Bulgaria presses ahead with Kozloduy expansion, tightening cost discipline and expanding local industry role

Bulgaria’s push to expand the Kozloduy nuclear power plant is entering a critical stretch, as authorities emphasize tighter cost control and more disciplined execution for the planned new reactors. The approach matters for investors and project stakeholders because nuclear construction risk often concentrates in long timelines and complex procurement, where weak contract structures can quickly translate into budget pressure.

Fixed-price contracting to limit construction risk

In discussions with South Korean partners, caretaker Energy Minister Traicho Traikov highlighted the need to avoid budget overruns. He stressed that fixed-price contractual arrangements should be used to limit financial exposure during construction.

Engineering agreement extension to prevent schedule slippage

Meetings with representatives of Hyundai Engineering & Construction and the South Korean diplomatic mission pointed to progress in project preparation. At the same time, they underscored the need to extend an existing engineering agreement that expired in early March. The extension is intended to cover additional technical work and help prevent potential delays in the project timeline.

Local participation targeted at around 30% of activities

A central priority for Bulgarian authorities is securing a meaningful role for domestic industry. The government has welcomed commitments aimed at allocating around 30% of project activities to local companies, framing the plan as a way to support economic development, particularly in the northwestern regions of the country.

Lessons from past infrastructure projects shape oversight

Officials also raised concerns about possible cost escalation, citing lessons from earlier large-scale infrastructure efforts where flexible contract structures contributed to significant budget increases. That experience has reinforced the government’s push for tighter financial oversight and clearer cost boundaries as negotiations continue.

Transparent land compensation remains a sensitive issue

Land acquisition for the project site was another key topic. Traikov said compensation processes must be transparent and fair, emphasizing that property-related matters carry both social and regulatory weight.

Contract timeline: November 2024 engineering deal now extended in principle

The original engineering contract for the Kozloduy expansion was signed in November 2024. An extension has now been agreed in principle, allowing preparatory and technical activities to continue while discussions on the broader project framework proceed.