Nov. 3 (Bloomberg) -- Enel SpA's Slovak unit began a 2.8 billion-euro ($3.6 billion) project to complete two new reactors at the Mochovce nuclear plant, as the country works to replace lost power-generation capacity.

Slovenske Elektrarne AS, 66 percent owned by Italy's Enel, wants to double the number of reactors at Mochovce in southern Slovakia to four by 2013, Chief Executive Officer Paolo Ruzzini said today at a press conference at the plant.

The upgrade is part of Enel's plan to boost generation capacity in the European Union country, which is seeking to regain self-sufficiency in power production following the shutdown of Soviet-era reactors.

No dividend payments will be distributed to shareholders until the project, funded from Slovenske Elektrarne's cash flow, is completed, the unit said.

``Because of the financial markets being in turmoil these days and the cost of financing being increased, we have to rely on Slovenske Elektrarne cash flow more than in the past,'' Chief Executive Officer Fulvio Conti told reporters today in Mochovce.

``We're getting close to spending something close to 90 billion koruna ($3.78 billion) on this project and the ones we have ongoing'' in Slovakia, Conti said. ``We will have to reassess'' other planned investments.

Previously, Conti had said Enel would spend 110 billion koruna on its Slovak business through 2013.

The Mochovce project will be an ``impulse'' for the economy, Slovak Prime Minister Robert Fico said at the site today.

To contact the reporter on this story: Andrea Dudikova in Mochovce at adudikova@bloomberg.net

Last Updated: November 3, 2008 09:14 EST