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1 THE PERCEIVED BENEFITS FOR TURKEY ADOPTING NUCLEAR ENERGY AND THE LESSONS LEARNED FROM THE ATTEMPTS MADE TO INTRODUCE A NUCLEAR PROGRAM.

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Presentation on theme: "1 THE PERCEIVED BENEFITS FOR TURKEY ADOPTING NUCLEAR ENERGY AND THE LESSONS LEARNED FROM THE ATTEMPTS MADE TO INTRODUCE A NUCLEAR PROGRAM."— Presentation transcript:

1 1 THE PERCEIVED BENEFITS FOR TURKEY ADOPTING NUCLEAR ENERGY AND THE LESSONS LEARNED FROM THE ATTEMPTS MADE TO INTRODUCE A NUCLEAR PROGRAM

2 2 EYYUP LÜTFİ SARICI ELECTRICITY GENERATION CO. TURKEY

3 3 NUCLEAR ACTIVITIES IN TURKEY ESTABLISHMENT OF ATOMIC ENERGY COMMISSION (AEC) IN 1956,LATER REESTABLISHED AS THE TURKISH ATOMIC ENERGY AUTHORITY (TAEK) BECAME AN IAEA MEMBER STATE IN 1957 ESTABLISHMENT TURKISH ELECTRICITY AUTHORITY (TEK) IN 1970 ESTABLISHMENT NUCLEAR POWER PLANT DEPARTMENT IN TEK IN NOVEMBER 1971.

4 4 ELECTRICITY GENERATION CO.

5 5 TURKEY HAS TRIED TO LAUNCH A NUCLEAR POWER PLANT PROJECT IN AKKUYU THIRD TIMES, GIVE BRIEF INFORMATION ON THE TURKISH EXPERIENCES, LESSONS LEARNED AND THE SURROUNDING PROBLEMS OF THE THREE ATTEMPTS ON THE BIDDING PROCESS AND SUMMARIZING PROBABLE FUTURE PROBLEMS INTRODUCTION

6 6 TURKEY AND TEAŞ ARE STRONGLY LINKED EACH OTHER WITHOUT ANY DIFFERENCES PRODUCING,TRANSMITTING AND DISTRIBUTING ELECTRICITY TO CONSUMERS. INTERNATIONAL COMPETITIVE MARKET PRICES. IMPROVED ENERGY INDEPENDENCE SECURITY OF ELECTRICITY SUPPLY ENVIRONMENTAL PROTECTION POLICY AND STRATEGY OF TURKEY AND TEAŞ

7 7 INTEGRATION OF THE NUCLEAR POWER PLANTS INTO THE GRID SYSTEM OF TURKEY WILL BRING THE FOLLOWING PROFITS: LONG-TERM RELIABILITY OF THE PLANT (AROUND 40 YEARS OF LIFE-TIME) INTRODUCING A DIVERSE FUEL INTO THE TURKISH ELECTRICITY PRODUCTION SYSTEM BESIDE FOSSILE FUELS LIKE COAL,NATURAL GAS AND FUEL-OIL. WITH ONLY ONE FUEL LOADING,MONTHS OF RELIABLE OPERATION FROM THE ASPECT OF FUEL, DURING OPERATION,ENVIRONMENTAL FRIENDLY BEHAVIOUR OF THE PLANT. POLICY AND STRATEGY OF TURKEY AND TEAŞ

8 8 SHORT,MEDIUM AND LONG-TERM NUCLEAR POLICY OF TEAŞ: REALIZATION OF NUCLEAR PROJECTS IN “TURN-KEY”BASIS FOR THE BEGINNING, BY KNOW-HOW AND TECNOLOGY TRANSFER, IN THE SECOND PHASE,TO REALIZE NUCLEAR POWER PLANTS IN “PACKAGES” AUGMENTING INDIGENOUS SHARE, MAXIMIZING THE LOCAL SHARE AND MANAGING THE PROJECT ON “COMPONENT” BASIS. POLICY AND STRATEGY OF TURKEY AND TEAŞ

