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Lithuania moves toward fixing n-plant closure date
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LITHUANIA: May 15, 2002


VILNIUS - Lithuania's parliament removed a key legislative barrier yesterday to early closure of the country's Soviet-built nuclear power plant, authorising the government to finalise talks with the EU on its decommissioning.


Funding the enormous costs of shutting down the entire plant, which produces 70 percent of the country's electricity, remains the main financial obstacle and must be solved in on-going talks with Brussels.

The Baltic state has already agreed to shut down one of the two Chernobyl-style reactors at Ignalina nuclear power plant by 2005 but talks on the second are deadlocked over cost.

The EU has said the Baltic state must commit to closing down the second reactor no later than in 2009 if it wants to end EU accession talks this year in order to join the bloc in 2004.

In its decree issued Tuesday, parliament asked cabinet to negotiate with the EU and, by the end of June, present draft amendments to the National Energy Strategy indicating dates and terms for closure of Ignalina's second reactor.

Parliament's decree frees cabinet of a National Energy Strategy provision stating a closure date for the second bloc could only be considered in 2004.

"On a technological basis, the second reactor could be closed sometime between 2009 and 2015," parliament said in the decree, but adding that the availability of more decommissioning funds will be a key factor in deciding when.

The Lithuanian government estimates that total decommissioning of the plant will cost 2.4 billion euros ($2.17 billion) - or about 19 percent of the country's 2001 gross domestic product.

The European Commission - the EU executive - has so far proposed funding of 70 million euros per year from 2004-2006 plus another 40 million euros of pre-accession funds for Ignalina's closure.

Parliament also called in its decree for amending the energy strategy in such a way that Lithuania would be able to build a new nuclear plant to replace Ignalina.


REUTERS NEWS SERVICE

Reuters



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15 MAY 2002
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