site.btaAudit Establishes Delays in Construction of Repository for Long-Term Storage of Radioactive Waste

Significant delays in the construction of a national repository for long-term storage of low- and intermediate-level radioactive waste were established by an audit of the State Enterprise Radioactive Waste agency for the January 1, 2022, to December 31, 2023, period, the Bulgarian National Audit Office (BNAO) reported on Wednesday. The audit was conducted by BNAO.

The audit report, adopted by BNAO in July this year, also found irregularities in the conduct of public procurement, which is why the Public Financial Inspection Agency and the Public Procurement Agency will be notified.

The facility, the construction of which was awarded to State Enterprise Radioactive Waste, was due to be completed in 2015. Subsequently, the deadline for commissioning the first phase was extended to the end of 2021, but this deadline was not met either.

The report recalls that the construction of the repository, which is a strategic site for national security and is close to the Kozloduy Nuclear Power Plant (NPP), is planned to take place in three stages. It is intended for the long-term storage of processed and secured radioactive waste generated solely on the territory of Bulgaria, including low- and intermediate-level radioactive waste from industry, medicine, agriculture, research and households, as well as radioactive waste from the decommissioning of nuclear power plants.

The audit found that the extended deadline of 2021 for the construction and commissioning of the first stage of the repository was not met. The State Enterprise Radioactive Waste reported that the main reasons for this relate to lengthy coordination procedures with various institutions, appeals by NGOs of the decision to build the repository and Environmental Impact Assessment decisions. Problems have also arisen during construction related to unforeseen activities.

The audit notes that a new schedule has been agreed for the completion of construction, by April 30, 2024, with the actual execution of the main works completed within this timeframe. The Nuclear Regulatory Agency is expected to issue a licence to commission the site by the end of 2025.

The costs for the period from 2004 to April 1, 2025, for the construction of the first stage of the repository, including construction and supervision, amount to about BGN 160 million, with about BGN 141 million from the Kozloduy International Decommissioning Support Fund and the remaining BGN 19 million from state funding.

The audit institution also found non-compliance in the conduct of public procurement with the Public Procurement Act, the Implementing Rules of the Public Procurement Act and the internal rules of the enterprise, most often related to non-compliance with deadlines, incomplete documentation, non-compliance with the requirement for participation of specialized enterprises or cooperatives of people with disabilities.

Six contracts (four for renovations with one company and two with another) were found to have violated the requirements of the Public Procurement Act, since they were awarded directly, even though the price exceeded the permissible threshold and required award by competitive bidding.

BNAO also found that a total of 199 employees were hired or rehired at State Enterprise Radioactive Waste during the audit period, nine of whom were in management positions. The audit revealed that in 97% of the cases, the employees were appointed without recruitment process, which was in non-compliance with regulations and internal documents. It was also found that there was a change in the composition of the Board of Directors during this period, with the new member elected and appointed without a competition. There were also short-term changes of senior managers who were then returned to their positions.

The company has entered into civilian contracts for consultancy services overlapping with the responsibilities performed by salaried employees.

As a result of the audit, BNAO made two recommendations to the Minister of Energy and six recommendations to the CEO of the company, which are to be implemented within seven months of the submission of this report.