The consortium of three Turkish companies includes 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.). It will acquire a 49% share in Akkuyu Nükleer A.Ş. established in Turkey to carry out the Akkuyu project. One of the consortium companies, Cengiz İnşaat Sanayi ve Ticaret A.Ş., is already engaged in the Akkuyu project as a contractor for buildng the turnkey construction of offshore hydraulic structures. According to the agreement signed by Russia and Turkey in 2010, Russian companies should hold at least a 51% share in the project operator.
The amount of the deal will not be disclosed until the shareholder agreement is signed by the parties. The signing is expected to take place before the end of 2017. The signed agreement provides the possibility of attracting the necessary volumes of borrowed financing. The stake acquisition will be the first ever external investment in a nuclear BOO (build – own – operate) project worldwide.
This is the world’s largest private investment in nuclear energy for the past 17 years. The Turkish companies joining Akkuyu project have extensive experience in construction and operation of energy facilities in the Republic of Turkey, including BOO projects.
“These Turkish companies are well-known and active on both construction and power markets. This is a truly remarkable event, since it will be the largest private investment into a Russian project abroad and, perhaps, into any nuclear project worldwide for the last several years. The deal will benefit not only the project itself, but also the public acceptance of nuclear power, which is one of the key topics at ATOMEXPO. It is very important for us to have a partner that has such a good understanding of both construction and power markets in Turkey. These companies have extensive expertise and a great deal of finished projects, which were non-nuclear – because Turkey’s first nuclear power plant is yet to be built – but focused on construction and operation of power generation capacities in the country. We are sure that the cooperation with such reliable partners will add to the efficiency of our project.” said Kirill Komarov, Rosatom’s First Deputy CEO for Corporate Development and International Business.
FOR REFERENCE
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 it 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”). On June 15, 2017, the Turkish Energy Market Regulatory Authority issued to JSC AKKUYU NUCLEAR a license to generate electricity valid until 2066. The main construction license is expected to be received in 2018.
