Financing of Hanhikivi-1 NPP construction project
Project will be financed through the following main sources:
- Shareholders equity for Hanhikivi-1NPP construction purposes, in accordance with the shareholders' agreement concluded between JSC REIN (ex. JSC Rusatom Overseas) and Voimaosakeyhtiö SF at the NPP startup date will amount to about 1.7 billion Euros. State Corporation Rosatom fee will amount to 600 million Euros. Equity financing is to be provided by the company's shareholders in the form of annual tranches.
- Debt financing. The total amount of debt financing of the Project would make up approximately 5 billion Euros. Key source of debt financing for the Project at the moment are resources of the Russian Federation National Welfare Fund (hereinafter – the NWF). In accordance with decree of the RF Government #2795-rs of December 30, 2014, the total amount of funding from this source will amount to 2.4 billion Euros but not exceed 150 billion Rubles. In April 2015 Fennovoima Oy has already received the first tranche from the NWF equivalent to 57.5 billion Rubles.
In addition to the NWF funding for the purposes of the Project it is planned to borrow from the following sources:
- Funding of foreign commercial banks covered by foreign export credit agencies. It is expected that this financing will be secured by the supply of foreign components for nuclear power plant construction.
Involvement of such financing is stipulated in the contract for the supply of turbine generator units for Hanhikivi-1 NPP signed on July 28, 2016 by the General Contractor for construction of the NPP – RAOS Project Oy and Alstom Power Systems (owned by General Electric). For the first time in Rosatom project financing of the equipment purchase is provided by the turbine generator unit supplier and is fully consistent with the recommendations of the Organization for Economic Cooperation and Development (OECD).
- Funds of the State Corporation Bank for Development and Foreign Economic Affairs, part of which may be provided based on insurance by Export Insurance Agency of Russia EXIAR.
- Funds of both Russian and foreign commercial banks to finance other works and services on the project.