PRESS RELEASE
The Concession Tender Commission, which has been delegated to organise a tender for the selection of a Strategic Investor into Visaginas nuclear power plant, having analyzed the submissions to the request for binding proposals, announces that:
- In response to the request for binding proposals, by 10 November 2010 two responses were received from potential strategic investors;
- one of them did not meet tender requirements;
- Korea Electric Power Corporation (KEPCO) submitted an attractive binding proposal to co-invest in the project and to construct a nuclear power plant in the period to 2020 for an attractive fixed price;
- KEPCO representatives have visited Visaginas nuclear power plant construction site a number of times;
- regional partners were informed about KEPCO’s proposal and on the basis of the proposal declared their intention to invest in the project, which together with KEPCO’s and Lithuania‘s equity investment ensures full project funding;
- the Concession Tender Commission asked KEPCO to clarify and discuss its binding proposal;
- two weeks after submission of its proposal KEPCO unexpectedly informed the Concession Tender Commission that it is revoking its proposal, even though just prior to the withdrawal, KEPCO had publicly confirmed in the media its participation in the tender;
- due to this Prime Minister of the Republic of Lithuania Andrius Kubilius sent a letter to the President of South Korea Lee Myung-bak calling for support of KEPCO’s participation in the tender;
- having considered these circumstances Concession Tender Commission stated that in absence of valid binding proposals, which would meet the tender requirements, the winner of the tender is not selected;
- appreciating VAE project development progress and in consultations with regional partners and the European Commission, the process of granting concession by way of direct negotiations without tender, but following the same conditions, will be commenced.
The tender for granting a concession was announced on 10 December 2009. Five companies met the prequalification requirements. The requests to submit binding proposals were issued on 10 September 2010, after the non-binding proposals phase.
The regional Visaginas nuclear power plant is one of the most advanced new nuclear developments in Europe. The preparatory works have already been completed, including environmental impact and site suitability evaluations, the results of which have obtained positive IAEA evaluations.
EU Commissioner for Energy Gunther Oettinger and regional partners are informed about the situation.
