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 GAO report information about the cost of a Chernobyl shelter

Chernobyl Shelter Project GAO report information about the cost nd funding of of a Chernobyl shelter. Page 4

Chernobyl-Shelter-Project-GAO-report-information-about-the-cost-of- funding-a-Chernobyl-shelter

donations to the Chernobyl Shelter Fund (CSF).(2) As of September 2006, payments to CSF, earned interest, and in-kind contributions had reached about $930 million.(3) At that time, almost $380 million from CSF had been spent for administrative costs and project contracts. Thus far, the United States has contributed about $154 million ($169 million adjusted for inflation) of the total $203 million it has pledged since 1997.(4) As the largest single-country donor, the United States has provided roughly 19 percent of total contributions to CSF, whereas the European Commission has contributed the largest portion, about 26 percent of all contributions.

U.S. funding has come from appropriations under the FREEDOM Support Act, which broadly supports economic and political reforms in Ukraine and other newly independent countries following the 1991 dissolution of the Soviet Union.(5) The United States and other countries gave the responsibility to administer the Chernobyl Shelter Fund to the European Bank for Reconstruction and Development (EBRD), a multilateral bank that invests in countries from central Europe and the former Soviet Union to help build market economies and democracies.(6) EBRD subsequently established a framework for the project, including the CSF rules that defined the roles for the bank and donor governments. In addition, a


2. The European Commission is the European Union's executive body. The union's member countries are Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. Some of these countries also donate independently to the Chernobyl Shelter Fund.

3. The total does not include pledges that have not been paid into the fund. The European Bank for Reconstruction and Development (EBRD), which administers the fund, reports the total payments into CSF, expenditures, and other amounts in euros. The amounts reported here are derived from its most recent Project Progress Report of October 10, 2006, which reported these amounts as of September 30, 2006. We used the third-quarter 2006 exchange rate to convert the fund total and expenditures to U.S. dollars from euros.

4. We adjusted the U.S. contributions for inflation using a gross domestic product price index. The proportions of U.S. and European Commission contributions are based on the contributions agreements from each country in euros, as reported by EBRD in its October 10, 2006, Project Progress Report.

5. The act is more specifically named the Freedom for Russia and Emerging Eurasian Democracies and Open Markets (FREEDOM) Support Act of 1992, Pub. L. No. 102-511, 106 Stat. 3320.

6. In addition to the Chernobyl Shelter Fund, EBRD administers the Nuclear Safety Account, a multilateral fund designed to address safety improvements in Soviet-designed nuclear power reactors. This account also supports other projects such as the construction of two facilities at Chernobyl that are needed to decommission the three other reactors at the site.