Turkish Forum

Tag: Toshiba

  • S. KOREA’S REACTOR DEAL WITH TURKEY HITS SNAG

    S. KOREA’S REACTOR DEAL WITH TURKEY HITS SNAG

    SEOUL, Nov 16, 2010 (AsiaPulse via COMTEX) —

    South Korea’s plan to export nuclear reactors to Turkey has hit a stumbling block as both sides failed to conclude an agreement due to differences over the proper level of power prices.

    Sources at the Ministry of Knowledge Economy and state-run Korea Electric Power Corp. (KEPCO) said Monday that the conclusion of the deal has been delayed after marathon discussions failed to find middle ground on how to establish fair electricity prices.

    After starting negotiations early this year, the two sides wanted to sign the intergovernmental agreement (IGA) to build the Sinop atomic power plant on the Black Sea coast during last week’s G-20 summit held in Seoul. However, they only reached an understanding to pursue more negotiations as soon as possible to iron out outstanding differences.

    The Sinop project involves the building of four 1,400-megawatt reactors at a cost of around US$20 billion. South Korea has proposed using its APR-1400 reactors that will be used for a nuclear power plant in the United Arab Emirates (UAE).

    Moon Jae-do, head of the ministry’s resources development office, said there were lingering differences on how to ensure an adequate return on investment over an extended period of time.

    “The deal with Turkey involves KEPCO and its Turkish partner setting up a joint company to arrange financing, construction and sharing of earnings through a power purchase agreement once the reactors are built,” he said. Seoul and Turkey could foot up to 30 percent of the cost with international project financing to pay for the rest.

    Without going into details, the official said the two sides have not been able to see eye-to-eye on how to calculate earnings, although Turkey is carefully examining a undisclosed “improved” proposal forwarded by Seoul to break the impasse.

    In addition, Seoul has said that the Turkish government must be the largest shareholder in the company.

    Other government officials said Seoul “naturally” wants to receive more for electricity produced since large sums of money have to go into the construction, while Turkey wants to keep prices low to benefit its users.

    “For Seoul, there is a critical need to show the public and parliament that the deal is commercially viable and would not become a burden on state-run KEPCO down the road,” said an official who declined to be identified.

    He added that despite the inability to sign the IGA deal during summit talks held on Saturday between South Korean President Lee Myung-bak and Prime Minister Recep Tayyip Erdogan, this setback does not mean Seoul has lost the bid altogether.

    The official pointed out that the two sides have engaged in long-drawn talks since March and pledged to carry out related cooperative efforts.

    “Even under the initial plan, a formal deal is scheduled to be signed in the first half of 2011, with more detailed plans to be set in the second half of the year,” he said, hinting that there is no real need to rush this matter. This blueprint calls for actual construction of the first Turkish reactor to begin around 2012.

    Related to lack of headway, Turkey’s media reported that Ankara’s energy minister has invited Japanese industrial giant Toshiba for talks on building the Sinop plants.

    It said Turkish Energy Minister Taner Yildiz wanted to engage in speedy negotiation processes with other countries that may be interested in the nuclear power plant deal. He said U.S. and European companies may be considered so the country can have at least two nuclear power plants in operation by 2023.

    Local market experts, meanwhile, said the failure to sign the IGA over the weekend would not have any effect on local industries.

    “There were some differences on power purchasing prices and what to do if there is an emergency situation, but this is not seen as a complete failure since the countries have already made considerable headway on related research and development,” said Jeong Min-kyu, an analyst at IBK Investment and Securities.

    Although the setback may raise concerns that KEPCO and related companies may lose the deal, it is still more likely that South Korean businesses will nab the deal compared to foreign rivals, he said.

    The expert added that speculation that Lithuania, Finland and Malaysia are interested in South Korean reactors is good news for the industry as a whole.

    If Seoul signs the Turkish deal, it will be the second export contract following the UAE deal reached in late 2009.

    South Korea, with 20 commercial reactors in operation, is the world’s fifth-largest producer of nuclear-based electricity in the world. The country plans to build eight more reactors by 2017 with one to go on line next month.

    (Yonhap) cg

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    via S. KOREA’S REACTOR DEAL WITH TURKEY HITS SNAG | TradingMarkets.com.

  • Turkey courts Japan after failure of nuclear talks with South Korea

    Turkey courts Japan after failure of nuclear talks with South Korea

    Istanbul – Turkey is seeking a new partner in the construction of a nuclear power plant on the Black Sea coast after talks with South Korea broke down, Turkey’s Energy Minister Taner Yildiz said Monday.

    Turkey was now looking to start talks with Japan after balking at the conditions set out by South Korea for the construction of the plant, Anadolu news agency quoted Yildiz as saying.

    The talks had stumbled on several issues – not only price, she was further quoted as saying.

    Turkey plans to build two nuclear power plants to meet its soaring energy needs.

