On January 8, 2025, Kozloduy NPP EAD announces a public procurement with the subject of "Implementation of repair and replacement activities of main and auxiliary equipment, and systems of nuclear power units 5 and 6, during and/or related to the planned annual repairs during the 2025 PGR". The procedure has two separate positions with a total estimated value 113,790,812 BGN. By separate item (1) respectively 73,707,389 BGN and by item (2) 40,083,423 BGN. A regular and normal thing. But… When it comes to millions, things are always interesting. Alexander Nikolov, former executive director of the Kozloduy NPP, spoke to FAKTI on the topic.
- Mr. Nikolov, the public procurements announced by the Kozloduy NPP are regular, because the plant is a multifunctional energy mechanism. However, what impresses you about the aforementioned public procurement from January this year?
- The Kozloduy NPP is one of the largest public procurement contractors in the country. For objective reasons, because the Kozloduy NPP is the largest electricity generation enterprise with an annual capacity of about 16 million MWh.
To maintain a high level of safety and reliability, the Kozloduy NPP annually announces public procurement for preventive maintenance and repair of equipment according to the repair programs. The cost of the service increases annually for objective reasons - inflation, increase in the minimum wage in the country, aging of equipment, etc. Unfortunately, in the last few years, a subjective factor has also appeared with the increase in price, which, in my opinion, is becoming increasingly significant.
A traditional contractor for complex repair activities is the company Atomenergoremont AD. The company was once part of the Kozloduy NPP structure, but in 2003 it was privatized. However, I can safely say that Atomenergoremont AD is a proper partner of the Kozloduy NPP.
The situation is not the same with the other companies involved in the maintenance and repair of the equipment. For 2-3 years, with a bang, the company Esko Engineering AD entered the repair campaign and practically displaced the others. The problem has become especially big recently, because under the guise of repair activities, the volume of deliveries was drastically increased in the same procedure, a large part of which would have been better if they had been the subject of separate procedures, implemented in competitive conditions and in the spirit of the Public Procurement Act.
- You were a director. How is a public procurement procedure carried out at the Kozloduy NPP?
- I partially answered this question above. I would add that it should be done in conditions of competition and transparency.
- How many companies have the capacity to carry out repair activities at the nuclear power plant?
- Over the years, 7-8 companies have participated in the repair campaigns, but recently the competition has been “killed“ and reduced to 2-3.
- Are the prices in this public procurement realistic?
- No! Although I commented on “Atomenergoremont“ AD in a positive way above, I believe that their price has now been inflated by about 15%.
What are the facts:
Bids have been submitted as follows:
1. For the first separate position – “Atomenergoremont“ AD with a price of 85,287,866.89 BGN (b.r. - 73,707,389 BGN forecast)
2. For the second separate item – DZZD „KMS Kozloduy“ with a price of 46,096,154.89 BGN (b.r. - 40,083,423 BGN forecast)
On March 17, 2025, the Public Procurement Commission held price negotiations and reached the following result:
1. For the first separate item – „Atomenergoremont“ AD with a price of 84,400,000 BGN (b.r. - 73,707,389 BGN forecast)
2. For the second separate item – DZZD “KMS Kozloduy“ with a price of 45,096,154.89 BGN (b.r. - 40,083,423 BGN forecast)
And this is evident from the estimated value of lot 1 and the agreed price. And the difference is over 10 million leva. We are talking about the public procurement from January. Particularly striking is the case of lot 2, won by the DZZD “KMS Kozloduy“. The DZZD in question is composed of 3 companies – – – Esko Engineering“ AD, &ndquo;KMS Kozloduy“ EAD and “Energoremont Kozloduy“ OOD. – – KMS Kozloduy“ EAD and “Energoremont Kozloduy“ OOD are the actual contractors of the activities, while – Esko Engineering“ AD has been given the “sweet” task of delivering the equipment stipulated in the procedure in a non-competitive environment. And the results are visible – supplies worth a total of about 17 million leva, supplies of fittings with tenfold inflated prices. As far as I know, the principal BEH has not yet issued a permit to conclude the contract and has requested a justification for the prices. Probably something will be invented as an excuse, but with all my responsibility I can say that 14 pieces of bellows fittings, intended to work in an environment with low parameters and in not particularly responsible technological positions, were calculated at about 450,000 leva per piece (at a real price of about 35,000 leva/piece, let's say 50,000 leva/piece). That is, only from these 14 pieces of fittings “Esko Engineering“ AD will earn 14 x 400,000 = 5.6 million leva. An outrage.
- Who controls what parameters will be set in a public order?
- The procedure has gone through the so-called preliminary control by the Public Procurement Agency and by a departmental commission appointed by order of the executive director. All documentation has been reviewed by a commission, negotiations have been held, the commission's report has been coordinated by the management of the Kozloduy NPP and approved by the board of directors. The last thing that is still waiting is approval from the principal BEH. How effective is the control - judge for yourself.
- Similar repairs have been carried out in previous years. Are the prices similar?
- Similar procedures have been carried out annually for more than 20 years. Information about prices and contractors is public. But such a "miracle" has not happened.