Turkish companies are part of the JSC AKKUYU NUCLEAR shareholders
In Moscow, within the framework of the IX International Atomic Energy Forum ATOMEXPO, an agreement was signed on the main conditions for the entry of Turkish companies into the shareholders of the project company JSC AKKUYU NUCLEAR, which will build and operate the first nuclear power plant in Turkey.
Rosatom State Corporation adopted a decision to introduce into the project a consortium of Turkish companies, which included Jengiz Holding (Cengiz Holding A.Ş.), Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş. and JSC "Kalyon İnşaat" (Kalyon İnşaat Sanayi ve Ticaret A.Ş.). The amount of the transaction is not disclosed until the signing of the Investment Agreement (Shareholders Agreement), which is expected before the end of 2017. As a result, the authorized capital will be formed in the amount sufficient for the implementation of the project. The signed agreement provides the possibility of attracting the necessary volumes of borrowed financing and will be the first in the world practice of external investments in nuclear power projects of BOO type ("build-own-operate").
The consortium will acquire a 49% stake in JSC AKKUYU NUCLEAR (AKKUYU NÜKLEER ANONİM ŞİRKETİ), which was established in Turkey to implement the Akkuyu nuclear power plant project. According to the intergovernmental agreement signed in 2010, at least 51% of shares should belong to Russian companies.
This is the largest investment of foreign companies in the projects of the Russian Federation, which are being implemented beyoond Rusia’s boarders, and the world's largest private investment in nuclear energy for the past 17 years. Turkish companies that are part of the Akkuyu nuclear power plant project have extensive experience in the construction and operation of energy facilities in the Republic of Turkey, including “build-own-operate” projects, which increase the efficiency of the project and contribute to the achievement of its strategic goals.
The combination of such strong shareholders will lead to a great synergetic effect in the implementation of the Akkuyu nuclear power plant project. Companies of the Turkish consortium are the leading sellers and distribution holdings in the Turkish electricity market. They occupy approximately 30% of the wholesale electricity market. The consortium plans to take an active part in the construction of the nuclear power plant, in the management of the project company AKKUYU NUCLEAR and in attracting the necessary loan financing. One of the consortium companies, Cengiz Holding A.Ş., is already participating in the Akkuyu nuclear power plant project as a contractor for the turnkey construction of offshore hydraulic structures.
On the composition of the Turkish consortium:
Jengiz Holding JSC (Cengiz Holding A.Ş.) founded in 1969 is one of the largest construction, mining and industrial holdings in Turkey, and has implemented projects in the field of traditional energy, including the BOO projects. The total value of the completed projects of the holding is 8.12 billion US dollars, current projects – 14.5 billion US dollars. The operation of the energy division of the holding began in 1998. The total installed capacity is 2,131 MW including hydro, thermal and solar. The total capacity of the projects under implementation is 2,811 MW. For more than 10 years the holding is listed in ENR "250 Top International Contractors" rating.
Kolin İnşaat Turizm Sanayi ve Ticaret A. Ş.) is one of the largest construction and industrial holdings in Turkey with experience in implementing projects in the field of construction of industrial, generatiing and infrastructure facilities. It was founded in 1977. The total cost of completed projects is $5.8 billion, current projects - $13.5 billion. In 2016, the holding was at 230th place in the ENR "250 Top International Contractors" rating. Kolin's total power generation asset base is 1150 MW (640 MW operating hydro and 510 MW lignite under construction).
Kalyon İnşaat JSC (Kalyon İnşaat Sanayi ve Ticaret A.Ş.) is one of the largest construction and industrial holdings in Turkey, founded in 1974. Currently he works in many countries: Russia, Libya, UAE, Saudi Arabia, Iraq, Qatar. As part of the Holding, companies that own hydroelectric power plants of river type with an installed capacity of more than 100 MW, and enterprises for activities in the sale and distribution of natural gas.
About the Akkuyu NPP Construction Project:
The Intergovernmental Agreement on cooperation between Russia and Turkey in the construction and operation of the first Turkish nuclear power plant on the Akkuyu site in Mersin province in southern Turkey was signed in 2010. The Akkuyu nuclear power plant project consists of four power units with Russian Generation III+ WWER reactors incorporating safety features for all scenarios. The capacity of each NPP power unit will be 1200 MW. The total cost of the project is about 20 billion US dollars.
The Akkuyu nuclear power plant is the world's first nuclear power plant project, implemented on the BOO model ("build-own-operate").
More than 250 Turkish students are being trained at Russian universities in the area of "Nuclear Power Plants: Design, Operation and Engineering".
On October 13, 2011 TAEK (Turkish Atomic Energy Agency, the regulatory agency of the Republic of Turkey) granted a valid license for the site to JSC ACKUYU NUCLEAR, and in November 2013, adopted the Ground Report on the site, performed by JSC AKKUYU NUCLEAR within the terms of the Site License valid for the construction of the Akkuyu Nuclear Power Plant.
On December 1, 2014 The Ministry of Environment and Urban Development of the Republic of Turkey approved the report on environmental impact assessment (EIA) of the Akkuyu NPP project prepared by JSC AKKUYU NUCLEAR.
On June 29, 2015 JSC AKKUYU NUCLEAR and Turkish company "Cengiz Holding" signed a contract for the design and construction of marine hydraulic structures of the Akkuyu nuclear power plant.
On February 9, 2017 TAEK approved the design parameters of the Akkuyu nuclear power plant construction site.
On June 15, 2017 the Turkish Energy Market Regulatory Authority issued to JSC AKKUYU NUCLEAR a license to generate electricity valid until 2066.
On March 3, 2017 the Turkish Atomic Energy Agency received an application for a construction license prepared by JSC AKKUYU NUCLEAR, which allows the Turkish side to issue a limited building permit in 2017. Obtaining a limited permit makes it possible to proceed with the construction of a "non-nuclear" part of the nuclear power plant.
The main construction license is expected to be received in 2018. According to the Intergovernmental Agreement, the commissioning of the first power unit must take place no later than 7 years after the issuance of all construction permits by the Republic of Turkey.