"Rosatom" will replace partners for the construction of the first nuclear power plant in Turkey

Two Turkish partners withdrew from the project of Rosatom to build the first nuclear power plant in Turkey worth $ 22 billion. They can be replaced by the state company EUAS, which already participates in a similar project with Japan.
Origin source
New partner

In a consortium of investors, which together with Rosatom should finance the construction of the first nuclear power plant in Turkey - Akkuyu, there have been significant changes. Turkish private construction companies Kolin Insaat and Kalyon Insaat withdrew from the partnership, told RBC two sources close to the Russian state corporation and the project company Akkuyu Nuklear.

According to one of the interlocutors of RBC, the new Turkish partner of EUAS ICC will be the new partner of Rosatom in this project. A Rosatom representative confirmed to RBC the fact of negotiations with her. "The state corporation continues to search for investors for the Akkuyu project, and EUAS is one of the companies with whom we are discussing a possible joint implementation of the project," he said.

The head of the Russian-Turkish analytical center, Aydin Sezer, also knows that EUK ICC is part of Akkuyu's investor pool. The EUAS representative could not be contacted. Representatives of Kolin Insaat and Kalyon Insaat did not respond to RBC's requests.

The first Turkish nuclear power plant

Russia and Turkey concluded an intergovernmental agreement on the construction, by 2023, of a four-unit nuclear power plant with VVER-1200 reactors in the Mersin province on the Mediterranean coast in May 2010. The total investment in the project, President Vladimir Putin estimated at $ 22 billion. The station is built according to the BOO (build-own-operate) scheme, under Turkey's guarantees, to buy a stake in the future plant development at fixed prices. It was planned that 49% of the project company Akkuyu Nuclear ROSATOM will sell to Turkish investors, retaining 51%. In June 2017, an agreement was signed on the term sheet with three private Turkish companies - Cengiz Holding, Kolin Insaat and Kalyon Insaat, which were to receive 49%. The amount of the deal was not disclosed, the final shareholder agreement was planned to be signed by the end of 2017. But this did not happen.

A close associate of RBC, who was close to the project, suggested that Kolin Insaat and Kalyon Insaat did not like the fact that they should choose suppliers on a tender basis, as Akkuyu Nuklear wanted. According to him, they planned to bring their suppliers. According to the source of "Interfax", Turkish investors did not have the necessary financial resources.

In December 2017, the head of Rosatom, Alexei Likhachev, told journalists that new players are showing interest in participating in the project company. "There are new negotiators from the Turkish side," he said, adding that the deal would be closed "as soon as we agree on the terms" (quoted by Interfax).

Reputation Testing

The newspaper FT named three original partners of Rosatom - Cengiz Holding, Kolin Insaat and Kalyon Insaat - close to the government of Turkey and drew attention to the fact that in this country the level of corruption in construction projects is high. Rosatom in August 2017, in order to verify the reputation of potential partners, launched a tender to select a consultant for due diligence (the amount of the contract was set at 20.9 million rubles). But already in December 2017 the state corporation canceled this tender "in connection with the change in the demand for part of the technical assignment", as was said in the materials of Rosatom.

"In the case of Akkuyu, the government sought to involve the private sector in the project, but no one showed interest. Then he had to appoint partners for Rosatom himself, with whom Cengiz Holding, Kolin Insaat and Kalyon Insaat were chosen. And now we saw how it ended, "Aydin Sezer told RBC.

In October 2017, Rosatom announced the receipt of a limited permit for the construction of the station, which allows the construction of the Akkuyu nuclear power plant (with the exception of nuclear facilities). In January, the construction of the first facilities began, the amount of contracts reaches $ 2.9 billion, Interfax reported.

A logical choice

In Ankara thought about the development of nuclear power in the 1970s, but a number of tenders for the construction of nuclear power plants was canceled because of problems with funding and public protests.

The Akkuyu NPP project hampered both foreign policy relations between the countries, and Turkish legislation, which prohibited the construction of industrial facilities near olive groves. Turkish President Recep Tayyip Erdogan in November 2017 confirmed plans to build a nuclear power plant for the 100th anniversary of the republic, that is, by 2023. "Someone troubles an NPP. Let them worry as much as they please, but we will build them, "he said (quoted by RIA Novosti).

Turkey in 2013 concluded a similar intergovernmental agreement with Japan in order to launch by 2023 a second nuclear power plant - Sinop, which will be built by a consortium of Japanese Mitsubishi Heavy Industries and French Engie. According to Turkish media, 49% of the project with a total cost of $ 16 billion will be from the state energy company EUAS.

Sezer considers the choice of the EUAS energy holding as a partner in the Akkuyu nuclear power plant logical, since he already has a share in a similar project.

According to the Ministry of Energy and Natural Resources of Turkey at the end of the first half of 2017, EUAS accounted for a quarter of the country's total power capacity.