a b l e   a s   re p l a c e m e n t   c a p a c i t y,   a s   w a s 
f o r e s e e n   i n   P r o t o c o l   4   t o   t h e   A c c e s s i o n 
Tre at y.

20.	(b)
Waste management plans exist for all eight 
re a c to r s.  Th e i r   d e t a i l   i m p rove s   a s   t h e   ra d i -
o l o g i c a l   c h a r a c t e r i s a t i o n   p r o g r e s s e s .   Fo r 
e x a m p l e,   s o m e   a c t i v i t i e s   to   d i s m a n t l e   t h e 
r e a c t o r   c o r e   c a n   o n l y   b e   p e r f o r m e d   a f t e r 
defuellin g.

The data for B ohunice V1 were of the qual -
i t y   re q u i re d   to   o b t a i n   t h e   p h a s e   1   n u c l e a r 
d e co m m i s s i o n i n g   l i ce n ce   f ro m   t h e   n u c l e a r 
r e g u l a t o r   a f t e r   f i r s t   h a v i n g   o b t a i n e d   a 
p o s i t i ve   o p i n i o n   f ro m   t h e   Co m m i s s i o n ,   a s 
required u nder the Euratom Tre at y.

20.	(c)
E s t i m a t i n g   d e c o m m i s s i o n i n g   c o s t s   i n 
d e t a i l   i s   a n   i t e r a t i v e   p r o c e s s .   S o m e   c o s t s 
c a n   o n l y   b e   e s t i m ate d   a cc u rate l y   o n ce   t h e 
cor respond ing  ac t iv it y has b een   de s i gn ed.

20.	(d)
T h e   E U   i s   c u r r e n t l y   f i n a n c i n g     t o o l s   a n d 
databa ses fo r a mo nitor ing sys te m .

M o n i t o r i n g   s t r u c t u r e s   ( m e e t i n g s ,   r e p o r t -
i n g )   a r e   i n   p l a c e   a t   e a c h   o f   t h e   n u c l e a r 
power pla nt s.

22.
W h i l e   k e y   p r o j e c t s   o n   t h e   c r i t i c a l   p a t h 
a t   I g n a l i n a   h a v e   b e e n   d e l a y e d ,   f o r   B o h u -
n i c e   a n d   K o z l o d u y   d e l a y s   h a v e   n o t   y e t 
impac ted on the decommissioning comple -
tion date.

T h e   f i n a l   d i s p o s a l   i s   o u t s i d e   t h e   s c o p e 
o f   t h e   d e c o m m i s s i o n i n g   p r o g r a m m e   a n d 
r e m a i n s   a   r e s p o n s i b i l i t y   o f   t h e   M e m b e r 
States conce r ned.

24.
T h e   u l t i m a t e   r e s p o n s i b i l i t y   f o r   d e c o m -
m i s s i o n i n g   a n d   i t s   f i n a n c i n g   l i e s   w i t h   t h e 
M e m b e r   S t a te   i n   w h i c h   t h e   n u c l e a r   p owe r 
p l a n t   i s   s i t u a t e d .   I t   i s   n o t   f o r   t h e   E U   t o 
m a k e   u p   a ny   f u n d i n g   s h o r t f a l l.   N e ve r t h e -
l e s s   t h e   C o m m i s s i o n   e n s u r e s   t h a t   s u c h 
i s s u e s   a r e   d i s c u s s e d   a t   m e e t i n g s   o f   t h e 
M e m b e r   S t a t e s’  M a n a g e m e n t   C o m m i t t e e . 
I n addition, it is impor tant to note that the 
EU ha s  m et its  financ ial  com mit me nts.

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

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3 2.	
D e s p i t e   t h e   a b s e n c e   o f   s y s t e m s   t o   a s s e s s 
progress against overall programme objec -
t i v e s ,   m o n i t o r i n g   a n d   r e p o r t i n g   o n   p r o -
gram me ac hievements tak es  place.

3 3.	
Joint re ply  to 3 3 and  34.

3 4.	
Th e   Co m m i s s i o n’s   2 0 1 1   re p o r t   (CO M   2 0 1 1 / 
4 3 2 )   a n d   t h e   a c c o m p a ny i n g   s t a f f   wo r k i n g 
d o c u m e n t   ( S E C   2 0 1 1 / 9 1 4 )   p ro v i d e   d e t a i l s 
of th e ac hievements.

