By Thomas Grove and Orhan Coskun
ISTANBUL/ANKARA, Sept 26 (Reuters) – Turkey has a difficult decision ahead as it ponders if it can afford to reject the single bid it received in a long-delayed $7.5 billion nuclear tender at a time when global liquidity is drying up.
A consortium led by Russian-based Atomstroyexport was the single bidder on Wednesday in the tender to construct and operate the first of three planned nuclear power plants.
The plants are a cornerstone of the Turkish government’s policy to cut dependence on imports and address power consumption demand, seen rising at eight percent a year.
But doubts the tender will go ahead have mounted as analysts say the government will want a broader range of options beyond a single offer, and Atomstroyexport’s plan is considered expensive for the technology on offer.
Analysts also have pointed out that the Russian-based company’s construction of the plant undermines Ankara’s energy policy of limiting its dependence on Russia, which already provides more than 60 percent of Turkey’s gas imports.
“The fact the tender came at the moment of the latest global financial crisis really weighed on the process. If a competitive second bid had come in it would have been much better,” said a senior Turkish Energy Ministry source, who declined to be named.
Business Feed Article | Business | guardian.co.uk.
Leave a Reply