Energy and Natural Resources Minister Taner Yıldız said the final decision on the tender would be made in June, but it seems that incertitude about the matter will not be cleard up easily even if the tender is discussed at a Cabinet meeting. As only one company entered the tender and the price offered is considerably high, the Cabinet will not be able to make an easy decision. Moreover, the global economic crisis has taken its toll on funds that were to be allocated to the nuclear power plant contract.
Yıldız told Today's Zaman that they will take the matter to the Cabinet after the Turkish Electricity Trading and Contracting Company (TETAŞ) sends its assessment report on the tender to them. "It is likely that the report will be sent in the coming week. We will then brief the Cabinet about the commission's decision on the issue. Afterwards, the Cabinet will make its assessment and issue the final decision," he said.
The Cabinet is expected to debate this matter during its meeting scheduled for next Monday. If the Cabinet approves the bid, the consortium will sign the contract and proceed with the construction of the plant.
On Sept. 24, 2008, TETAŞ accepted bids and opened the first envelopes. However, despite the passage of nine months, the tender has yet to be finalized. Thirteen companies had requested specifications for the tender, but only one, the Turkish-Russian joint venture AtomStroyExport-Inter Rao-Park Teknik (AIRPT), actually filed a bid.
 Taner Yıldız |
On Dec. 19, 2008, the Turkish Atomic Energy Agency (TAEK) found the reactor proposed in the bid compatible and sent its letter of technological approval to TETAŞ. During the final stage of the tender, TETAŞ opened the last envelope containing the price offered by the successful bidder, but found it too high.
The consortium offered 21.16 kuruş for each kilowatt-hour (kWh) of electricity it will sell, but this figure is 170 percent higher than the average price TETAŞ charged during 2008: 12.82 kuruş.
Realizing that the Energy Ministry viewed their price as too high, AIRPT revised it, but the commission did not approve the price revision.
Nominal power for each unit offered by the consortium is 1,200 megawatts. The consortium also offered to use Russian-type pressurized water reactors traditionally known as VVER. Four units of VVER-120 (AES-2006) are planned to be mounted in the Akkuyu nuclear power plant. Thus, the total electricity power capacity of the nuclear power plant is 4,800 megawatts. VVER-1200-type reactors are state-of-the-art nuclear reactors and are considered extremely safe because they can even withstand plane crashes.
Russians sure to win
Although TETAŞ considers the offered price high, Russian officials are sure they will be awarded the contract. In particular, Russian Prime Minister Vladimir Putin is exerting great effort to make this happen. Putin reportedly discussed the issue during his meeting with Prime Minister Recep Tayyip Erdoğan in Sochi.
Turgay Ciner, chairman of Park Holding, the Turkish partner of the consortium, has reportedly been lobbying the government about the tender. However, Russian Federal Atomic Energy Agency (Rosatom) President Sergey Kiriyenko recently told a Russian TV station that they are sure Russia will win the Turkish tender, a statement that considerably offended the energy ministry. "All of our offers were accepted. We won the tender," Kiriyenko reportedly said. No Turkish government official has said the tender was finalized.
French expect cancellation
Meanwhile, some of the 13 companies that did not submit a bid, though they had requested the tender's specifications, are expecting the tender to be cancelled. France's Vinci Construction Grand Projects is one such company.
French Ambassador to Turkey Bernard Emie confirmed their interest and stated that they are closely monitoring developments concerning the nuclear tender. The French ambassador noted that French President Nicolas Sarkozy is particularly interested in the issue. However, given his harsh opposition to Turkey's EU membership, it is unlikely for a French company to have any chance in the tender.
AtomStroyExport is the only Russian company specialized in the provision of nuclear power plant equipment and services. A total of 49.8 percent of its shares are owned by Gazprombank, which is 69 percent owned by Gazprom, a major Russian natural gas provider to Turkey. Energy specialists are worried by the fact that awarding the nuclear contract to the current consortium will further increase Turkey's reliance on Gazprom with respect to energy. Their concerns are further boosted given the fact that Turkey offers to give a guarantee to purchase the energy it will sell for a period of 15 years.
Legal challenges
Some nongovernmental organizations, in particular the Electricity Producers' Association (EÜD), claim the whole tender process has been incorrectly carried out, putting emphasis on the high price offered by the consortium. They have even legally challenged the tender process. While the high price offered by the Russian-Turkish consortium is attributed to the fact that it was the sole bidder, the government may lower the price through heavy bargaining. However, the government may not be eager to engage in bargaining as it has already rejected the consortium's offer to revise its price.
The Chamber of Electrical Engineers (EMO) and the Anti-Nuclear Platform have challenged the tender legally, and this may serve as a complicating factor in the Cabinet's decision-making process for the tender.
Another factor is the global financial crisis. Before the tender was made, many companies had complained about the crisis and demanded the tender be postponed. The crisis is also listed as a factor that pushed up the figure of the price offered.
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