9 9 TO BE SUCCESSFUL IN THE ABOVE STEPS, KNOW-HOW AND TECHNOLOGY TRANSFER ARE OF HIGH IMPORTANCE. TO GET ACQUINTED WITH NUCLEAR PROJECT MANAGEMENT METHODS AND RIGHT ORGANIZATIONAL STRUCTURE SHOULD BE REACHED AND APPLIED. TO INCLUDE THE STRONG CONFORMITY TO ALL SIGNED TREATIES AND AGREEMENTS BY THE COUNTRY AND IN ADDITION, TO RESPECT ALL SAFETY AND ENVIRONMENTAL STANDARDS ACCEPTED. POLICY AND STRATEGY OF TURKEY AND TEAŞ

10 10 TEAŞ HAS EXPERIENCED THREE INTERNATIONAL BIDDINGS FOR AKKUYU PROJECT. THESE TOOK PLACE IN YEARS: 1976-1980, 1983-1986 1993-2000 EXPERIENCES OF THE PAST

11 11 FEASIBILITY REPORTS FIVE FEASIBILITY REPORTS HAVE BEEN PREPARED EXTENSIVELY ON THE FIRST NUCLEAR POWER PLANT PROJECT OF TURKEY WHICH WAS GOING TO BE REALIZED ON AKKUYU SITE. THESE REPORTS ARE OF THE YEARS 1969,1973,1983,1996 AND 1997. THE FEASIBILITY REPORTS HAVE BEEN PREPARED IN YEARS 1969 AND 1973 GENERALLY WITHOUT HAVING ANY SITE LICENCE BUT THE OTHERS CONSITS OF SITE LICENCE.

12 12 THE FIRST ATTEMPT :1976-1980 PRESTUDY BEFORE BIDDING BEFORE THE BIDDING ANNOUNCEMENT, TEAŞ’S (FORMERLY TEK) ISSUES WERE OVERCOMED: STRUCTURING THE ORGANIZATIONS OF NUCLEAR POWER PLANTS DIVISION AND STAFFING IT, TRAINING OF THE STAFF, SELECTING A FOREIGN CONSULTANT PREPARATION OF THE BID SPECIFICATIONS, SITE SELECTION AND OBTAINING THE SITE PERMIT, BID EVALUATION AND CONTRACT NEGOTIATIONS TO OBTAIN THE REALIZATION OF THE CONTRACT

13 13 THE FIRST ATTEMPT :1976-1980 MANPOWER DEVELOPMENT TO STRUCTURE AND TO DEVELOPE MANPOWER AND THE ORGANIZATION OF THE NPP DIVISION: A NUMBER OF HIGHLY QUALIFIED TECHNICAL TURKISH STAFF WAS INVITED FROM ABROAD, AN EFFECTIVE TECHNICAL TRAINING PROGRAM WAS APPLIED ON THE REST OF THE STAFF, THE TRAINING WAS REALIZED WITH THE HELP OF INTERNATIONAL ATOMIC ENERGY AGENCY (IAEA), ELECTRICITE DE FRANCE (EDF) AND KRAFTWERK UNION (KWU) EITHER AS COURSES OR ON THE JOB TRAINING

14 14 THE FIRST ATTEMPT :1976-1980 PREPARATION OF THE BID SPECIFICATIONS AN ENGINEERING CONSORTIUM COMPOSED OF FOUR COMPANIES UNDER THE LEATHERSHIP OF SUISELECTRA FROM SWITHZERLAND, *GAAA-LATER NOVATOME-(FRANCE), *EMCH-BERGER ( SWITZERLAND *BASSLER-HOFFMANN ( SWITZERLAND) WAS ENGAGED INTO THE PROJECT. THIS CONSORTIUM HAS PREPARED THE BID SPECIFICATIONS UNDER CLOSE COLLOBORATION OF TEK’ PERSONNEL. A SET OF VOLUMES CREDITED INTERNATIONALLY FOR A “PACKAGE TYPE”BIDDING WAS READY