3 5.	
T h e   C o m m i s s i o n   c o n s i d e r s   t h a t   i t   h a s 
a l w a y s   b e e n   c l e a r   t h a t   i t   h a s   o v e r a l l 
re s p o n s i b i l i t y   fo r   t h e   E U   f u n d s   c o n t r i b u t -
in g to t he  programmes.

N e ve r t h e l e s s,   t h e   g e n e r a l   f r a m e wo r k   p ro -
v i d e d   b y   t h e   A c c e s s i o n  Tr e a t i e s   h a s   b e e n 
p r o g r e s s i v e l y   c o m p l e m e n t e d   b y   a   c l e a r 
p r o c e d u r a l   f r a m e w o r k 2  f o r   i m p l e m e n t -
i n g   t h e   E U   f i n a n c i a l   s u p p o r t .   T h i s   i s   s u p -
p o r t e d   b y   t h e   E B R D   f u n d   r u l e s ,   t h e   o p e r -
a t i n g   a g r e e m e n t   b e t w e e n   t h e   E C   a n d   t h e 
C PMA ,   a s   we l l   a s   t h e   a n n u a l   Co n t r i b u t i o n 
Agre e m e nt s   w i t h   b o t h   i m p l e m e nt i n g   b o d -
ies. This framewor k now clear ly defines the 
r o l e s   a n d   r e s p o n s i b i l i t i e s   o f   t h e   i nv o l v e d 
p a r t i e s   a n d   d e f i n e s   d e t a i l e d   re q u i re m e nt s 
for monitor ing and repor ting. The Commis-
s i o n   w i l l   a l s o   p ro p o s e   f u r t h e r   s t re n g t h e n -
i n g   t h i s   f ra m e wo r k   i n   i t s   fo r t h co m i n g   p ro -
posals to ex ten d the  f un ds.

Th e   Co m m i s s i o n   co n s i d e r s   t h at   i t   h a d   s u f-
f i c i e n t   i n f o r m a t i o n   o n   w h i c h   t o   b a s e   i t s 
decisions, including infor mation that went 
b e yo n d   fo r m a l   e v a l u a t i o n s   a n d   re p o r t i n g. 
I t   h a s   a l s o   g o n e   b e y o n d   s u p e r v i s i o n   o f 
budgetar y execution, consider ing whether 
the overall objec tives have been achieved.

B ox 	2	
Fo r   K oz l o d u y,   t h e   E B R D ' s   a s s e s s m e nt   i n d i -
c a t e d   t h a t   a r o u n d   3 1  %   o f   p r o d u c t i o n 
capacit y lo st  wo ul d be co mp ens ate d.

T h e   Co m m i s s i o n   c o n s i d e r s   t h a t   t h e re   w a s 
a   s t r o n g   l i n k   b e t w e e n   t h e   c o n t r i b u t i o n 
t o   t h e   H U D A   a n d   t h e   c l o s u r e   o f   I g n a l i n a 
nuclea r p ower p l ant.

Te c h n i c a l l y   t h e   l i n k   to   t h e   c l o s u re   i s   c l e a r : 
i n s t a l l i n g   4 0 0 / 1 1 0   k V   t r a n s f o r m e r s   w a s 
n e c e s s a r y   t o   r e l i e v e   t h e   2 2 0 k V   g r i d   f o l -
l o w i n g   t h e   B o h u n i c e   V 1   s h u t   d o w n .   T h i s 
p ro j e c t   w a s   4 4  %   c o - f i n a n c e d   w i t h   S l o v a k 
res ources.

29.	
A s   f a r   a s   t h e   p r o d u c t i o n   c a p a c i t y   i s   c o n -
c e r n e d ,   t h e   C o m m i s s i o n   c o n s i d e r s   t h a t 
4 4  %   w i l l   b e   c o m p e n s a t e d   f o r   L i t h u a n i a 
and  31 % for  Bul g ar ia.

T h e   C o m m i s s i o n   c o n s i d e r s   t h a t   t h e   m i t i -
g a t i o n   m e a s u re s   we re   p r i o r i t i s e d   b y   e a c h 
o f   t h e   M e m b e r   S t a t e s   i n   a c c o r d a n c e   w i t h 
th eir nat ional  energy st rategy.

