History of the Fund establishment

Ignalina NPP decommissioning is funded by the National Decommissioning Fund of Ignalina NPP (NF) and by the International Decommissioning Support Fund of Ignalina NPP (IF).
The NF was founded in 1995 by the decision of Lithuanian Government. It is designed for accumulating money for Ignalina NPP decommissions and safe RW handling. The NF is administrated by the Board. It was established by a special decision of Lithuanian Government.

Sources of allocations to the National Fund

The NF gets 6 % of revenues from the sold power produced by Ignalina NPP. This money is transferred on a quarterly basis to a special bank account. Beside that the NF gets:

• Voluntary contributions from legal entities and private persons both from Lithuania and foreign countries and international financial institutions;
• Money from selling the property of decommissioned Ignalina NPP;
• Bank interest accumulated on the NF account, also means raised by buying and selling state bonds.

 

Procedures for payments from the National Fund

The NF means are spent only on the projects related to the Ignalina NPP decommissioning.
The Decommissioning Program was endorsed by the Parliament of Lithuania. Before April 1 of the current year a legal body, which is responsible for the implementation of an activity in the Program planned for the next year, addresses the Fund Board with a request to provide a budget for implementing the next year activities.

The Fund Board takes a decision to this extent before July 1 of the current year. On the basis of this decision the Lithuanian Ministry of Economy prepares the year estimate of the Fund expenditures. This NF expenditure estimate goes to the Lithuanian Ministry of Finance for filing payments to be made to the Program implementers in the next year.
Implementers of a specific point in the Program send quarterly progress reports to the Ministry of Economy, in which they give a detailed statement of expenditures. Ministers of Economy and Finance make the annual report on the NF money spent on Ignalina NPP decommissioning, get the agreement of he Fund Board and submit it for approval by the Government of Lithuania.

 

On the International Fund

The International Fund was founded in June 2000 at the initiative of European Commission.
The European bank of Reconstruction and Development (EBRD) is entrusted with the task of the Fund administration. The European Commission and other international donors made a commitment to contribute 210 mln. Euro to the Fund. The IF has two parts. The first, so-called "nuclear part” is earmarked for funding decommissioning projects. The second, "nonnuclear part” is foreseen for funding projects, which compensate the loss of power units, environmental protection projects in the energy sector and other projects not directly related to the NPP decommissioning. The IF operates on the basis of the Framework
Agreement between EBRD and republic of Lithuania. it is managed by the Donors Assembly.

 

 

On the cost of Ignalina NPP decommissioning

In the period of Ignalina NPP preparation for decommissioning several reports were prepared, in which the decommissioning expenses were evaluated. The preliminary estimates made by different Western consultancies using different methodologies had a great divergence. In accordance with them the decommissioning cost of two Ignalina RBMK-1500 power units would be from 1,5 to 6,0 bln Euro.
The finally accepted Ignalina NPP decommissioning plan following the scenario with immediate dismantling is for 25 years. Taking into account expenditures on the social adaptation of Visaginas inhabitants, for which the NPP is the main job- and infrastructureproviding company, the decommissioning cost will amount to 1.134 bln. Euro ($1.5 bln.). Therefore, the average annual expendi-tures on this project will be 45 mln. Euro. The table below presents the planned annual expenditures on Ignalina NPP decommissioning following the scenario of immediate dismantling.
At the initial stage of Ignalina power unit 1 decommissioning (2002 - 2006) more than 280 mln. euro was spent. A part of this money (about 40 mln. Euro) was spent on the organizational measures - restructuring and strengthening of decommissioning services.
About 250 mln. Euro was spent on engineering projects, e.g. the construction of a temporary
(for 50 years) dry storage of SNF, acquisition of equipment for the solidification of spent ion-exchange resins, building of a new boiler house for the town heating, etc.
5 mln. Euro was spent on the development of projects and programs oriented on the solution of social and environmental protection problems. It is estimated that the NF will cover about
10% of Ignalina NPP decommissioning costs. The rest will be financed by the IF.