UPDATE 1-Lithuania seeks firm proposals for nuclear plant

Published 09/10/2010, 06:06 AM
Updated 09/10/2010, 06:08 AM

* Lithuania wants firm proposals for nuclear plant by Nov.

* Eyes strategic investor choice by end of year

* To replace Soviet-era plant, decrease dependency on Russia

(Adds quotes, background)

VILNIUS, Sept 10 (Reuters) - Lithuania has asked investors for firm proposals by November to build a nuclear power plant to replace one shut down at the end of 2009, the Energy Ministry said on Friday.

The ministry said in a statement it expected a strategic investor to be selected by the end of the year, but declined to disclose how many potential investors had been asked for binding proposals.

Lithuania had to close its Soviet-era Ignalina facility at the end of 2009 under agreements with the European Union. It is eager to build another to decrease its reliance on Russia for energy.

"It is very important that the work is performed according to the set schedule and we hope that by the end of this year we will have a partner we can start negotiations with," Energy Minister Arvydas Sekmokas said in a statement.

The government had said earlier it expected large European utilities, such as Germany's E.ON, France's EDF or Sweden's Vattenfall, to take part in a tender.

But E.ON said in May it was not actively pursuing the Lithuanian project.

Lithuanian officials also visited a nuclear reactor site in South Korea this year, raising the possibility of interest from the Asian country in the project.

Korea Electric Power Corp (KEPCO) won a deal to build four nuclear reactors for the United Arab Emirates this year and is also aiming for a 40 percent stake in a planned Turkish plant.

Neighbouring Poland, which Lithuania had invited to take part in its project, is considering building reactors of its own.

Lithuania wants to build a new nuclear power plant by 2018-2020 at an estimated cost of 3-5 billion euros to cut its dependence on energy imported from Russia. (Reporting by Nerijus Adomaitis; editing by Anthony Barker)

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