31.	
T h e   C o m m i s s i o n   c o n s i d e r s   t h a t   i t   d i d 
e n s u re   t h e   t ra n s l at i o n   o f   t h e   b ro a d   p r i o r i -
t i e s   o f   t h e   Acce s s i o n  Tre at i e s   i nto   a   co h e r -
ent set of p rojec t s.

Th e   a n n u a l   Co m b i n e d   Pro gra m m i n g   D o c u-
ment breaks the broad pr ior ities down into 
we l l - d e f i n e d   i n d i v i d u a l   o b j e c t i ve s   fo r   t h e 
u s e   o f   t h e   E U   f i n a n c i a l   s u p p o r t .   B a s e d   o n 
a   p r o p o s a l   f r o m   t h e   b e n e f i c i a r y   M e m b e r 
S t a t e   t h e s e   o b j e c t i ve s   a re   t h e n   d i s c u s s e d 
i n   t h e   M e m b e r   S t a t e s’  M a n a g e m e n t   C o m -
m i t te e.  Th e y   t h e n   b e co m e   a n   i nte gra l   p a r t 
o f   t h e   a n n u a l   C o m m i s s i o n   D e c i s i o n   o n 
f i n a n c i n g   a n d   p r o v i d e   t h e   b a s i s   f o r   t h e 
elaboration of detailed, individual projec ts 
w i t h   c l e a r l y   i d e n t i f i e d   m i l e s t o n e s   a n d 
deliverab le s.

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

2  Revised Commission Decision of procedures of 2010 and annual 
Commission Decision on financing.

 
36.	
Fo l l o w i n g   t h e   l a s t   a g r e e d   r e a c t o r   c l o s u r e 
i n   e a c h   c o u n t r y,   t h e re   i s   i n c re a s i n g   s e n s e 
o f   o w n e r s h i p   b y   t h e   M e m b e r   S t a t e s   c o n -
cer ned.

Pr o g r e s s   i s   m e a s u r e d   a n d   r e s o u r c e s   h a v e 
b e e n   u s e d   e f f e c t i v e l y.   T h e r e   i s   c l e a r   e v i -
dence of progress in decommissioning and 
i n   m i t i g a t i n g   t h e   c o n s e q u e n c e s   ( a c h i e ve -
ments were assessed, see also reply to par -
agraph 27 ) o f reac to r cl o su re.

38.	S econ d	ind ent
I t   i s   i m p o r t a n t   t o   t a k e   i n t o   a c c o u n t   t h a t 
t h e s e   p e r s o n n e l   c o s t s   a l s o   c o v e r e d   s a f e 
m a i n t e n a n c e   o f   t h e   s h u t   d o w n   r e a c t o r 
units.

39.	 	
Fo r   n u c l e a r   s a f e t y   a n d   l i c e n s i n g   r e a s o n s , 
t h e   o rg a n i s at i o n a l   c h a n g e s,   w h i c h   a re   t h e 
c l e a r   r e s p o n s i b i l i t y   o f   t h e   n u c l e a r   p o w e r 
plant operators and not the pr imar y objec -
t i ve   o f   t h e   E U   f i n a n c i n g   p ro g r a m m e s,   c a n 
o n l y   s t a r t   o n c e   t h e   l a s t   r e a c t o r   u n i t   h a s 
b e e n   s h u t   d o w n .   Fo r   e x a m p l e ,   i n   L i t h u a -
n i a   t h i s   r e o r g a n i s a t i o n   c o u l d   n o t   s t a r t 
b e fo re   2 0 1 0   a n d   i n   S l ova k i a   t h i s   re o rg a n i -
s a t i o n   c o u l d   o n l y   b e c o m e   e f f e c t i v e   o n c e 
t h e   d e c o m m i s s i o n i n g   l i c e n c e   h a d   b e e n 
obtained in J ul y 2 01 1.

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CONCLUSIONS	AND		
RECOMMENDATIONS

4 0.
W i t h o u t   t h e   E U   f i n a n c i a l   a s s i s t a n c e   t h e 
t h re e   M e m b e r   S t a t e s   wo u l d   n o t   h a ve   m e t 
t h e i r   c l o s u r e   c o m m i t m e n t s   a n d   r e f r a i n e d 
f r o m   r e o p e n i n g   t h e m   u n d e r   s o m e t i m e s 
i n t e n s e   p o l i t i c a l   p r e s s u r e ,   p a r t i c u l a r l y 
dur ing the severe gas supply cr isis in ear ly 
2 00 9.

