Bulgaria would have "wasted" one billion euro if it scrapped the Belene nuclear power project is scrapped and would face payment of damages that could reach another billion euro, Bulgarian Economy Minister Traicho Traikov said during Question Time in Parliament on February 26 2010.

"Over the last five years there were only simulated studies, a simulation of guaranteed financing for 51 per cent, but none of this is feasible," Traikov said, as quoted by Bulgarian news agency BTA.

Bulgaria's Government has made no firm commitments concerning Belene and Traikov said that the project would only go ahead if it had sufficient public support.

Traikov was asked to appear in Parliament to detail the offer made by Russian state-owned nuclear corporation Rosatom to loan two billion euro for the continued construction of Belene. Rosatom's subsidiary Atomstroyexport has been contracted to build the two 1000MW reactors at Belene.

According to Traikov, the construction loan would cover 2010/11, but Bulgaria would have to find funding for Belene for the period 2012/16. "It is a construction loan, but the lender will get their money back from the profit posted by the Belene project company, if there is any. This is a risk that the lender will assume," Traikov said.

Neither would Bulgaria agree to sign a long-term contract to sell electricity at fixed prices, Traikov said.

Any new strategic investors would be offered up to 45 per cent under in the company that would build and operate Belene, according to the Rosatom proposal. If no investors are found, Bulgaria would keep 51 per cent in Belene and Rosatom would have a stake of 49 per cent.

Bulgaria called on February 19 a tender to pick a consultant that would draft a new project strategy and advise the Cabinet on the process of finding new strategic investors. Germany's RWE, picked to buy 49 per cent in the nuclear station, pulled out of the deal in October 2009.