The shareholder agreement and subsequent agreements are subject to future government oversight.
Under the terms of the agreement, the Westinghouse Electric will provide all of the plant equipment, design, engineering and fuel.
A competitive tender, in line with European Union (EU) and Bulgarian public procurement rules, will be issued by Westinghouse for the plant, within the next year.
Bulgarian Energy Holding EAD, Kozloduy NPP and Kozloduy NPP-New Builds have selected AP1000 nuclear power plant and entered into exclusive talks in December 2013.
Scheduled to be online by 2023, the AP1000 reactor is zero-carbon baseload power designed to meet EU and Bulgarian requirements of competitive and low-carbon energy for the following 60 years.
Westinghouse president and CEO Danny Roderick said: "We are pleased to take this next significant step with Bulgarian Energy Holding and Kozloduy NPP to provide Bulgaria and Europe with the globally-recognized, most advanced technology, the AP1000 nuclear plant design."
"The AP1000 nuclear power plant will offer a unique combination of benefits to Bulgaria: unequalled safety, licensing and project certainty, job creation through sustainable localization and technology and fuel diversification, in line with EU policies and objectives.
"The AP1000 reactor will create over 20,000 direct and indirect jobs in Bulgaria, as well as sustain jobs in the United States.
"The project also will facilitate dozens of Bulgarian-U.S. commercial nuclear and other manufacturing partnerships, and establish permanent academic and technology sharing and development."
