(1)

During the accession negotiations in 2005, Bulgaria agreed to the closure of Units 1 and 2 and Units 3 and 4 of the Kozloduy Nuclear Power Plant by 31 December 2002 and 31 December 2006, respectively and to the subsequent decommissioning of those units. The European Union expressed its willingness to continue to provide financial assistance up to 2009 as an extension of the pre-accession aid planned under the Phare programme in support of Bulgaria’s decommissioning efforts.

(2)

In view of Bulgaria’s commitment to close Units 3 and 4 of the Kozloduy Nuclear Power Plant, Article 30 of the Act concerning the conditions of accession of the Republic of Bulgaria and Romania (hereinafter referred to as the ‘2005 Act of Accession’) established an assistance programme (hereinafter referred to as the ‘Kozloduy Programme’) with a budget of EUR 210 million for the period 2007 to 2009. That programme included assistance to cover the capacity loss as a consequence of the closure of Kozloduy Nuclear Power Plant.

(3)

International decommissioning funds managed by the European Bank for Reconstruction and Development (EBRD) have been in place for a number of years. The Union is the main contributor to those funds.

(4)

The Union recognises the effort made and the good progress achieved by Bulgaria in the decommissioning preparation stage of the Kozloduy Programme utilising the Union funds put in place until 2009, and the need for further financial support beyond 2009 in order to continue the progress with the actual dismantling operations in accordance with the 2005 Act of Accession, whilst applying the highest safety standards.

(5)

In addition, it is important to use the Kozloduy Nuclear Power Plant’s own resources, as this contributes to the availability of the necessary expertise, enhances know-how and skills, and at the same time mitigates the social and economic impact of the early closure by continuously employing the staff from the closed nuclear power plant. The continued financial support is therefore important to maintain the required safety, health and environmental standards.

(6)

The Union also recognises the need for financial support in order to progress further with mitigating measures in the energy sector given the extent of the capacity loss by the closure of the nuclear units and its impact on the security of supply in the region.

(7)

The Union recognises the need to mitigate the effect of increased environmental damage and emissions due to the replacement capacity coming mostly from increased use of lignite plants.

(8)

Consequently, provision should be made for a sum of EUR 300 million from the general budget of the Union to fund the decommissioning of the Kozloduy Nuclear Power Plant over the period from 2010 to 2013.

(9)

The appropriations of the general budget of the Union for decommissioning should not lead to distortions of competition in relation to power supply companies on the energy market in the Union. These appropriations should also be used to finance energy efficiency and savings measures in line with the acquis and the rules of the functioning of the common European energy market.

(10)

The financial assistance should continue to be made available as a Union contribution to the Kozloduy International Decommissioning Support Fund managed by the EBRD.

(11)

The tasks of the EBRD include managing the public funds allocated to the programmes for decommissioning those nuclear power units that were subject to accession-linked closure agreements. The EBRD is monitoring the financial management of these programmes so as to optimise the use of public money. In addition, the EBRD carries out the budget tasks entrusted to it by the Commission in line with the requirements 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 (2) (the Financial Regulation).

(12)

In order to ensure the highest possible efficiency and to minimise possible environmental consequences, the decommissioning of Units 1 to 4 of the Kozloduy Nuclear Power Plant should be carried out with recourse to the best available technical expertise, and with due regard to the nature and technological specifications of the units to be shut down.

(13)

The decommissioning of the Kozloduy Nuclear Power Plant will be carried out in line with the legislation on the environment, particularly Council Directive 85/337/EEC of 27 June 1985 on the assessment of the effects of certain public and private projects on the environment (3).

(14)

Principles of economy, efficiency and effectiveness in respect of the allocated funds should be ensured through evaluation and performance audits of the previously financed programmes.

(15)

A financial reference amount, within the meaning of point 38 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (4), should be included in this Regulation for the entire duration of the Kozloduy Programme, without thereby affecting the powers of the budgetary authority as set out in the Treaty on the Functioning of the European Union.

(16)

For the adoption of measures necessary for the implementation of this Regulation, the Commission should be assisted by the Committee established by Council Regulation (Euratom) No 549/2007 (5),

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measures connected with the decommissioning of the Kozloduy Nuclear Power Plant,

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measures for environmental upgrading in line with the acquis and for modernising conventional production capacity to replace the production capacity of the four reactors at the Plant, and

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other measures which stem from the decision to close and decommission the Plant and which contribute to the necessary restructuring, upgrading of the environment and modernisation of the energy production, transmission and distribution sectors in Bulgaria as well as to enhancing security of supply and energy efficiency in Bulgaria.