Rosatom replaces general contractor on Turkish nuclear plant, work continues on schedule
MOSCOW. Aug 2 (Interfax) - The management of the Akkuyu Nuclear Power Plant project in Turkey has decided to reshuffle the participants in construction work, project company JSC Akkuyu Nuclear, which is 99.2% owned by Russian state company Rosatom, said in a press release.
The contract with IC Ictas Insaat Sanayi ve Ticaret A.S. has been terminated, and a contract has been signed with another Turkish company, TSM Enerji Insaat Sanayi Limited Sirketi (TSM).
However, IC Ictas objected to the decision and plans to dispute it in London arbitration, Bloomberg reported on Monday. Rosatom has not commented on the developments.
Rosatom's Titan-2 formed a joint venture with IC Ictas in 2019 to work on the construction of the Akkuyu NPP. That same year the joint venture signed an EPC (engineering, procurement and construction) contract with JSC Akkuyu Nuclear.
Akkuyu Nuclear said that all unfinished work on current subcontracts will be handed over to TSM, which has been involved in the project to build the nuclear plant since October 2019 and has the necessary experience to carry out high-tech projects. TSM and subcontractors involved in the project will sign contracts similar to those that existed with the previous main contractor, the joint venture Titan 2 IC Ictas Insaat Anonim Sirketi.
"This ensures continuity and quality work at the construction site, compliance with Akkuyu NPP construction deadlines, and preservation of the rights of builders as regards working conditions and timely payment of wages to employees of all subcontractors," Akkuyu Nuclear said.
All work at the construction site is proceeding strictly according to schedule, the company added.
The reorganization of the participants in the project takes into account the dynamics and specifics of the current phase of work, Akkuyu Nuclear CEO Anastasia Zoteyeva said in the press release.
The level of project localization is estimated at $6.5 billion and about $3.2 billion worth of orders have already been placed with Turkish companies, she said.
Akkuyu NPP is being built by Rosatom Group on build-own-operate model. The project includes four 1,200-MW generating units with generation III+ Russian VVER reactors with improved safety and performance features.
The first concrete for unit No. 1 of the plant was poured on April 3, 2018. The first unit is scheduled to go into operation in 2023, when the Republic of Turkey marks is 100-year anniversary. The first concrete for the second unit was poured in late June 2020, construction of the third unit began on March 10, 2021 and construction of the fourth started in July 2022.