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Hungary pays Rosatom HUF 9.66 bln for Paks in March

Paks II, the project company for the upgrade of the Paks Nuclear Power Plant, paid Russiaʼs Rosatom, the general contractor for the project, HUF 9.66 billion in March, state news wire MTI reported, citing business daily Világgazdaság.

The Paks Nuclear Power Plant

"Data from the Hungarian State Treasury show the first invoice for this year, for a total of HUF 9.66 bln, was settled at the end of the first quarter," a source familiar with the matter confirmed.

Data from the Government Debt Management Agency (ÁKK) show the state called down EUR 24.5 million in credit from Russiaʼs state-owned Vnesheconombank, Világgazdaság wrote, noting that the equivalent in forints, some HUF 7.83 bln, is 80% of the amount paid to Rosatom.

The state of Russia is financing 80% of the cost of the Paks upgrade. The European Commission approved the project in 2017.

Originally, a little more than HUF 106 bln was allocated in this yearʼs central budget for the upgrade, but a delay in clearance from Brussels for the project has slowed payments, the paper said.

Last yearʼs budget allocation for the upgrade was HUF 106.6 bln, but just HUF 14 bln was paid to Rosatom, the paper added.

The two new reactors at the Paks plant are scheduled to be inaugurated in 2026-2027, though some media sources have suggested a significant delay is likely.