15 15 THE FIRST ATTEMPT : 1976-1980 SITE SELECTION A NUMBER OF SITE LOCATIONS WERE CONSIDERED AT THE BEGINNING, AKKUYU LOCATION WAS SELECTED, ENVIRONMENTALINVESTIGATIONS;SEISMIC,TECHTONIC,GEO LOGIC,METEOROLOGICAL,HYDROLOGICAL,SOCIO- ECONOMIC AND OTHERS HAVE BEEN COMPLETED BY TURKISH GOVERMENTAL INSTITUTIONS,UNIVERSITIES AND BY THE CONSORTIUM’S TECHNICAL STAFF AS WELL AS THE PERSONNEL OF NUCLEAR POWER PLANTS DIVISION, THE APPLICATION INCLUDING THE REPORTS WERE FOUND SATISFACTORY BY TAEK, THE SITE PERMIT WAS GRANTED ON 11 TH JUNE 1976.

16 16 THE FIRST ATTEMPT :1976-1980 BID EVALUATION AND CONTRACT NEGOTIATIONS THE INTERNATIONAL BIDDING WAS ON THE BASIS OF PACKAGES CONSISTING OF: NUCLEAR ISLAND WITH THE FIRST FUEL LOADING, TURBINE –GENERATOR AND BALANCE OF PLANTS INCLUDING THE SWICHGEAR. PACKAGES FOR CIVIL WORKS AND LONG-TERM FUEL SUPPLY WERE LEFT FOR THE CONSEQUENT BIDDINGS. THIS TYPE OF BIDDING’S AIM WAS MAXIMIZE THE LOCAL SUPPLY WITH MAXIMUM TECHNOLOGY TRANSFER EFFORTS

17 17 THE FIRST ATTEMPT :1976-1980 BID EVALUATION AND CONTRACT NEGOTIATIONS BIDDING WAS MADE IN 1977, SELECTED FIRMS ARE : ASEA ATOM,FOR THE NUCLEAR ISLAND AND ELECTRO- MECHANICAL SYSTEMS, STAL-LAVAL FOR THE TURBINE-GENERATOR AND BALANCE OF PLANT SPIE-BATIGNOLL FOR CIVIL WORKS( DURING NEGOTIATION). DISCUSSIONS WERE HELD WITH EACH OF THESE COMPANIES SEPARATELY WITH THE GENERAL ATTENDANCE OF THE ENGINERING CONSORTIUM MEMBERS ON DIFFERENT DISCIPLINES

18 18 THE FIRST ATTEMPT :1976-1980 MAJOR DIFFICULTIES DURING CONTRACT NEGOTIATIONS MAJOR DIFFICULTIES: THE LIMITED EXPERIENCE OF THE DIVISION’S STAFF ON A BIG SCALE NUCLEAR PROJECT CONTRACT REALIZATION,  HIGH-LEVEL BUREAUCRATICAL AND POLITICAL ANXIETIES ON THE PROJECT  100%FINANCE REQUIREMENT OF TURKISH GOVERMENT APPROVAL OF THE CONTRACT COULD NOT TAKE PLACE UNTIL SEPTEMBER 1980 AND DISCUSSIONS CEASED TO CONTINUE AFTER 12 TH SEPTEMBER 1980 MILITARY ACTION.

19 19 THE FIRST ATTEMPT :1976-1980 GAINED EXPERIENCE DURING NEGOTIATION SELECTING AKKUYU SITE AND OBTAINING THE SITE PERMIT, TRAINED STAFF TO PREPARE THE BID SPECIFICATIONS,TO HANDLE THE EVALUATIONS AND PROCEED IN CONTRACT NEGOTIATIONS, GENERAL INFORMATION ACCUMULATION ON NUCLEAR POWER PLANT PROJECTS.

