The Slovenia Times

Finance Committee to Decide Fate of TEŠ6 Loan Guarantee


The bill providing a state guarantee for a EUR 440m loan from the European Investment Bank (EIB) for generator six of the power plant had been held up in parliament after the government demanded extra safeguards, in particular with regard to costs.

TEŠ insists it has put in place all the required safeguards after negotiations with contractors. It has sent the required documents to the parliament and the Ministry of Infrastructure and Spatial Planning, which covers energy policy.

Absent the guarantee, the principal contractor on the EUR 1.3bn project, France's Alstom, has threatened to suspend works. In recent days it has already drawn down its activity on the construction site despite the expiry of several deadlines, but work has not ground to a halt yet.

Provided that TEŠ has actually secured the demanded safeguards, the guarantee bill is likely to be approved, as the project enjoys staunch support in principle in the coalition as well as in the opposition Social Democrats (SD).


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