The Lidove noviny daily reports today that CEZ’s Temelin nuclear power plant could be partially reconstructed (a CZK 5 bil.-10 bil. adjustment toward Austrian and German safety standards) in exchange for Austria’s approval of the Czech Republic’s completion of the EU energy chapter by December 11 (part of the EU-accession process). A final decision should be taken this week during high-level Czech-Austrian talks. It is not clear at the moment who would bear the total cost of a possible reconstruction of the plant (including possible activation delays). This raises some uncertainty, but we do not expect the Czech side to agree with terms that would have a significant negative impact on CEZ, because it could complicate the privatization process which is reaching its final stage. In addition, should the reconstruction take the form of a (mostly) externally financed continuous upgrade to new safety standard, the complicated issue of Austria’s opposition to energy chapter completion and to Temelin would be resolved.
Temelin’s first reactor will be re-activated today; 75%-capacity load tests will continue till December, when 90%-capacity load tests should start. The reactor should reach 100% capacity in January 2002.
Separately, trade unions have said energy-sector privatization proposal is flawed and should be modified; the Ministry of Industry should discuss the issue. Neutral.
(Jiri Soustruznik)