CEZ’ plan to build a nuclear unit in Slovakia in a joint venture with the state will probably be delayed by at least five years as more time is needed to complete studies for the project, the regulator said. The feasibility study “will be delayed by at least one year, while between two and three years are needed for environmental-impact assessment,” said Marta Ziakova, the head of Slovakia’s Office for Nuclear Supervision. “If the project will be carried out, we don’t think it will be operational before 2025.” Construction, which was originally set to be completed by 2020, may cost between € 4bn and € 6bn, the Economy Ministry has said.
Due to scarce details on the project as well as its remoteness we have not pencilled it into our model and we believe most of the analysts have done the same. On top of that, any kind of delay in nuclear project should not be a surprise post-Fukushima. Therefore, the news should be neutral to the stock price.