Russia and Turkey announced the signing of nearly 20 cooperation
agreements that Medvedev said would generate $25 billion in investment, Middle East Newsline reported.
Russian officials said the nuclear component could reach between $18 and $20
billion.
"This is a very big contract," Sergei Kiriyenko, director of Russia's
state-owned nuclear agency Rosatom, said. "This will be the first case in
which Russia not only builds a power plant, as we have in Iran and India,
but will also own it."
Kiriyenko said the Turkish government would be obligated to provide a
site for the nuclear reactors as well as guaranteed electricity sales at a
fixed price.
"For Turkey, which is just starting to develop nuclear energy, this is a
smart move," Kiriyenko said.
In the project's second phase, officials said, Atomstroyexport would
build a second nuclear plant. The Russian contractor would be given
the option to complete another two facilities, with the capacity to generate
1,200 megawatts each.
Turkish Prime Minister Recep Erdogan confirmed the Russian accord to
build a nuclear reactor under the so-called build-own-and operate model.
Erdogan said the construction of the Akuyu facility would take seven years.
The agreement, which would require parliamentary approval, was signed
less than six months after the Turkish government canceled a tender to build
the Akuyu reactor. A state panel had determined that the price submitted by
Atomstroyexport to generate nuclear-powered electricty was too high.
Atomstroyexport was the only bidder in the tender.
"If we add dependency on nuclear energy on top of the current energy
trading from Russia, it's inevitable that we get concerned," Turkish energy
analyst Necdet Pamir said.
For his part, Kiriyenko said Atomstroyexport would own all of Turkey's
nuclear power plants, with Ankara not obligated to make any initial
investment. He said the company would have the option to sell up to 49
percent of its stake to investors.
"Turkish investors are interested," Kiriyenko said. "We're also holding
talks with European investors."