Bulgaria's plans to build a second nuclear power plant at Belene on the Danube River have hit a new snag, with BNP Paribas choosing not to commit any of its own money to fund the project, even though it has been picked to find financing for the power plant, Infrastructure Journal reported.

BNP Paribas will act only as an adviser and would not act as a lead arranger in a syndicated loan, even though it is described as "lead arranging and structuring bank" in the mandate it has received from Bulgaria's National Electricity Company (NEK), according to the Infrastructure Journal.

The same document goes to some lenght to specify that BNP Paribas does not have to commit its own resources, although it does describe how it would be done in case the bank makes such a decision, showing that NEK was hopeful that BNP Paribas would chip in.

Bankers quoted by the journal said that it was unusual for a bank picked to structure finance for such a big project not to make a contribution, and that it sent a message of caution to other prospective financial institutions.

With the costs of the project rising because of higher commodity prices and financial markets still in the throes of the global credit crunch, banks could be reluctant toget involved.

That could push NEK towards accepting the offer made by Vladimir Putin during his visit to Sofia earlier this year for the Russian government cover a significant part of the expenses, something NEK has been reluctant to accept thus far.