I n   a d d i t i o n   t h e   a s s i s t a n c e   p r o v i d e d   f o r 
m a j o r   r e p l a c e m e n t   c a p a c i t y   t h a t   c o n t r i b -
u t e d   t o   t h e   f a c t   t h a t   t h e   c l o s u r e   d i d   n o t 
result  in any ele c t r icit y  blac ko ut s.

Th e   Co m m i s s i o n   c o n s i d e r s   t h a t   t h e   n e e d s 
s t i l l   t o   b e   m e t   a re   s u f f i c i e n t l y   c l e a r   g i ve n 
t h a t   t h e r e   a r e   r e v i s e d   d e c o m m i s s i o n i n g 
p l a n s   i n   p l a c e   f o r   a l l   t h r e e   s i t e s .   I n   a d d i -
tion, it is also clear that no fur ther suppor t 
f o r   m i t i g a t i o n   m e a s u r e s   w i l l   b e   r e q u i r e d 
post 2013 as the replacement capacit y will 
h a ve   b e e n   p u t   i n   p l a c e,   e n e r g y   e f f i c i e n c y 
measures implemented and the restruc tur -
ing of the net wor k successfully completed.

4 1.
W i t h i n   t h e   f r a m e w o r k   p r o v i d e d   b y   t h e 
A c c e s s i o n   Tr e a t i e s ,   t h e   p o l i c y   f r a m e w o r k 
f o r   n u c l e a r   d e c o m m i s s i o n i n g   w a s   i n t e n -
t i o n a l l y   f l e x i b l e,   i n   o rd e r   to   a l l ow   E U   s u p -
p o r t   t o   b e   a d j u s t e d   t o   t h e   M e m b e r   S t a t e 
ben eficiar y ’s ne eds. 

I n   a cco rd a n ce   w i t h   t h e   Acce s s i o n  Tre a t i e s 
a n d   s u b s e q u e n t   C o u n c i l   R e g u l a t i o n s   t h e 
Co m m i s s i o n   h a s   p u t   i n   p l a ce   a   p ro ce d u ra l 
f r a m e w o r k   t h a t   s e t s   s p e c i f i c   o b j e c t i v e s , 
d e f i n e s   r o l e s   a n d   r e s p o n s i b i l i t i e s   a n d 
c l e a r l y   d e f i n e s   t h e   r e p o r t i n g   a n d   s u p e r -
v i s i o n   r e q u i r e m e n t s .   T h e   C o m m i s s i o n ’s 
s u p e r v i s i o n   fo c u s e s   o n   a c h i e v i n g   t h e   p ro -
g r a m m e   o b j e c t i ve s,   a s   we l l   a s   o n   b u d g e t -
ar y execution and projec t implementation. 
I t has a clear pic ture of the achievement of 
th e programme s’ objec tives and  th e  st at us 
of the decommissioning programmes in all 
th ree M ember State s.

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ANNEX	III

I n   a d d i t i o n ,   w a s t e   f l o w   p l a n s   e x i s t   a n d 
t h e   re q u i re d   ra d i o a c t i ve   wa s te   p ro ce s s i n g 
and storage technologies and facilities are 
b e i n g   i d e nt i f i e d,   d e s i gn e d,   co n s t r u c te d   o r 
have  been finished.

B oh unice	 Au dited 	proj ec t 	1
The Commission considers that the decom -
m i s s i o n i n g   s t rate g y   re p o r t   h a s   b e e n   f i n a l-
i s e d   a n d   w i l l   u s e   i t   a s   a   b a s i s   f o r   f u r t h e r 
det ailing was te flows and pat hs.

42.
T h e   u l t i m a t e   r e s p o n s i b i l i t y   f o r   d e c o m -
m i s s i o n i n g   a n d   i t s   f i n a n c i n g   l i e s   w i t h   t h e 
M e m b e r   S t a te   i n   w h i c h   t h e   n u c l e a r   p owe r 
p l a n t   i s   s i t u a t e d .   I t   i s   n o t   f o r   t h e   E U   t o 
make u p any f und ing s hor tf al l.

Never theless, ack nowledging the histor ical 
c i rc u m s t a n ce s   f u r t h e r   E U   f i n a n c i a l   co n t r i-
b u t i o n   fo r   t h e   p e r i o d   2 0 1 4 – 2 0   i s   c u r re nt l y 
u n d e r   d i s c u s s i o n   i n   t h e   Co u n c i l   a n d   Eu ro -
p e a n   P a r l i a m e n t   f o l l o w i n g   t h e   C o m m i s -
s i o n’s   re ce nt   Co m m u n i c at i o n  ‘A   b u d g e t   fo r 
Europe  20 20 ’.

