Closure of Ignalina nuclear power plant becomes costly

Costs of closure of Ignalina nuclear power plant (INPP) goes up, the estimated completion dates are rescheduled, therefore resources of Ignalina International Decommissioning Support Fund may be insufficient, and national Budget funds may be used to that end. Such was an opinion of the National Audit Office, which had analysed decommissioning of the power plant. “In order to improve the current situation, our State should take on more leverage to manage the closure process,“ says Auditor General Rasa Budbergytë.

The NAOL stated that implementation of key and most expensive projects lacks behind. So far only a half of funds allocated to that

purpose - LTL 872 - million were used. Due to lagging implementation of projects – up to three years – their costs grew up by about two times. Increase in costs was mostly caused by growing prices of materials and works, as well as services of consultants. NAOL pointed out that a contractor received an advance payment for a large part of works, which were not even started yet, therefore the contractor could use the funds for its own purposes. It is stressed that additional funds will be needed for storing of nuclear fuel not in specially equipped storage facilities, but in the closed power plant.

The NAOL emphasized that the manner of future financing of the decommissioning of INPP is not planned yet. Therefore a model for continuation of financing of the closure of power plant was proposed to the Ministry of Energy. It was also recommended to start negotiations with the European Commission for a financial assistance to Lithuania until the full closure of the nuclear power plant.

It was also detected during the audit that a general control and accountability system of power plant closure process, which would allow more efficient management of the process and control of progress of projects‘ implementation is not developed.

As a matter of fact, decommissioning works are performed by the Decommissioning Service under the Director of the nuclear power plant; however, neither in statutes of the plant, nor in regulations of General Director the responsibility for omission or incorrect action is not provided for.

The NAOL recommended the Government to authorize an independent entity to carry out the monitoring and management of projects implemented by the power plant, to ensure the control of decommissioning of the nuclear power plant and to be directly accountible to Governmental institutions.


Public audit report is available in Lithuanian:
Use of Funds for Closure of Ignalina Nuclear Power Plant