    The plant that was discussed with South Korea – the second in the pipeline – is to be built near Sinop on the Black Sea coast by 2023.

    Russian firms won the contract to build the country’s first nuclear plant at Akkuyu on the Mediterranean Sea.

    That project, which will consist of four reactors with a total capacity of 4,800 megawatts, is estimated to cost 15 billion euros (20.5 billion dollars) and be completed by 2020.

    The plant has caused controversy, partly because it would be situated in an area prone to earthquakes, but also because Turkey’s plans for the disposal of nuclear waste from the plant are sketchy.

    via Turkey courts Japan after failure of nuclear talks with South Korea – Monsters and Critics.

  • Korea-Turkey nuclear plant talks hit snag

    Korea-Turkey nuclear plant talks hit snag

    By Kim Tong-hyung

    Turkey will start talks with Japanese industrial giant Toshiba over its plans to build a nuclear power plant on its Black Sea coast after negotiations with South Korea hit a snag over money.

    Korea’s state-run Korea Electric Power Corp. had reached a preliminary agreement with Turkish state power company EUAS in March to jointly bid for the contract to build the northern Turkey power plant, which is to be completed by 2019 and estimated to be worth about $20 billion.

    However, the conflict over the plant’s price tag appears to be a significant issue, with Korean President Lee Myung-bak and Turkish Prime Minister Recep Tayyip Erdogan ending their summit in Seoul Saturday without a deal in place.

    Although the Ministry of Knowledge Economy insists that the pause in the talks is just a speed bump and says that the talks will resume as soon as possible. However, Turkish Energy Minister Taner Yildiz commenting about inviting Toshiba to the picture shows that the country is open about exploring other options, which would give them better leverage in the talks with Korea at the least.

    Yildiz said the talks with Korea had snagged on issues concerning financial terms, treasury guarantees and the distribution of shares in the planned company that would build and operate the plant.

    “Turkey has agreed to consider some additional and renewed offers presented by us in the recent negotiations. We believe that the negotiations will resume quickly and the countries will be inking a deal soon enough,’’ said an official from the ministry’s nuclear-energy development division.

    “The contract has to include financial terms related to the plant construction as well as electricity sales price.’’

    Korea has been accelerating its attempt to strengthen its position in an expanding market for nuclear-plant construction and operation. The country currently has 20 nuclear-power plants, which provide around 40 percent of the country’s electricity needs.

    In December last year, a team of Korean firms won an $18.6 billion project to build four power-generating nuclear reactors in the United Arab Emirates, beating out rival candidates from the United States and France.

    Korea aims to secure $400 billion of contracts by 2030 as demand for nuclear plants increases. Potential deals are expected in India, Malaysia, Thailand, South Africa and Saudi Arabia.

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  • Turkey to invite Toshiba for nuclear plant talks

    Turkey to invite Toshiba for nuclear plant talks

    (AFP) – 1 day ago

    ANKARA — Turkey will invite Japanese industrial giant Toshiba for talks on building a nuclear power plant after negotiations with South Korea hit snags, a Turkish minister was quoted saying Saturday.

    The invitation to Toshiba will be extended next week, Energy Minister Taner Yildiz said in Seoul, where he accompanied Prime Minister Recep Tayyip Erdogan at the Group 20 summit, Anatolia news agency reported.

    Yildiz made the remarks after a meeting between Erdogan and South Korean President Lee Myung-Bak failed to resolve differences on a possible deal to build a nuclear power plant in northern Turkey, estimated to worth about 20 billion dollars (14.6 billion euros).

    “We failed to overcome (disagreements on) certain issues at this meeting… Some improved conditions were proposed and we said we would evaluate them,” Anatolia quoted the minister as saying.

    “But we will begin contacts with other countries as well. We have to enter into a speedy negotiation process,” he said, adding that US and European companies would also be considered as possible partners.

    The state power companies of Turkey and South Korea, EUAS and KEPCO, had signed a preliminary deal in March paving the way for talks aimed at concluding an inter-governmental agreement to build a nuclear power plant at Sinop, on Turkey’s northern Black Sea coast.

    Yildiz said earlier this week the talks had snagged on issues concerning financial terms, treasury guarantees and the distribution of shares in the planned company that would build and operate the plant.

    Overriding opposition from environmentalists, Turkey signed a deal worth 20 billion dollars with Russia in May to build the country’s first nuclear power plant, at Akkuyu on the southern Mediterranean coast.

    Ankara’s objective is to have nuclear plants up and running in at least two regions in 2023.

    The talks with Russia and South Korea came as part of renewed Turkish efforts to acquire atomic energy after an initial tender failed last year.

    Turkey plans to build a total of three nuclear power plants in hopes of preventing a possible energy shortage and reducing dependence on foreign supplies.

    Ankara abandoned an earlier plan to build a nuclear plant at Akkuyu in 2000 amid a severe financial crisis and protests from environmentalists.