Energy Minister: Backing down on Visaginas nuclear plant would harm Lithuania’s reputation with investors

He added, however, that the authorities had thought of safeguards and took the consequences of a potential referendum on the nuclear facility into account in a draft concession agreement.

“The project is being implemented in Lithuania and in line with Lithuania’s legislation. Hence the steps Lithuania takes are particularly visible and watched. It would be a big image risk if Lithuania [backed down on the project] after launching the work, undertaking the commitments, assuming continuous obligations through a series of government agreements. All that continuity from 2002 would be swept away. It would show that Lithuania is not a country favorable for investments. It would have repercussions on the entire Lithuanian investment environment,” he told members of parliamentary Economics Committee on Wednesday.

The concession agreement included safeguards against potential consequences for Lithuania if the results of a referendum on the construction of new facility were unfavorable for the government, he said.

“The concession agreement includes reservations for that case if the referendum was to be announced, for its consequences. That issue has been addressed and the lawyers will be able to provide comments. Hitachi and our lawyers considered and covered that,” the minister said.

Lithuania’s parliament (Seimas) is currently considering a proposal by opposition groups to hold an advisory referendum on the construction of a new nuclear power plant simultaneously with the general elections in October. Referendum is also being initiated by a civil society group, which has to collect at least 300,000 signatures in support of its initiative by 27 June.

The Greens oppose the new nuclear facility project arguing that the plant will not ensure Lithuania’s energy security and will prevent the development of alternative energy sources. They also question economic estimates made for the project.

Lithuania expects to build by 2022 a new nuclear power facility in Visaginas, next to the Ignalina facility, whose last operating reactor was shut down in late 2009, together with Latvia and Estonia. Energy companies of the three Baltic countries and Japan's Hitachi plan to participate in the project.