Recomme ndatio n	(a )	-	First 	inde nt	
A needs assessment will be par t of the pro -
p o s a l s   t o   e x t e n d   f i n a n c i a l   E U   s u p p o r t   fo r 
d e co m m i s s i o n i n g   b e yo n d   2 0 1 3 .  Th i s   t a k e s 
th e for m o f an im p ac t  as sess me nt.

Recomme ndatio n	(a )	-	S e cond	indent	
T h e   Co m m i s s i o n   h a s   o p e r a t e d   w i t h i n   t h e 
legal and procedural framework for an effec-
tive, efficient and economic use of EU Funds 
as described under III(a). I t will continue to 
wo r k   w i t h i n   t h i s   f r a m e wo r k   u n t i l   t h e   e n d 
of  2013  but  is  fur ther  developing  it  for  the 
nex t  multiannual  financial  framework . The 
p r o p o s a l   t o   e x t e n d   E U   f i n a n c i a l   s u p p o r t 
fo r   d e co m m i s s i o n i n g   b e yo n d   2 0 1 3   w i l l   b e 
accompanied by an Impact Assessment.

Fu r t h e r m o re,   t h e   l i c e n c e   h o l d e r   o b t a i n e d 
t h e   d e c o m m i s s i o n i n g   l i c e n c e   f o r   p h a s e   1 
a s   p l a n n e d   i n   J u l y   2 0 1 1 .  Wi t h   t h e   d e c o m -
m i s s i o n i n g   l i c e n c e ,   a   n e w   o r g a n i s a t i o n a l 
s t r u c t u re   b e c a m e   o p e r a t i o n a l.   Pa s t   we a k-
n e s s e s   w e r e   r e l a t e d   t o   t h e   t r a n s i t i o n 
per iod.

B oh unice	 Au dited 	proj ec t 	2
The Commission considers that this projec t 
i s   a   d i r e c t   c o n s e q u e n c e   o f   t h e   c l o s u r e  
o f   V 1   a n d ,   i n   a d d i t i o n ,   p r o v i d e s   b a c k - u p 
s te a m   a n d   h e at   fo r   a l l   t h e   B o h u n i ce   f a c i l i-
ties.

B oh unice	 Au dited 	proj ec t 	3
T h e   b a s k e t s   h a d   b e e n   p r o d u c e d   t o   c o m -
p e n s a t e   f o r   t h o s e   p r e v i o u s l y   u s e d   f o r 
spent f uel removal from  B oh uni ce V1  u nit.

B oh unice	 Au dited 	proj ec t 	5
T h e   l i c e n c e   h o l d e r   o b t a i n e d   t h e   d e c o m -
m i s s i o n i n g   l i ce n ce   fo r   p h a s e   1   a s   p l a n n e d 
i n   J u l y   2 0 1 1 .   W i t h   t h e   d e c o m m i s s i o n i n g 
l i c e n c e ,   a   n e w   o r g a n i s a t i o n a l   s t r u c t u r e 
b e c a m e   o p e r a t i o n a l .   W e a k n e s s e s   i n   t h e 
past  were related to th e transit ion  per io d.

I gnalina	 Au dited 	proj ec t 	6
Nuclear safet y is ensured by INPP staff that 
p e r fo r m   s a fe   m a i n t e n a n c e.  T h e   d e l a y   j u s t 
e x t e n d s   t h e   p e r i o d   o f   s a f e   m a i n t e n a n c e 
an d does not  impac t upon  n uc lear  s afet y.

T h e   C o m m i s s i o n   w i l l   r e v i e w   i t s   p e r f o r m -
a n c e   i n d i c a t o r s   s o   t h a t   t h e y   c a n   b e   i n 
place for t he p er io d af ter 2013.

I gnalina	 Au dited 	proj ec t 	7
The  delays are being  addres sed.

Recomme ndatio n	(b)	
T h e   C o m m i s s i o n   w i l l   i m p l e m e n t   t h i s   r e c -
o m m e n d a t i o n ,   t h r o u g h   i t s   p r o p o s a l s   f o r 
E U   a s s i s t a n c e   b e yo n d   2 0 1 3 ,   w h i c h   w i l l   b e 
accompanied by an im p ac t  ass e s s m e nt.

