EDF chief says reactor delays scared UK Hinkley Point investors

PARIS, Sept 22 (Reuters) - Delays and cost overruns at two nuclear reactors under construction in France and Finland have made potential investors wary of joining a consortium led by France's EDF (Paris: FR0010242511 - news) for a similar project in Britain, EDF's chief executive said.

The French utility plans to build two European Pressurised Reactors (EPRs) at Hinkley Point with two Chinese partners, but it has not been able to find other investors for the 16 billion pound ($25 billion) project.

"For third parties observing the announcements of delays and cost overruns for the EPRs under construction, it is difficult to commit," Levy told French financial daily Les Echos.

Technical problems and tightened safety rules have delayed EDF's new-generation nuclear reactors and costs have ballooned way beyond initial estimates.

Levy said EDF's main partner for the project in western England is China General Nuclear Corp (CGN), which is also building two EPR reactors in China.

"They still have confidence in the EPR, like us," he said.

He did not specify how CGN and EDF's other Chinese partner, China National Nuclear Corp (CNNC), would divide their stake.

When the deal was signed two years ago, EDF said CGN and CNNC would take a combined 30-40 percent stake.

At the time, discussions were also taking place with a shortlist of other interested parties, which EDF said could take up to 15 percent. EDF never specified who these parties were.

Fellow French company Areva (Paris: FR0011027143 - news) had also agreed to 10 percent, but years of losses have wiped out its capital and EDF (Hanover: E2F.HA - news) has taken over Areva's reactor arm in a rescue operation. This forces EDF to take a majority stake in Hinkley Point and consolidate related debt on its already stretched balance sheet.

Speaking in Beijing this week, finance minister George Osborne said the British government would provide 2 billion pounds in initial support for Hinkley Point.

Levy also confirmed comments by Osborne who said that China could build and own a nuclear power plant in Britain in the future.

Building a Chinese reactor in Britain is part of the global partnership that EDF is developing with the Chinese, backed by British government support, Levy said.

He said EDF plans to build two EPRs in Hinkley Point, two more in Sizewell, and then a reactor based on Chinese technology -- the Hualong -- on the Bradwell site in eastern England.

"We will help getting that reactor certified. It (Other OTC: ITGL - news) will have to be adapted to the needs of the UK grid and the requirements of the UK regulator. Therefore it will be a 'UK Hualong'," he said.

Levy declined to comment on a report by Japan's Nikkei on Monday which said EDF had asked Mitsubishi Heavy Industries (Other OTC: MHVYF - news) to invest in Areva's reactor arm along with EDF and that the two were likely to start negotiations soon. (Reporting by Geert De Clercq; Editing by Keith Weir)