HSBC, Rothschild & Cie, and Societe Generale made it through to the second phase of the competition for the selection of financial advisors of Bulgaria’s second nuclear power plant Belene near the Danubian town of the same name, said the Bulgarian Energy Holding (BEH), the catch-all structure for the nation’s major energy assets.

Six companies showed up for the process, but KPMG—Maguire, Argyle and Ernst and Young dropped from the race.

The selected company will carry out a financial analysis of the project and study its economic viability.

The Ministry of Economy’s press office told Dnevnik it could not provide a timeframe for selection of an advisor, and noted that building works at the site have been put on hold until completion of the competition.

Construction of the 2,000 MW Belene nuclear power project -- which is designed to offset the loss in generating capacity at Bulgaria’s Kozloduy nuclear power facility following the premature closure of two pairs of 440 MW reactors -- was suspended after in end-2009 strategic investor Germany’s RWE pulled out. The Borissov government said Bulgaria will not benefit from retaining its 51% share in the project, which will most likely be slimmed down to 20%.

Prime minister Borissov has reiterated that he would go ahead with the project only after a European investor has been selected. After speaking with his Russian counterpart Vladimir Putin, he added that European companies will be even allowed to buy in minority stakes. Up till now, official interest has been expressed by Serbia.