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Paks II nuclear plant developer reports structural damage, Rosatom claims everything is fine
“Something happened at Paks II”, a local source informed, but the statements are contradictory: the developer of the new power plant said that a wall has shifted in the work pit. The Hungarian Atomic Energy Authority (OAH) claims that they prevented further shifting. Rosatom, the Russian partner providing nuclear technology denies that anything happened and the German contractor is silent.
“Apparently, Rosatom is not paying Bauer for all their items, so the German company has halted work until their payments are settled,” the source wrote. “And the slope wall, around 10 to 15 meters high, in the partially excavated pool for Block 5, has tilted. As a result, a massive amount of soil has been placed there. It’s only a matter of days before this becomes widely known—every local worker has seen it or knows about it” – independent PM Ákos Hadházy wrote this on his Facebook page in January.
Hadházy was referring to the ongoing work at the Paks nuclear power plant, where a second block for the plant is currently being built. Workers have been busy with the excavation of the work pit, soil removal, soil stabilization, and the construction of so-called diaphragm walls. The purpose of these walls is to prevent groundwater from seeping into the work pit, which is necessary not only for the work pit itself but also for the protection of the Paks Nuclear Power Plant operating in the immediate vicinity.
The stakes are high
“If the groundwater level drops by even a few centimetres or decimetres under one side of a building – which weighs hundreds of thousands of tons – it could cause the building to shift. In this case, the nearest block—Block IV—would be at risk”, Geophysicist Dr. Gábor Timár, a member of the Hungarian Academy of Sciences (MTA), explained to Átlátszó.
The bulk of the ground preparation work is being carried out by the German-owned Bauer Magyarország Speciális Mélyépítő Kft. In 2020, the company won Rosatom’s tender with an initial contract value of €179 million, according to the plans at the time. A review of Rosatom’s tender database, based on available documents, reveals that the project’s cost has increased significantly over time. The final contract value after modifications now stands at nearly €524 million, equivalent to approximately 215 billion HUF at current exchange rates. The original planned budget for the entire Paks II project was €12.5 billion – so they are now at more than that.
According to the tender documentation, Bauer is also responsible for obtaining the necessary permits and preparing the technical plans for ground preparation. According to the schedule, soil stabilization for Block V should have been done by June 15, 20204, and by December 31, 2024, for Block VI. The rest was planned for a deadline in June 2025.
Bauer Magyarország Kft., established in 1990, has experienced significant growth over the last five years. Its revenue increased from 5.99 billion HUF to 26 billion HUF, and its pre-tax profit rose from 313 million HUF to 1.8 billion HUF between 2019 and 2023. The number of employees grew from 50 to 329. According to financial reports, the company’s sole owner, German Bauer Spezialtiefbau GmbH, last withdrew dividends from the Hungarian subsidiary in 2019, amounting to 343 million HUF.
Did the wall really tilt?
Following Ákos Hadházy’s post about movements along the wall, we requested information from Bauer Magyarország Kft., Paks II Zrt., Rosatom, and the Hungarian Atomic Energy Authority (OAH).
In response to our inquiry, Paks II Zrt. stated that “soil stabilization work in the areas of the nuclear islands for both Blocks V and VI has been completed,” and that “construction continues with adherence to and enforcement of regulations, under the continuous supervision of the Hungarian Atomic Energy Authority (OAH).”
The OAH informed Átlátszó that the media reports about the “tilting slope wall” were not confirmed by monitoring system data, on-site inspections, or the information provided by Paks II Zrt.
However, they acknowledged that Paks II Zrt. independently took measures “to support the southern wall of the excavation for Block V as a precautionary measure to prevent potential movement”.
According to the nuclear authority, “Paks II Zrt. operates a monitoring system that is updated multiple times daily, to which OAH has direct access. This system continuously measures the state of the excavation for Block V, including soil movement. Notification, intervention, and halt thresholds have been established to address potential risks as promptly as possible.”
The OAH emphasized that, so far, “no deviations or non-compliances requiring OAH’s direct intervention have occurred during site preparation activities.”
The authority also stated that it conducts inspections at least weekly and systematically organizes site visits at middle and senior management levels. Additionally, targeted inspections are carried out as needed. However, managing risks that arise during construction primarily falls under the responsibility of Paks II Zrt., according to the OAH.
The following day, Világgazdaság quoted a statement from Paks II Zrt that explicitly mentioned movement. Based on data from the monitoring system, “the degree of movement did not reach the intervention threshold – as previously determined in the plans.” However, as a precautionary measure – and considering the reduced availability of personnel during the holidays – they decided to reinforce the section of the wall.
We asked Rosatom what necessitated the wall’s reinforcement, whether it was due to construction or design flaws, and when the contractor would address the issue. We also inquired about the alleged accounting dispute, the amount in question, and the reasons for withholding payment.
Rosatom did not provide substantive answers.
They referred us to their earlier statement published in Portfolio.hu, which noted that “Bauer Magyarország Speciális Mélyépítő Kft. completed the soil stabilization under the future nuclear islands of Blocks V and VI of the Paks II nuclear power plant in accordance with the implementation schedule. Remaining works aimed at constructing auxiliary facilities are to be carried out by Bauer Kft. in the second and third quarters of 2025.” (This is no longer the June 2025 deadline we saw earlier in the schedule).
We reached out to Bauer Hungária Kft for comment but received no response. Over the phone, they informed us that they would not respond to any inquiries and would shortly issue a statement on the matter. The statement has yet to emerge as of this article’s publication.
Written by Orsolya Fülöp, translated by Vanda Mayer. Cover photo: Ákos Hadházy, Facebook. The Hungarian version of this story can be read here.