Nuclear Inter Jura 2014
ROSATOM
Rosatom State Nuclear Corporation
Legal aspects of the BOO model
when developing new nuclear
power plant and construction
projects
Ilya Smirnov,
Deputy CEO, General Counsel
Olga Kirillova,
Senior Legal Counsel
21 October 2014
Akkuyu NPP Power Generation JSC
Factual background
ROSATOM
AKKUYU NGS AŞ
435 nuclear power plant units are
under operation around the world
72 nuclear power plant units are
under construction around the
world (10 units – since 2013)
Only one NPP (4 units) is under
construction under the BOO
model
2
TOPICS COVERED
AKKUYU NGS AŞ
ROSATOM
Types of project models
Akkuyu NPP project structure
Major challenges
Lessons learned
Questions
3
Newcomers
AKKUYU NGS AŞ
ROSATOM
which
way
to follow
Turkey
Bangladesh
Vietnam
Jordan
Nigeria
Belarus
Kazakhstan
Egypt
…
4
Akkuyu Nuclear Power Plant is the First Rosatom
BOO Construction Project Outside Russia
AKKUYU NGS AŞ
ROSATOM
Akkuyu Project Features
•
First Nuclear Power Plant in Turkey
•
First Rosatom ВОО (build-own-operate) project. Under the
IGA, Rosatom is responsible for engineering, construction,
operation and maintenance of the plant.
•
Legal basis: Intergovernmental Agreement, May 12, 2010
•
Project design: AES-2006 (VVER-1200)
•
Total capacity: 4,800 MW. (4 x 1200 MW)
•
Implementation period: 2011-2023
•
Total cost ~ $ 20 bln
•
Power Purchase Agreement for 15 years, fixed price terms
•
Support of the Russian and Turkish Governments
•
Maximization of Turkish personnel
construction and operation of the plant.
•
Job creation potential – up to 10 000 for the construction
only
involvement
Akkuyu site, Turkey
5
in
Project Cooperation Between Russia and Turkey
Covers a Wide Range of NPP Related Construction,
Operation and Infrastructure Issues
ROSATOM
Russian / PC responsibilities
Joint responsibilities
AKKUYU NGS AŞ
Turkish responsibilities
NPP engineering, design field
supervision
Construction and assembly
works
Site allocation
Construction management/
Supervision /Startup and Commissioning
Physical protection
Infrastructure development,
grid connection
Design documentation
Emergency planning
Nuclear island and other
special equipment and materials
Public outreach
Fuel supply
Ownership of NPP until decommission
Site infrastructure
Spent fuel management
(subject to a separate IGA to
be concluded)
Operation, maintenance and upgrade
Wholesale of electricity
Decommissioning and decontamination
Financing
Nuclear liability insurance
Radioactive waste disposal / treatment
6
Project organization structure
AKKUYU NGS AŞ
ROSATOM
Board of Directors
(shareholders)
Rosatom State Corporation
Project sponsor
PC management
General responsibility for Project
implementation
Rusatom Overseas
CJSC
Shareholder/ developer
Akkuyu NPP JSC
Tailor-made JSC incorporated in Turkey. Carries functions of customer, license
applicant, NPP owner and GR coordinator in Turkey
Operator, Owner of the NPP and electricity produced
Owner’s Engineer*
•
•
•
•
Technical expertise
Cost control
Schedule control
Quality control
OJSC «INTERRAO
Worley Parsons»
Rosenergoatom Concern OJSC
Technical customer
Licensing consultant
•
•
EPC 1**
Hydrotechnical
* Tender will be tentatively run in 2014
** EPC structure to be further discussed
EPC 2**
Nuclear island
EPC 3**
Turbine island
Development of technical assignment for the design
documentation
Technical acceptance of equipment and services at all
stages of project commissioning, NPP operation
EPC 4**
Auxiliary buildings
7
Equity Structure
AKKUYU NGS AŞ
ROSATOM
Paid Capital – 4.36 Billion TL (source – Russian budget)
Current
Shareholders
of AKKUYU
NPP JSC
Subject to
consent to the
Turkish Party
under IGA
8
Stages of the project
Single responsibility of the “Project company” for all stages of the
project and deadlines
1 stage
2 stage
Preparation
Construction
3 stage
O&M
4 stage
Decom
missio
ning
13/12/10
2017
Akkuyu NPP
JSC
registration
03/11
1st concrete
2083
2017
Start site Construction
survey
license,
Electricity
generation
license
Commissioning
2023 – 1 unit
2024 – 2 unit
2025 – 3 unit
2026 – 4 unit
9
Lessons learned: Regulatory
The comprehensive
Nuclear Energy law
