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Friday, May 14, 2010     GET REAL

Russia to build, own first nuclear power plant for 'strategic partner' Turkey

ANKARA — Russia was said to have signed an agreement to build the first nuclear power plant in Turkey.

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The agreement, with a potential value of $20 billion, was signed on May 12 during the visit to Turkey by Russian President Dmitry Medvedev. In the first stage of the agreement, Russia's state-owned Atomstroyexport would be contracted to build a 1,200 megawatt nuclear energy reactor at Akuyu along the Mediterranean Sea.

"This agreement opens a new page in our cooperation," Medvedev said. "Turkey and Russia are strategic partners not only in words but in deeds."


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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."



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