The Slovenia Times

Slower TEŠ 6 Thermo Plant Construction


Alstom, which is owed EUR 154m while the government still remains to sign a loan contract with the European Investment Bank (EIB), suspended some operations at TEŠ 6 on 1 November. TEŠ Director Simon Tot told the STA that the number of workers on the ground decreased by around 10%.

Alstom said today that the TEŠ project is of key importance for Slovenia and the best solution for the plant's owner, state-owned power utility HSE, in terms of securing the energy independence and competitiveness of the country.

It added it wished to find the best solution enabling a continuation of the project, even if the scope of operations on the site needs to be reduced until funding is provided.

Tot confirmed Alstom was open for negotiations but needed some kind of assurances. In case Alstom fully withdraws, Tot sees around EUR 30m in additional costs in two months.

TEŠ owes a total of EUR 160m and is waiting for the government to sign a loan guarantee contract after the guarantee for a EUR 440m loan from the EIB has already been approved by parliament.

Finance Minister Janez Šušteršič said on 23 October that the contract would be ready for signing when all the dilemmas were cleared, but he did not wish to be more specific.

"The matter is extremely serious," Tot said last Friday, explaining that almost EUR 558m were at stake, as EUR 117.5m are also reserved with the EBRD but cannot be accessed until all formal criteria are met.

The EIB and EBRD will withdraw if TEŠ does not start drawing the loans by 30 November. If this happens, EUR 110m already borrowed would need to be returned to the EIB and EUR 82.5m to the EBRD. Another EUR 160m would need to be returned to Alstom, while additional expenses would arise as a result of the banks' withdrawal.


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