December 22, 2024
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Slovenia: Finance Minister confident in funding for second Krsko nuclear unit

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Slovenia’s Finance Minister, Klemen Bostjancic, has stated that the country is financially equipped to pursue the construction of a second unit at the Krsko Nuclear Power Plant, should a decision be made. The project could be financed through a combination of equity and debt, but clear regulations will need to be established.

Minister Bostjancic emphasized that the financial framework for the project must be meticulously prepared, involving collaboration with experts and international institutions, while also considering the dynamics between majority and minority partners in the equity capital. He supports the concept of a public-private partnership, referred to as “people’s bonds,” where the state would borrow from the market to fund the project. It is crucial that the terms of this relationship are clearly defined to prevent future conflicts; for example, the state should not offer lower interest rates than its own borrowing rates.

While the minister refrained from predicting specific interest rates, he indicated that the project remains attractive and discussions with investment banks have revealed a strong interest in collaboration. Slovenia is confident it can secure the necessary debt financing without negatively impacting conditions in international debt markets.

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Additionally, Bostjancic highlighted the importance of establishing an efficient management system for the project company to ensure diligence, accountability, transparency, cost-effectiveness, and fairness, while minimizing corruption risks.

An advisory referendum on the second unit of the NPP Krsko is scheduled for November 24, where the public will vote on the feasibility of the project. The key considerations will include the scale of the investment and Slovenia’s capacity to undertake it. Current estimates place the total cost of the second unit, excluding financing expenses, between 9.6 and 15.4 billion euros.

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