The European Commission is continuing its investigation on the Paks nuclear power plant expansion project, considering that Hungary has so far failed to explain how the project did not conflict with state aid rules. According to the Commission, Hungary has not provided sufficient information on whether the investment is profitable on economic terms; Hungary, in turn, argues that the project complies with the market economic investor principle (MEIP) - an EC criterion for assessing state aid.
In November 2015, the Commission launched an infringement procedure against Hungary for non-compliance with EC public procurement rules for the expansion of the Paks nuclear power plant (two new 1,200 MW reactors). In January 2014, Hungary had 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. The European Commission started to investigate the construction contract, which had been awarded to Rosatom (Russia) without any public tender, as well as the fuel supply contract. The terms of the fuel supply contract were revised in April 2015.
Construction of the Paks expansion is expected to start in 2018, with commissioning scheduled in 2025-2026.
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