I gnalina	 Au dited 	proj ec t 	8
I I D S F   r u l e s   r e q u i r e   a   P M U.   A s   t h e   b e n e f i -
c i a r y   f o r   t h i s   p r o j e c t   w a s   I N P P,   t h e   P M U 
func tion was assured by the DPMU to avoid 
creatin g an  additional PMU  at Ign alin a.

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
4545

REPLY OF THE  
COMMISSION

ANNEX	IV

B oh unice	 Au dited 	proj ec t 	1
The Commission considers that there was a 
clear lin k  as th e proj ec t was  a d ire c t res ult 
o f   t h e   p o w e r   i m b a l a n c e   r e s u l t i n g   f r o m 
B ohun ice V1  s hutdown .

I gnalina	 Au dited 	proj ec t 	2
Th e   u p gra d e   o f   L P P   p rov i d e d   re p l a ce m e nt 
c a p a c i t y.   I t   i s   t h e   e c o n o m i c   c o n t e x t   t h a t 
defines the balance bet ween using the LPP 
o r   i m p o r t i n g   e l e c t r i c i t y.   R e l i a b l e   p r o d u c -
t i o n   c a p a c i t y   i s   r e q u i r e d   i f   t h e   e c o n o m i c 
contex t c han ges.

I gnalina	 Au dited 	proj ec t 	3
T h e   C P M A   c o n t i n u e s   t o   r e c o g n i s e   t h e 
i m p o r t a n ce   o f   co nve r t i n g   t h e   2 n d   a n d   3 rd 
housing areas of Visaginas to a closed-t ype 
dist r ic t h eat in g s ystem.

I gnalina	 Au dited 	proj ec t 	4
T h e   C o m m i s s i o n   o b s e r v e s   t h a t   t h e   t e r -
m i n a t i o n   o f   t h e   p r o j e c t   w a s   d e c i d e d   b y 
n at i o n a l   a u t h o r i t i e s   fo l l ow i n g   a   c h a n g e   o f 
pr ior it ies. 

Koz lo duy	Au dited 	proj ec t 	5
B E E R E C L   a d d r e s s e s   i n v e s t m e n t s   i n   t h e 
p r i v a t e   s e c t o r.   I n   t e r m s   o f   c o o r d i n a t i o n 
t h e   p u b l i c   a u t h o r i t i e s   ( M i n i s t r y )   i s   f u l l y 
involved.

T h e   E B R D   h a s   i n i t i a t e d   a   g r a d u a l   p h a s -
i n g   o u t   o f   t h e   i n c e n t i v e s   p r o v i d e d   a n d 
i n c r e a s e d   t h e   e l i g i b i l i t y   c r i t e r i a   f o r   s u c h 
projec ts.

Koz lo duy	Au dited 	proj ec t 	6
B u l g a r i a   j o i n e d   t h e   E U   i n   2 0 0 7   a n d   h e n c e 
i t   w a s   o n l y   f r o m   t h e n   t h a t   i t   h a d   a c c e s s 
t o   t h e   f u l l   r a n g e   o f   E U   f u n d s .   A t   t h e   t i m e 
o f   p l a n n i n g   a n d   i m p l e m e n t a t i o n   o f   t h e 
p r o j e c t   ( 2 0 0 4 – 0 5 )   t h e   s i t u a t i o n   w a s   v e r y 
different.

Ignali na	Audi te d	proje c t 	9
T h e   C o m m i s s i o n   c o n s i d e r s   t h a t   e x t e r -
n a l i s a t i o n   w a s   b a s e d   o n   t h e   f a c t   t h a t   t h e 
I g n a l i n a   N P P   U n i t   o n l y   h a d   l i m i t e d   c a p a -
bilities to per for m the necessar y investiga -
tions and  s tu dies.

Ignali na	Audi te d	proje c t 	10
T h e   C o m m i s s i o n   c o n s i d e r s   t h a t   i t   w a s 
i m p o r t a n t   t o   b r i n g   i n   e x t e r n a l   e x p e r t i s e 
f o r   t h e   g e n e r a l   p r o j e c t   m a n a g e m e n t   a n d 
p ro c u re m e nt   a s   t h i s   ex p e r t i s e   wa s   l a c k i n g 
amongst t he  IN PP  staff.