20 20 THE SECOND ATTEMPT: 1983-1986 PREPARATION OF BID SPECIFICATIONS BY THE DIVISION’S STAFF ON TURN-KEY BASIS, OPENING AN INTERNATIONAL BIDDING, RECEIVING OFFERS FROM SEVEN BIDDERS, DELIVERANCE OF LETTER OF INTENDS TO: AECL(CANADA),665 MWe, AKKUYU KWU(GERMANY),990 MWe, AKKUYU GE(USA),1185 MWe, SINOP

21 21 THE SECOND ATTEMPT: 1983-1986 UNTIL 30 TH AUGUST 1984 THE GREAT MAJORITY OF CONTRACT SCOPE WERE FINALIZED WITH BOTH AECL AND KWU. BOTH COMPANIES HAVE BROUGHT THE FULL AMOUNT OF CREDITS FOR EXPORTS AND ADVANCE PAYMENT WITH A PART OF THE CREDIT NECESSARY FOR LOCAL EXPENDITURES. THE CONTRACT APPROACH HAS CHANGED “BOT”,MODEL IN SEPTEMBER 1984. BEGINNING OF YEAR 1986 DISCUSSION COLLAPSED DUE TO: FINANCIAL STATE GUARANTEES AND PARTLY THE CHERNOBYL ACCIDENT

22 22 THE SECOND ATTEMPT: 1983-1986 EXPERIENCE GAINED BY TURKEY THE CAPABILITY OF PREPARATION OF BID SPECIFICATIONS FOR A NUCLEAR POWER PLANT ON TURN-KEY BASIS, THE EXPERIENCES OF FORMING AND FINALIZING THE CONTRACT AND ITS ANNEXES BOTH IN CONVENTIONAL AND BOT MODELS, FORMING THE STRUCTURE OF ORGANIZATION FOR BOT MODEL BEING THE FIRST TIME ON THE WORLD FOR SUCH A BIG SCALE PROJECT.

23 23 THE SECOND ATTEMPT: 1983-1986 EXPERIENCE GAINED BY TURKEY DISTURBING THE ADVANCE OF THIS PROJECT: CHANGING THE CONTRACT APPROACH COMPLETELY FROM CONVENTIONAL TO BOT MODEL. TO CHANGE THE CONTRACT APPROACH AND MODEL WAS THE MOST RISKY ACTION DURING NEGOTIATIONS CAUSING A DEFINITE NEGATIVE EFFECT ON EFFORTS. MOREVER IF THE BOT MODEL WAS INTRODUCED AT THE VERY BEGINNING BEFORE INTERNATIONAL BIDDING ANNOUNCEMENT OR WITH LETTERS OF INTEND,THE SUPPLIERS MIGHT BRING SOUND SOLUTIONS TOGETHER WITH TEK TO GO ON.

24 24 THE THIRD AND THE LATEST ATTEMPT:1993-2000 REFRESHED TEAŞ NUCLEAR PROGRAM, STARTED BY INTEGRATING THE AKKUYU PROJECT INTO THE FIVE YEARS INVESTMENT PLAN IN 1993, SELECTED KAERI AND GAMB,KOREAN AND TURKISH ENGINERING COMPANIES, TO PREPARE A GENERAL REPORT ON WORLD’S NUCLEAR SITUATION AND RECOMMENDATIONS FOR REALIZATION OF AKKUYU PROJECT TO PREPARE BID SPECIFICATIONS BY USING THE ONE USED FOR 1983 TURN-KEY BIDDING AN INTERNATIONAL BIDDING WITH 100% FINANCE PRE- CONDITION OPEN TO ALL TYPES WAS ANNOUNCED ON 17 TH DECEMBER 1996.