and the Law of Civil
Liability for Nuclear
Damage need to be
adopted
Challenges in
understanding of
local regulations and
their implementation
Possibility of
changes in
regulations without
consent of NPP
owner
No experience of the
Turkish Party in
regulating and
licensing of NPP
New electricity law
market
Lack of
understanding of
“nuclear” by
government
agencies and
companies
challenges
Public fear of
nuclear
10
Lessons learned: Regulatory
Setting up regulatory base
prior to licensing
Acceptance of the
regulatory base of the
supplier country in case of
lack of host country base
Established effective
system of consultations with
government bodies and
relevant agencies
Working groups on the key
issues of project
implementation and NPP
operation
INIR mission to Turkey
(November 2013)
Work with public opinion
Student’s education,
training for officials,
regulatory bodies’
personnel
Assistance in development
of regulatory basis and
regulatory agency expertise
SOLUTIONS
11
Lessons learned: Host Country Undertakings
Challenges
No responsibility of the
host country for
Meeting deadlines
in decision making
which may lead to
schedule delays
Cost overruns in
case of delayed
construction
Issues touched upon
by the IGA but
referred to separate
IGA’s that may be
concluded in the
future
Cooperation
regarding the
nuclear fuel cycle
Reprocessing
spent fuel of
Russian origin in
the RF
12
Lessons learned: Host Country Undertakings
Setting forth the
financial responsibility
of the host country for
ensuring infrastructure
solutions (INIR)
Local government
owned companies
among equity partners
Country guarantees to
purchase fixed amount
of electricity at a predetermined price
Alternative to treasure
guarantees – entering
into a Host
Government
Agreement
Negotiating follow up
IGA’s or Host
Government
Agreements
13
Lessons learned: Amending local laws
IGA
Local
laws
14
Strategy of Operating the NPP
Open Issues
ROSATOM
Option
AKKUYU NGS AŞ
Challenges and Limitations
1: Who is employed at the NPP?
1.1. 100% Akkuyu staff
1.2. Own operating staff, outsourced
supporting staff
1. Development and implementation of
business processes
2. Language of operation (initially Russian)
vs language of examination for licensed
operators (???)
3. Recognition of diplomas and
engineering qualification
4. Licensing in Turkey of the personnel
educated in Russia
2: Who provides outsourced services?
2.1. Concern Rosenergoatom
2.2. Foreign provider
1. Contract to provide operating services
2. Authorization by TAEK
3. Liability (incl. nuclear) of the service
provider
4. Requirements of TAEK to be
developed
15
Strategy of Operating the NPP
In-house vs. Outsource
ROSATOM
AKKUYU NGS AŞ
Own Operating Personnel
Outsourced Services (while retaining knowledgeable customer
capability):
Physical Protection (except for own Security Service)
Administrative and supporting functions
Repair and maintenance work, replacement of spent fuel
Transportation logistics
Retail sale of electricity
Rad waste management
Training of personnel
Metrology and monitoring
16
HR Strategy
General Considerations
ROSATOM
General
Considerations
Staffing:
1.
2.
3.
4.
5.
AKKUYU NGS AŞ
Safety
Quality
Economic Efficiency
Industry benchmarking
Availability of qualified local personnel in
Turkey
1. Deputy CEO for Operations (new
open position introduced into the
org.structure)
2. His direct reports:
• Chief Engineer
• Director for Safety and Quality
Control – dotted line reporting to the
CEO
17
HR Strategy
Open Issues
ROSATOM
Local staff vs Expats?
Development of
specialized higher
education in TR vs
training at the Akkuyu
Training Center
AKKUYU NGS AŞ
1. What is the optimal headcount of the
NPP (currently 0.8 person per 1 Mwt)?
2. Where shall we hire people from?
3. How Much – Where – When: What
level of personnel localization in different
categories of employees can (should) be
achieved at the initial phase, in 5 years
and in 10 years?
1. Program of training of licensed
personnel (required for application to
TAEK for the construction license –
burning issue for Q1 2015)
18
AKKUYU NGS AŞ
ROSATOM
AKKUYU NGS AŞ
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