The European Commission has dropped part of the proceedings against Hungary related to the construction of the Paks nuclear power project. The Commission has closed the infringement proceedings over the award of the construction contract to Rosatom (Russia) without any public tender, considering that EU rules allowed public procurement without tender if the contract can reasonably be awarded to one company. The Commission will continue investigating the country's funding for the project, to assess whether it amounts to state aid.
The Paks nuclear expansion project aims to add two new 1,200 MW Russian-built VVER-1200 reactors on the site of the existing nuclear facility (four VVER-440 PWRs commissioned between 1982 and 1987). Construction of the Paks expansion is expected to start in 2018, with commissioning scheduled in 2025-2026. In January 2014, Hungary signed an agreement with Russia, which would finance up to 80% (or €10bn) of the project, build two 1,200 MW reactors on a turnkey basis and supply nuclear fuel over a 20-year period while handling and storing spent fuel elements in Russia.
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