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JSC Akkuyu Nuclear, a JSC REIN subsidiary charged with implementing the construction of Turkey’s Akkuyu Nuclear Power Plant, has been designated strategic investor.
A renewed "Strategic Investment" certificate was issued to JSC Akkuyu Nuclear following the company’s submission of an application to Turkey’s Ministry of Economy. The certificate was issued on the basis of the Law on “On amendments to the law on taxation, certain laws and regulations in the status of law”, which came into force on 27 March 2018 after being approved by the Turkish parliament, the Mejlis.
Granting of the certificate is of major importance for the economics of the project. In particular, it provides for tax reductions and exemptions (including from income tax and value added tax), as well as custom duties exemption.
"[JSC Akkuyu Nuclear’s] preferential status will positively affect the overall economic efficiency of the project, which in turn will contribute to the growth of the company's attractiveness for Turkish and international investors," said JSC REIN CEO Anastasia Zoteeva.
Russia and Turkey signed an intergovernmental cooperation agreement on the construction and operation of Turkey’s first nuclear power plant in 2010. Built on the Akkuyu site in Mersin province in southern Turkey, the Akkuyu NPP meets the latest safety and efficiency requirements in the global nuclear industry with its Generation III+ design featuring four Russian VVER-1200 reactors. Each of the NPP’s power units will have a capacity of 1200 MW. The total cost of the project is estimated at USD 20 billion.
The management and operation of the Akkuyu Nuclear Power Plant project are being carried out in accordance with the unique Build-Own-Operate scheme. The Akkuyu Nuclear Power Plant is the world's first nuclear power plant project implemented on this co-investment model, maintaining that project company Akkuyu Nuclear JSC is not only responsible for safety during the construction and operation of the nuclear power plant, but is also invested first-hand in the economic efficiency of the future station as its owner and the operating organisation.
According to intergovernmental cooperation agreement, the commissioning of the first power unit should take place no later than 7 years after the issuance of all construction permits by the Republic of Turkey.
The NPP project is currently being funded by the Russian side. According to the agreement, at least 51% of shares in the finished project should belong to Russian companies and up to 49% of shares can be available for sale to outside investors. Negotiations with potential investors continues.
JSC Rusatom Energo International (REIN) is a Rosatom subsidiary established in 2011 to promote Russian nuclear technologies on the global market. Since May 2015, the company specialises in managing foreign nuclear power plants construction and operation projects on the basis of project companies. Anastasia Zoteeva has been CEO of JSC REIN since December 2016.
Today, JSC REIN is engaged in the development of two full-scale construction projects: the Akkuyu four-unit nuclear power plant in Turkey and the one-unit NPP Khankhikivi-1 in Finland.
To implement the Akkuyu NPP project, project company JSC Akkuyu Nuclear was established in 2010 as a 100% subsidiary of JSC REIN.
RAOS Project Oy, which too is fully owned by JSC REIN, was established in Finland in February 2015 as the general supplier of the Khankhikivi-1 NPP. As per a 2014 agreement with Voimaosakeyhtiö SF, another Finnish subsidiary of RAIN, RAOS Voima, owns a 34% share of Fennovoima – the customer and the future operator of the Hanhikivi-1 NPP.