“We continue our cooperation in the sphere of nuclear power engineering, we discussed current situation. We believe that we will soon come to the conclusion of the general framework agreement to place the stage-by-stage schedule of the project implementation”, noted Medvedev.
It is expected that this year Vietnam will sign the contract on creation of a free trade zone with the countries of the Eurasian Economic Union — Russia, Belarus, Kazakhstan and Armenia. This will significantly facilitate equipment delivery to the future NPP. As Medvedev noted, negotiations are already in the home stretch. “We have agreed practically in all respects, coordinated all essential issues”, — Medvedev told journalists after negotiations.
Waiting for contracts
Russia and Vietnam agreed in 2011 on construction of Ninh Thuan NPP-1. Russia agreed to provide an $8 billion government-backed loan. The whole project was estimated at $10 billion.
The first Vietnam NPP construction project assumes construction of power units 1 and 2 with VVER-1000 or VVER-1200 reactors (the final choice has not been made yet). Students from Vietnam are being trained in Russia to engineering specialties within the project implementation.
Works on development of the feasibility report of the project and justification of the Vietnam NPP site have already come to the end. All final project materials were transferred to the Vietnam partners in October last year and are now being reviewed by the customer.
“At the end of 2015 we expect signing of the first contracts. The Vietnam party is currently reviewing the feasibility report”, reported Nikolai Drozdov, the international business department director of Rosatom at the end of last year during the forum of nuclear industry suppliers “Atomex–Asia”.
The intergovernmental agreement also assumes creation of the Center for Nuclear Science and Technology in Vietnam. The nuclear institute is now operating near the city of Da Lat, where DNRR research reactor of 500 kW (thermal) power is installed. The institute and the reactor shall be closed in approximately 10 years, and the new Center for Nuclear Science and Technology will come to their position. It is planned that 15 MW research reactor (thermal) will be built in the new Center. The cost of the center is estimated at $500 million. The Vietnam party expects to obtain the Russian loan for this project.
The preliminary siting for the new Center was performed in January 2013. However, the national committee (local government authority) of Da Lat city declared against it and offered alternative sites at a distance of up to 40 km from the city. The question of the new center location has been taken to the level of parliament and government of the country. Until now, the ministry and the local government body of Da Lat city could not reach a compromise.
Maximum localization
NPP construction in Vietnam will be localized to the maximum. First of all, it is referred to equipment manufacturing and construction works. Nikolai Drozdov, director of the international business department of Rosatom also reported about it during the “Atomex-Asia” forum.
“We actively hold negotiations on involvement in our projects of the local industry, first of all the construction industry,” he said. “According to the expert analysis and in comparison with our projects in India and China the level of localization can achieve 30-40%”.
The compelling stand of Rosatom is to apply no restrictions for the local business and the local industry. Equipment of the so-called “nuclear island” will be manufactured at Rosatom enterprises, but it makes only about 20-25% of the plant cost.
“Vietnam industry has to be ready technically and the Vietnam business has to be interested in these projects. When these two issues are resolved, local companies will be able to take active part in the NPP construction program,” believes Rosatom representative. “Respectively, the sooner the works commence on the site, the sooner we will be able to involve the Vietnam experts in this project”.
