Ministerial Order related to the cost of the Cigéo storage project and impacts on the Group's consolidated financial statements
In a letter sent on 15 January 2016 to the Chairman and CEO of EDF, the Chairman of AREVA and the General Administrator of CEA, the Ministry of Ecology, Sustainable Development and Energy attached a Ministerial Order signed on the same day and related to the cost associated to the implementation of long-term management solutions of long-lived medium and high-level radioactive waste regarding the Cigéo storage project.
The cost in the order constitutes an objective to be met by Andra, in compliance with safety standards set by the Nuclear Safety Authority (ASN), in close liaison with operators of nuclear installations. Based on the Order, the cost of the Cigéo project will be regularly updated, and at least at each key milestone in the course of the project’s development (authorization to create the facility, commissioning, end of the “pilot industrial phase, safety reviews) in accordance with the opinion of the ASN.
EDF Group takes note of the Ministerial Order of 15 January 2016 related to the cost associated to the implementation of long-term management solutions of long-lived medium and high-level radioactive waste on the cost for the Cigéo storage project and will translate the impacts in its 2015 consolidated financial statements.
The cost of the project Cigéo set by this Order is 25 billion euros at the economic conditions of 2011 and will substitutes the estimated benchmark cost of 20.8 billion euros on which EDF Group relied in its consolidated financial statements at the end of December 2014 and at the end of June 2015.
Taking into account this cost will therefore result in an increase of around 800 million euros in the provisions for long-term radioactive waste management for future expenses relating to the deep storage project Cigéo on EDF Group’s consolidated accounts at the end of 2015.
The increase in provisions will have a negative impact of around 500 million euros post-tax on net income Group share in 2015. It will be up to EDF’s Board of Directors to determine the impact of this provision on the dividend that will be proposed at the General Shareholders Meeting, based on the 2015 consolidated financial statements.
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