Kazakhstan wants its first nuclear station to be built by international consortium
According to Timur Zhantikin, CEO of Kazakhstan Nuclear Power Plants (KNPP), a subsidiary of the Samruk-Kazyna holding, the idea of forming an international consortium to build Kazakhstan’s first nuclear power station is viable, though it depends on the stance of the Ministry of Energy.
«Our legislation allows for the creation of a consortium to construct a nuclear plant if this consortium is established as a legal entity. They must sign a special agreement outlining the responsibilities of all stakeholders. The consortium can then apply for the bidding process like any other company. We have experience dealing with consortiums in previous biddings, but I don’t know what it might look like this time, so you’d better ask the energy ministry. This idea is theirs,» Zhantikin told Kursiv.media.
While Zhantikin refrained from commenting on the ministry’s initiative, he clarified that a consortium wouldn’t include a contractor working with subcontracting companies.
«If Rosatom or CNNC is implementing the project in partnership with other organizations or companies… For example, look at the Akkuyu project in Turkey. They established Akkuyu Nuclear, a project company that includes three companies, which then created another entity to execute the project and hire additional companies. For instance, they purchased turbines and generators from the French and electronic components from the Germans. But this is not a consortium; these are subcontractors. Even if you form a project company, it’s not a consortium — it’s still a project company,» he explained.
However, Zhantikin acknowledged that in some cases, a project company could be described as a kind of consortium. He mentioned that it’s technically possible for French EDF to collaborate with Chinese CNNC.
«The future consortium can include various companies, as long as they share a common vision for the project. But, as [Mukhtar] Dzhakishev [former CEO of Kazatomprom] said, they might not reach a deal,» Zhantikin added.
The only certainty so far is that nuclear fuel for Kazakhstan’s first nuclear plant will be produced domestically.
«Kazakhstan is a supplier of nuclear fuel. While it’s not economically viable to produce fuel for just one plant, we also have access to the Chinese market, which offers both high turnover and revenue. This is a large market, and we can allocate a portion of that fuel for our own use. Everything will be fine in that regard,» Zhantikin said.
Head of Kursiv Research Sergey Domnin believes Kazakhstan has a real chance to build its first nuclear power plant with the help of a consortium.
«In previous nuclear power plant projects involving companies like Rosatom, KHNP and Westinghouse, the winning companies typically form a consortium of equipment suppliers and select a pool of project and construction companies. For instance, Rosatom collaborated with Siemens at Akkuyu, Westinghouse plans to partner with Bechtel in Poland and KHNP and Doosan Škoda Power will work together on a project in the Czech Republic,» Domnin explained.
He added that different companies can complement each other when collaborating within a consortium.
«The construction of power blocks involves highly sophisticated technology, such as reactor design and placement of crucial elements like the melt trap. This uniqueness makes it challenging to imagine how two technology suppliers — such as Rosatom and KHNP — could collaborate on the same project,» Domnin noted.
After the nationwide referendum on the nuclear plant construction on Oct. 6, President Kassym-Jomart Tokayev shared his vision for the project.
«This is a tough question. The cabinet must analyze it and conduct the necessary negotiations. Personally, I believe Kazakhstan needs an international consortium of well-known companies with access to the most advanced technologies. Of course, things can change, so let’s see,» Tokayev said.
Following the referendum, the Central Election Commission announced that 71.12% of Kazakhstanis who voted supported the construction of the country’s first nuclear plant.
There are currently four potential contractors for Kazakhstan’s first nuclear plant: CNNC (China, HPR-1000 reactor), Rosatom (Russia, VVER-1200, VVER-1000), KHNP (South Korea, APR-1400 reactor) and EDF (France, EPR1200 reactor). Kazakhstan was initially expected to select its partner by the end of 2022 and then by the end of Q1 of 2023, but the decision was postponed until after the referendum. Now, with the plebiscite completed, the government is set to make a final decision.