Ignali na	Audi te d	proje c t 	12
T h e   C o m m i s s i o n   c o n s i d e r s   t h a t   s e p a r a t -
i n g   t h e   d e s i g n   o f   t h e   l a n d f i l l   f r o m   i t s 
c o n s t r u c t i o n   s e r v e s   t o   d e f i n e   s c o p e   a n d 
c o s t s   w h i c h   w i l l   b e   i n c u r r e d   a t   t h e   ( m o r e 
e x p e n s i ve )   s e c o n d   s t a t e   m o re   c l o s e l y   a n d 
t h e re by   gi ve s   a   s o u n d e r   b a s i s   fo r   e nte r i n g 
into a  cons truc tion  contrac t.

Kozlo duy	Audi te d	proje c t 	13
T h e   C o m m i s s i o n   c o n s i d e r s   t h a t   i t   w a s 
i m p o r t a n t   t o   b r i n g   i n   e x t e r n a l   e x p e r t i s e 
f o r   t h e   g e n e r a l   p r o j e c t   m a n a g e m e n t   a n d 
p ro c u re m e nt   a s   t h i s   ex p e r t i s e   wa s   l a c k i n g 
amongst t he  KNPP st aff.

R egarding the reliabilit y of cost estimates, 
i d e n t i f i c a t i o n   o f   d e c o m m i s s i o n i n g   a c t i v i -
t i e s ,   a n d   a b s e n c e   o f   R AW   i n v e n t o r i e s   s e e 
Commissio n rep lies  to p aragrap h  2 0 .

Kozlo duy	Audi te d	proje c t 	14
T h e   d e l a y s   c a n   b e   e x p l a i n e d   b y   t h e   n e e d 
t o   m o r e   t h a n   d o u b l e   t h e   c a p a c i t y   o f   t h e 
facilit y.

Kozlo duy	Audi te d	proje c t 	15
Such  a r isk  nee ds  to  b e addres s e d. 

Kozlo duy	Audi te d	proje c t 	16
T h e   C o m m i s s i o n   c o n s i d e r s   t h a t   s i n c e  
u n i t s   3   a n d   4   a re   i n   c o l d   s h u t d o w n   m o d e, 
t h e   r e c e n t   t r a n s f e r   o f   u n i t s   1   a n d   2   w i l l 
provide fo r suc h a demarc atio n.

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

Special Report No 16/2011 – EU Financial assistance for the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 

 
 
European Court of Auditors

Special	Report	No	16/2011

EU	Financial	assistance	for	the	decommissioning	of	nuclear	plants	in	Bulgaria,	Lithuania	and	Slovakia:		

Achievements	and	future	challenges 

Luxembourg: Publications Office of the European Union

2011 — 45 pp. — 21 × 29.7 cm

ISBN 978-92-9237-443-3

doi:10.2865/47608

How	to	obtain	EU	publications

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Q
J
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A
B
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1
0
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0
1
4
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E
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C

IN THE  FRAMEWORK  OF THE  EU  ACCESSION  NEGOTIATIONS,  BULGARIA,  LITHUANIA  AND 

SLOVAKIA  COMMITTED  TO  THE  EARLY  CLOSURE  AND  DECOMMISSIONING  OF  EIGHT 

NUCLEAR  REACTORS,  THUS  FACING  A  SIGNIFICANT  PRODUCTION  CAPACITY  LOSS.  THE 

COURT ASSESSED THE EFFECTIVENESS OF THE EU FINANCIAL ASSISTANCE (2 850 MILLION 

EURO  UP TO  NOW)  IN  SUPPORTING  RECIPIENT  COUNTRIES’  EFFORTS TO  DECOMMISSION 

THEIR CLOSED NUCLEAR REACTORS AND TO ADDRESS THE CONSEQUENCES OF THE EARLY 

CLOSURE.  THE  COURT  FOUND  THAT  PROGRESS  HAS  BEEN  SLOW,  NO  COMPREHENSIVE 

ASSESSMENT  OF  FUTURE  NEEDS  EXISTS,  AND  AVAILABLE  FUNDING 

IS  PLAINLY  

INSUFFICIENT.  THE  COURT  RECOMMENDED  MAKING  CONDITIONAL  ANY  FURTHER  

SUPPORT UPON AN EVALUATION OF THE EU ADDED VALUE.

EUROPEAN COURT OF AUDITORS