Efforts to advance the expansion of Bulgaria’s Kozloduy nuclear power plant have entered a sensitive phase, as authorities push for stricter cost control and more disciplined project execution for the planned new reactors.
During recent talks with South Korean partners, caretaker Energy Minister Traicho Traikov stressed the importance of avoiding budget overruns, insisting on the use of fixed-price contractual arrangements to limit financial risks over the course of construction.
Discussions with representatives of Hyundai Engineering & Construction and the South Korean diplomatic mission confirmed progress in project preparation, but also highlighted the need to extend the existing engineering agreement, which expired in early March. The extension is intended to cover additional technical work and prevent potential delays in the project timeline.
A key priority for Bulgarian authorities is securing a meaningful role for domestic industry. The government has welcomed commitments to allocate around 30% of project activities to local companies, viewing this as an opportunity to support economic development, particularly in the northwestern regions of the country.
At the same time, officials have raised concerns over potential cost escalation, drawing lessons from previous large-scale infrastructure projects where flexible contract structures led to significant budget increases. This has reinforced the government’s push for tighter financial oversight and clearer cost boundaries.
Another sensitive issue discussed was land acquisition for the project site. Minister Traikov emphasized that compensation processes must be transparent and fair, underlining the social and regulatory importance of managing property-related aspects carefully.
The original engineering contract for the Kozloduy expansion was signed in November 2024, and an extension has now been agreed in principle, allowing preparatory and technical activities to continue while negotiations on the broader project framework proceed.
