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HEP IS WILLING TO SELL CROATIA'S SHARE IN KRSKO NUCLEAR POWER PLANT

ZAGREB, July 21 (Hina) - The Croatian Power Industry (HEP) is willing to sell its share in the nuclear power plant Krsko to Slovenia or some other country, a HEP management board member Ante Curkovic told a news conference on Wednesday. The HEP believes the initial price of one billion German marks would be realistic. HEP director Damir Begovic believes the best solution would be if the two countries' parliaments ratified the agreements of 1970 and 1974. "The Croatian side insists that the earlier signed contracts be respected. If that is not done, it is only normal for the HEP to seek compensation", Begovic told reporters. The HEP officials reminded that Croatia has not been using electricity from Krsko for almost a year. Curkovic believes Slovenia's unilateral decisions have caused increased, non-competitive prices of electricity from Krsko, because Slovenia "has incur
ZAGREB, July 21 (Hina) - The Croatian Power Industry (HEP) is willing to sell its share in the nuclear power plant Krsko to Slovenia or some other country, a HEP management board member Ante Curkovic told a news conference on Wednesday. The HEP believes the initial price of one billion German marks would be realistic. HEP director Damir Begovic believes the best solution would be if the two countries' parliaments ratified the agreements of 1970 and 1974. "The Croatian side insists that the earlier signed contracts be respected. If that is not done, it is only normal for the HEP to seek compensation", Begovic told reporters. The HEP officials reminded that Croatia has not been using electricity from Krsko for almost a year. Curkovic believes Slovenia's unilateral decisions have caused increased, non- competitive prices of electricity from Krsko, because Slovenia "has incurred many unnecessary expenses" in the plant. Slovenia has taken a series of 'unilateral measures' between 1987 and 1998, when it adopted a decision to transform the plant into a public company and disconnect two transmission lines connecting the plant with Croatia's power system. "We believe that we have been seriously taken advantage of as regards Krsko", Curkovic said. "If talks continue it will be possible to discuss commercial conditions under which Croatia and Slovenia could find a common language", Curkovic said. Asked whether a political decision on selling Croatia's share in Krsko has been adopted, Begovic and Curkovic said the HEP was not making political decisions but it had to take care of the commercial part. Curkovic believes international arbitration would cut the price of electricity from Krsko. According to Curkovic, the value of Croatia's share in Krsko is US$392 million, which corresponds with Slovenia's estimation of Croatia's share of DM605 million. If another 30 per cent is added to that value (considering the plant's service life) it would be logic for the price to amount to one billion DM, Curkovic said. There was no comment by HEP officials on whether there have been any concrete talks on the sale of Croatia's share in Krsko. The Krsko nuclear power plant was built jointly by Croatia and Slovenia on Slovenia's territory about 20 years ago. After they gained independence, the two countries failed to transform the then valid agreement on the use of Krsko into an international agreement, which was the cause of the dispute on whether Croatia is a co-owner of or only an investor into the plant. (hina) rml

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