The government seeks help to generate returns and invest in the billionaire fund that saves rates paid by the government. to finance future decommissioning of nuclear power plants. National Radioactive Waste Corporation (enresa), launched a public tender last March to hire a specialized financial advisory service to make more sophisticated investments in such a nuclear ‘piggy bank’, now worth close to 7,500m euros.
It was about to conclude that the tender was awarded a few weeks ago. International Financial Analysts (AFI), after beating on the last stretch intermediate money. However, the legal battle initiated by another applicant, who was excluded in the process, paralyzed the competition. In the process, Enresa was fired from the process capital city for offering an economical offer at “abnormally low” prices.
Now ICapital has challenged its exclusion before the Central Administrative Contract Appeals Court, the agency responsible for resolving disputes in the development of public procurement under the Ministry of Finance, resulting in the automatic suspension of processing an important contract for the public. company as specified in the official documents of the procedure.
Earn money from billionaire fund
Spain has a billion-dollar piggy bank, and for years it has been filled with fees paid by companies that produce radioactive waste, especially electricity companies that own nuclear power plants. A fund to be used for the dismantling of closed reactors and the construction of warehouses where radioactive waste will be stored, It currently has around 7,500 million euros.
Each of the nuclear power plants will continue to pay this rate and feed the fund as long as they continue to produce electricity and the planned closures of the plants between 2027 and 2035 do not occur. that piggy bank will not have to be spent until the closure of the power plants and the future construction of the planned seven temporary warehouses and large definitive nuclear waste cemetery at each power plant, the Spanish State is investing a large part of this investment. The accumulated amounts to generate the returns that feed the fund, called the Fund for the Financing of the Operations of the General Radioactive Waste Plan (PGRR).
Enresa is responsible for the management of this fund, which finances electricity companies with their rates and makes financial investments with the accumulated amounts, under the supervision and supervision of the Ministry of Ecological Transformation. Enresa has started the process of seeking expert help to be able to invest in increasingly complex markets and run more complex operations to achieve adequate profitability.
Seeking more complex investments
Enresa opened the tender for the consultancy services contract with a price of approximately 200 thousand TL in order to make financial investments in principle for the next two years. 177.500 € every two years, and if you decide to apply the extensions when they expire, this can reach around €446,000.
Enresa has a portfolio Financial assets worth 6,551 million euros at the end of 2022, after making investments last year with a nominal value of more than 2 billion euros, according to internal data of the publicly traded company. And in the years to come, the millionaire maturity of its historic portfolio will push the group to rearm to make new investments.
For years, Enresa followed a conservative management model of its financial investments and, with blatant risk aversion, allocated funds mainly to public fixed income through Treasury debt, as well as corporate debt of large European and Spanish companies with a significant asset concentration. at a constant rate and relative to Spanish and European inflation. However, after a long period of zero interest rates, the market has moved towards more complex products that require expert advice.