– Kazakhstan is Russia’s long-standing partner in nuclear energy. What new challenges will Rosatom’s office in Central Asia address?
– Rosatom Central Asia will strengthen existing relations in the civil nuclear industry and find new business development opportunities for the state nuclear corporation [Rosatom]. Kazakhstan is implementing a national program on innovative industrial development in 2015–2019. The program is an integral component of Kazakhstan’s industrial policy promoting the development of national processing industries with a focus on six priority segments: metals, chemicals, petrochemicals, mechanical engineering, construction and food processing. This is a perfect opportunity for Rosatom to find new, non-nuclear points of contact and contribute to the industrial development of Kazakhstan and the entire region, which is within our responsibility and includes Kyrgyzstan, Uzbekistan, Tajikistan, Turkmenistan and Mongolia.
– What do you think about doing business in Kazakhstan?
Kazakhstan is going through the time of positive changes and public reforms. Doing business in this country has become more transparent than it was five or seven years ago. The latest developments bring in more confidence and safety of investments. For several years in a row, experts have recognized Kazakhstan as the best investment destination in Central Asia. To do business in Kazakhstan and take part in government projects, one should know local public procurement procedures. At present, no Rosatom Group company is registered in Kazakhstan as a non-resident supplier. Our task is to help Rosatom’s subsidiaries in this important issue. Far more important is to build long-term relations with local companies and achieve synergy when doing business in Kazakhstan. In other words, we should join to win new sales markets.
– The key question for Rosatom is whether it will build a nuclear station there. Is there any clarity on this point? What technology is negotiated?
– Construction of a nuclear power plant in Kazakhstan has long been on the agenda. There is a shortage of generation capacity in some parts of the country, and much hope is pinned on nuclear power as a solution to the problem. Erlan Batyrbekov, General Director of the National Nuclear Center in Kazakhstan, once said that the East Kazakhstan Region would face a shortage of more than 1 Gigawatt of electric power in 10 years and 2.8 Gigawatts in 15–20 years. This shortage can hardly be covered by solar power or cogeneration. A nuclear power plant for energy-deficient Kazakhstan is the only solution that will bring the country to a new level and make it a developed industrial economy. Work is ongoing to finalize an agreement for the nuclear plant construction. Russia has already approved the wording, and we are waiting now for the approval by Kazakhstan authorities to enter the signing phase. A memorandum of understanding and cooperation in the nuclear plant construction was signed last May in Astana. The document provides for the construction of a nuclear station with pressurized water reactors with installed capacity ranging from 300 to 1,200 MW. The memorandum also contains bilateral intentions of the parties to work together in nuclear fuel supplies and manufacture nuclear fuel (or its components) in Kazakhstan. At a meeting between the presidents of Russia and Kazakhstan, Nursultan Nazarbaev confirmed the plans to build a Russian-designed nuclear station in the country. Rosatom is ready to offer Kazakhstan a Generation 3+ (post-Fukushima) nuclear plant design that incorporates all the IAEA safety requirements. The same-design nuclear stations are in operation or under construction in Russia (Novovoronezh-2 and Rostov NPP). It means that our customers can take a look at how they work and what economic benefits they bring. Those countries that do not have nuclear stations are offered a ‘turnkey’ solution – EPC, fresh nuclear fuel supplies, 50% to 70% of local procurement, financial assistance, assistance in the development of regulatory framework, spent nuclear fuel and radioactive waste management solutions, professional staff training, public awareness events and stakeholder engagement. If required, Rosatom also offers a standardized desalination plant integrated with VVER-1000 or VVER-1200 reactors.
– Another issue on the table is shipment of small hydropower generating systems to the local market. What are the sales prospects for the small hydro technology?
– The sales prospects are attractive. Containerized small hydropower plants equipped with a turbine pump make efficient use of natural water sources. This is an extremely interesting solution for Southern Kazakhstan with its mountainous terrain, a plenty of rivers and a shortage of electric power. Almaty officials have taken much interest in small hydropower plants. This solution can also be very interesting for South Kazakhstan, East Kazakhstan and Zhambyl regions. Generally, Kazakhstan has created favorable conditions for the development of renewable energy. Projects in this field are supported by the Government, which has adopted a renewable energy action plan and a green economy transition policy.
– Your regional office first focuses on Kazakhstan where the local situation is more or less clear. What specifics or challenges are there in other Central Asian countries?
– Despite cultural and mental resemblance, each Central Asian country needs a customized approach. Business practices are different in each country, and so are laws and regulations protecting businesses. There are communication barriers, especially in Uzbekistan and Turkmenistan. For example, Turkmenistan restricts Internet access; its security agency controls emails and phone calls; currency restrictions are also in place. As a result, companies have to work from Dubai or Istanbul. Whatever the challenges, Turkmenistan shows enormous potential for Rosatom to develop such businesses as petrochemicals and nuclear medicine. Ashgabat, the capital of Turkmenistan, features cutting-edge medical facilities. The national government sets the bar high for medical equipment and procures the best medical devices available on the market. In other words, we have an attractive offer for this country, as well as for other Central Asian markets.
