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Wednesday, October 15, 2008

Only Russia makes offer on Turkey'a $1.5 billion reactor project

ANKARA — Turkey's plan to construct its first nuclear energy reactor appears near collapse.

Officials said the Turkish Energy Ministry has been disappointed with the response to its invitation to companies to build the nation's first nuclear energy reactor. They said only one company has submitted a formal bid for the estimated $1.5 billion project, which set nine criteria.

"The tender was an abject failure," Turkish energy analyst Haluk Direskeneli said.

Officials said 13 companies submitted an application for a request for information, RfI. In September 2008, only one company, Russia's Atostroyexport, submitted an offer.

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On Sept. 24, six Turkish and foreign companies submitted closed envelopes to the Turkish Electricity Trading & Contracting Inc., which managed the tender. They were identified as Atostroyexport, AECL Atomic Energy Of Canada, the French-Belgian Suez Tractebel, the Dutch Unit Investment, as well as Turkey's Hattat Holding-Hema Ortak Girisim Grubu and Ak Enerji.

Only Atostroyexport submitted an offer for the construction and operation of Turkey's first nuclear power plant at Akkuyu region of the southern province of Mersin. Atostroyexport has been teamed with Russia's Inter Rao and Turkey's Park Teknik.

Atostroyexport's offer would be assessed by Turkey's Atomic Energy Agency. Officials said the agency would then decide whether to submit the offer to the Council of Ministers.

"We talked nearly with all of companies," Atomic Energy Agency president Okay Cakiroglu said. "They could not tell us just how much time was necessary."

Officials said the sole bid could torpedo the tender. This has been Ankara's fourth tender for its nuclear energy project.

In wake of the tender results, the president of the Atomic Energy Agency announced his resignation. Cakiroglu said his resignation was not connected to the tender.

"If I handed my demand in before the tender offers were made public Sept. 24, there could have been some doubts," Cakiroglu said. "But at this time there is nothing to be suspicious about."

Analysts said Atostroyexport's offer would encounter opposition within the Energy Ministry, already accused of mishandling the tender. They said the Russian company built flawed industrial plants in Turkey's Iskenderun and Orhaneli.

"I believe the tender will fail," Necdet Pamir, a senior analyst at the Eurasian Strategic Research Center, said. "The government cannot take the risk of handing the tender to Russians, not after voicing doubts about that country's technology."


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