Alexander Superfin, Chief Executive Officer of Akkuyu NPP, spoke at ATOMEXPO 2012 Forum




 

06.06.2011

 

The round table «Investment Potential of Nuclear Energy: Integrated Approach to Attract Financing» has put together representatives of the largest world companies and the nuclear industry enterprises.

 

Mr. Kirill Komarov, Deputy Director General of the State Atomic Energy Corporation Rosatom for Development and International Business, gave a report «Funding projects of the Russian-design NPP construction abroad». According to him, «the State Corporation is now actively working on 41 power units of the NPPs, and in the nearest future negotiations about another 37 units can be initiated». If earlier Rosatom mainly operated by using the State export credits, now it sets a goal to diversify sources of financing.

 

sts an integrated proposal, in other words, the full package of services. The main struggle is in progress for markets of the developing countries, and the most critical here is ability of a participant to arrange funding of a project and provide a comprehensive approach. Despite restrictions and specificity of funding the nuclear industry projects, practices of attracting investment resources are burgeoning. For instance, Olkiluoto 3 NPP (Finland) – guarantee of the following State export credit agencies: COFACE (France), SEK (Sweden) in the amount of 710 mln. Euros. Ninh Thuan NPP (Vietnam) – guarantee in the amount of US$ 9.8 bln., Tianwan NPP (China) – guarantee of the French COFACE in the amount of US$ 3.2 bln.

 

«Rosatom has an extensive experience in the NPP construction abroad with financial and investment support of the State. Given the Customer’s requirements for localization, limitation of the direct debt burden increase, the task for diversification of project funding becomes the first priority one. The State support allows Rosatom creating a basis for further financial project structuring. To resolve this task Rosatom is working with international export credit agencies, forming international partnerships and alliances, taking into consideration access to the financial resources when contacting vendors and contractors.

 

Special attention at the round table has been paid to the NPP construction project, implementation of which has already started.

 

Mr. Alexander Superfin, Chief Executive Officer of AKKUYU NPP, told about outcomes of a-year-and-a-half efforts to implement the Turkish NPP construction project. Akkuyu NPP will be the first NPP in the world built on the BOO (Build – Own – Operate) principle. Such scheme has been applied for thermal generation but never for the NPP construction. «Turkey is one of the most fast-paced countries in the world with a great potential for growth. – said Alexander Superfin. – It ranks 16th in the world with respect to GDP level and 4th in the world with respect to GDP dynamics. Its plans to enter the top 10 of the biggest developed countries will require 8% power growth per year». The existing capacities will be insufficient by 2013 and even the plans to build new capacities will not suffice the power deficiency. But the power prices in Turkey are growing due to the market liberalization. The wholesale prices are already exceeding the average ones for Europe. The congenial investment climate encourages investments into the energy industry of Turkey. Akkuyu NPP JSC is ready to suggest up to 49% of shares to potential investors. Now the negotiations are underway with some largest international and Russian banks regarding cooperation under the project. The more energetic work with investors begins after 2013, when the NPP construction begins. Alexander Superfin marked that the outcomes of the analytical model of Akkuyu NPP provides 17 years as a payoff period. The Project is being implemented under the Intergovernmental Agreement, and the Project Company has been created и registered in Turkey. In 2011 the first asset contribution in the amount of US$ 700 mln. to implement the Project has been transferred from the RF Federal Budget.
Representatives of the following companies spoke during the round table: EDF, KPMG, Oliver Wyman, Standard & Poor’s, Fitch Ratings, EKSAR OJSC. In their reports they addressed the structure of financing acceptable for construction of large energy facilities as well as prospects of using in Russian and international practice instruments of the loan capital markets, state credits and guarantees.

Press Service of AKKUYU NPP.