25 25 THE THIRD AND THE LATEST ATTEMPT:1993-2000 STEPS OF THE AKKUYU NPP PROJECT RECEIVING THE OFFERS ON 15 TH OCTOBER 1997 FROM AECL(CANADA), NPI(FRENCH-GERMAN) WESTINGHOUSE(USA) SELECTING ANOTHER CONSULTANT, EMPRESARIOS AGRUPADOS (EA) ( SPAIN) AND THEIR SUBCONTRACTOR SERDULA SYSTEM.CO.(CANADA),09 FEBRUARY,1998 STARTING TECHNICAL EVALUATION ON MARCH 1998 START OF POSTPONES ON 15 TH OCTOBER 1998 FINALIZED BOTH TECHNICAL AND ADMINISTRATIVE, COMMERTIAL AND ECONOMICAL EVALUATIONS BY TEAŞ’S EVALUATION COMMITTEE ON MAY 1999. SUSPENDED THE PROJECT FOR AKKUYU ON 24 TH JULY 2000.

26 26 CONCLUTIONS FOR THE THREE ATTEMPTS EXPERIENCE GAINED BY TURKEY  SITE SELECTION CAPABILITY.THERE IS ONE SITE ALREADY HAVING THE SITE PERMIT.  EXPERIENCED STAFF TO PREPARE THE BID SPECIFICATIONS BOTH IN PACKAGE-VICE AND IN TURN- KEY BASIS.  TECHNICAL,ADMINISTRATIVE,COMMERTIAL AND ECONOMICAL EVALUATION EXPERIENCE.  CAPABILITY OF CARRYING OUT CONTRACT NEGOTIATIONS,AND PREPARATION OF CONTRACT DOCUMENTS BOTH IN PACKAGE-VICE AND IN TURN-KEY BASIS FOR CONVENTIONAL TYPE CONTRACT.

27 27 CONCLUTIONS FOR THE THREE ATTEMPTS EXPERIENCE GAINED BY TURKEY  EXPERIENCE IN BUILT-OPERATE-TRANSFER TYPE CONTRACT NEGOTIATIONS.  TRAINED AND EXPERIENCED TECHNICAL STAFF TO START AND CARRY THE PROJECT  DEVELOPED HER OWN NUCLEAR REGULATORY REQUIREMENTS.  SIGNED BILATERAL NUCLEAR AGREEMENTS BETWEEN TURKEY AND NUCLEAR MATERIAL EQUIPMENTS SUPPLIERS’ COUNTRY.  PUBLIC ACCEPTANCE TO THE TARGET PEOPLE

28 28 CONCLUTIONS FOR THE THREE ATTEMPTS LOSSES FOR COUNTRY  THE NUCLEAR PROGRAM COULD NOT START EFFECTIVELY ALTHOUGH THERE HAVE BEEN THREE ATTEMPTS,  TURKEY HAS LOST SOME OF HER INDUSTRIAL PRODUCTION CAPACITY FROM TIME TO TIME BECAUSE OF ELECTRICITY INSUFFICIENCY,  KNOW-HOW AND TECHNOLOGY TRANSFER IN HIGH AMOUNTS HAVE BEEN DISRUPTED SINCE THE PROJECT COULD NOT BE STARTED,  INVESTED MONEY ON THE SITE AND ON THE STAFF HAVE PARTLY BEEN LOST,  LAST BUT NOT THE LEAST,THE ENERGY PROBLEM OF THE COUNTRY IS STILL IN THE AGENDA AND SEEMS TO CONTINUE.

29 29 CONCLUTIONS FOR THE THREE ATTEMPTS LOSSES FOR COUNTRY LOSTED ENERGY AMOUNT TO BE PRODUCED DURING THE THREE ATTEMPTS ON THE BIDDING PROCESS FOR FOURTY YEARS OPERATION PERIOD AND LOSTED ENERGY PROFIT OR IMPORTING THIS MUCH ENERGY PAYMENTS

30 30 CONCLUSIONS WHEN THE DECISION WILL BE TAKEN TO PREFER ONE OF THE BIDDERS,IT WILL BE THE DAY OF RIGHT ECONOMICAL CONDITIONS FOR BOTH THE PROJECT AND THE TURKISH ECONOMY.

31 31 THANKS FOR YOUR PARTICIPATION


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