Audit Uncovers Deep Flaws in Bulgaria’s Nuclear Waste Management Project

A recent audit by the Bulgarian National Audit Office has uncovered serious deficiencies in the management and construction of the country’s National Repository for Long-Term Storage of Low- and Intermediate-Level Radioactive Waste. Delays, procurement violations, irregular appointments, and misallocated funds have plagued the project.

The repository, a strategic site near the Kozloduy Nuclear Power Plant, was commissioned to the State Enterprise for Radioactive Waste (SERAW) in 2005, with the goal of being completed by 2015. That deadline was later extended to the end of 2021. However, even that extended timeline was not met, as shown in the audit covering the period from January 1, 2022 to December 31, 2023.

According to the audit, several factors contributed to the delay: protracted approval procedures, legal challenges from NGOs, and a range of construction complications. These included unexpected site stabilization work, work stoppages following a fatal accident in 2019, supply chain disruptions, and rising material costs. Further complications arose in 2024 when one of the contractors in the German-Bulgarian consortium tasked with building the repository declared bankruptcy, forcing a reshuffle of project responsibilities.

Although the main construction activities were reportedly completed by the revised deadline of April 30, 2024, the facility still awaits a permit from the Nuclear Regulatory Agency. That is now expected by the end of 2025. The total expenditure on the first phase of construction has reached approximately BGN 160 million, with BGN 141 million coming from the Kozloduy International Decommissioning Support Fund and BGN 19 million from Bulgarian national sources.

Beyond construction delays, the National Audit Office highlighted serious issues in how SERAW conducted public procurement. Out of 33 procurement procedures carried out in 2022 and 2023, multiple breaches of the Public Procurement Act and its regulations were recorded. Irregularities included premature contract signing, incomplete documentation, and noncompliance with requirements for the participation of enterprises employing people with disabilities. One contract was found to be nearly double the expected cost.

Additional contracts, totaling about BGN 5.7 million, were awarded without proper tendering procedures. In six cases, direct awarding was used improperly for contracts exceeding thresholds that require open bidding.

Personnel policies also came under scrutiny. Of 199 appointments and reappointments during the audit period, 97% were made without competitive selection. SERAW attributed this to a lack of applicants, but the audit found that multiple hires lacked the required education or experience. In several instances, candidates provided outdated health certificates or lacked necessary medical assessments for work in a radioactive environment.

Management appointments were no better. The procedure for appointing deputy executive directors was found to lack transparency. One board member was selected without competition, and some managerial roles were filled or changed without clear justification, sometimes reversed shortly after. One deputy executive director was even found to be supervising a department he simultaneously headed, a clear conflict of interest.

The audit further revealed that SERAW had used investment funds intended for capital expenditures on current operational costs, such as filters and reagents. Nearly BGN 1 million was spent this way by the division responsible for decommissioning the Kozloduy units 1-4. This violates the 2023 State Budget Act and constitutes a breach of budgetary discipline.

In total, SERAW received over BGN 50 million from the state budget in 2022 and nearly BGN 53 million in 2023. While spending came in slightly below budget, the misuse of funds for non-capital expenses raised serious concerns.

In response to these findings, the National Audit Office has issued two recommendations to the Minister of Energy and six to the Executive Director of SERAW. The responsible parties must implement corrective actions within seven months of receiving the report.