Prague move of Rosatom

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AtomInfo.Ru, PUBLISHED November 02, 2011

On Monday, the final phase of Temelin competition has been started. Three participants, the Czech-Russian consortium, the French group AREVA and U.S. "Westinghouse", will receive technical documentation and return home to prepare the bids for third and fourth units of Temelin NPP.

On the eve of this event the Russians held in Prague a reconnaissance approach or AtomExpo Europe international forum. The results were satisfactory for them.

Contract depoliticization

"We are satisfied with all the meetings," said Rosatom head Sergei Kiriyenko after Prague's forum.

"We need to understand exactly the terms, conditions and criteria that will be used in competition. The only point we need to know before answering the Czech's call is we have to be sure that all decisions will be not made based on political preferences. The decisions shall be made based on pragmatic criteria of safety, reliability and cost profitability. It is quite enough," said Kiriyenko.

Apparently, the Russian side managed to get confirmation from the Czech on depoliticization of the competition. In turn, the Russians have confirmed their readiness "to take a most active part," and, of course, fight for victory.

Honestly it was some fears that the Temelin competition will be politically-biased. There are too many partisans of "talks-about-energy-dependence-on-Russia" in the Czech Republic and abroad. They insist that any new VVER-1000 reactors in the Czech nuclear plants will deepen this alleged dependence.

The Russians argue. If new Temelin units will receive the Russian-designed reactors, it will benefit the energy independence of the Czech Republic.

So, what are the arguments of Moscow? The Russian bid will consider the incredibly high level of localization, up to 70%. Even more, Russia is ready to transfer know-how to the Czech factories. It means they will have an ability to produce basic equipment for all Russian-designed nuclear plants in the future.

One could cut the oil-pipe. But one could not take back the knowledge, skills and abilities even if he really wants. Therefore, transfer of know-how coupled with high localization can be considered as a guarantee for the Czech Republic, ensuring its energy independence.

Realistic schedule

The timetable of Temelin tender seems to be comfortable for all members, all three approved world-leading reactor vendors. No delay is now assumed by industry experts.

The complete package of detailed tender documentation defining the full contract scope and technical and commercial requirements for new units has been released on Monday. Three vendors have been given until July 2012 to place their bids.

The Czechs will study the bids during one year or more. It is not clear when the winner will be announced but the sources mention December 2013.

The next phase will last 44 months. This is for preparation of project documentation, licensing, and other preparatory work. Then the actual construction will start.

The first of two new units, most probably Temelin-3, should be put into operation in 2022 or 2023. The second novice must follow him a year later.

The timetable looks like the real and soft one. Of course, the customer always has the right to propose certain changes. And the bidders and / or the winner have the right to agree or disagree with the customer's proposals.

Czech perspective

The Temelin tender is ongoing, and Czech companies are already beginning to feel the advantages of cooperation with Russia. A large group of Czech companies that participated in the Atomexpo Europe exhibition and conference in Prague, reported on the first fruits of common work with the Russians.

"Once Atomenergomash acquired a controlling stake in the Arako company in 2007, we doubled our revenue, increased the number of employees up to 220 people and raised wages by 48-50%," said Arako CEO Rovshan Abbasov.

The specialty of Arako is valves for nuclear power plants. Today it claims to be one of the largest valve supplier for Russian-designed NPPs. The company is seeking for ASME certificate enabling to fight for orders for U.S.-designed nuclear power plants.

"We are also implementing a comprehensive investment program to modernize our factories, and we are spending approximately 250 million rubles. Most of money we took from the local Czech bank under Rosatom loan guarantee. We buy new equipment, modernize the entire production line and looking for significant cost reduction and productivity increase", said Mr.Abbasov.

Arako is delivering its valves to Leningrad, Rostov and Kalinin NPPs in the Russian Federation. Certainly the Czech valves are also intended for Mochovce NPP in Slovakia, which is now being completed the third and fourth units with modified VVER-440 reactors.

The Modrany power company has been worked with the Russia's Atomstroyexport for Tianwan NPP in China. Commercial director Peter Brozhek hopes the Russians will not forget their Czech partners when the second phase of Tianwan NPP would be under construction.

"Well, of course, I would have hoped for the supply for Kudankulam, and Turkey. I hope the people responsible for nuclear business, will feel the political support from the top of government," considers Brozhek.

JSC Sigma Group has the over 20-year experience of cooperation with Russian nuclear scientists.

"We are working with the Russians for nearly 20 years. We were working with them on Czechoslovakia nuclear projects, and we are working on current projects in Russia. Let me mention Novovoronezh, Leningrad, Beloyarsk, Rostov," reminds marketing director Miroslav Vesely.

Mr. Vesely indicates the interest of his company clearly. "Naturally, we assume that if the Czech-Russian consortium will win the Temelin tender, Sigma Group will have its part in the pumping equipment supply."

The general attitude of the Czech industry is as following. With help of Rosatom, they can get many profitable orders in Temelin and abroad.

"Big projects are seen ahead, in the Czech Republic, in Hungary and Slovakia. I think this is a very important step to attract the Czech suppliers and create favorable conditions for participation," believes "Nukem Technologies GmbH"'s managing director for Russia and Eastern Europe Andreas Vayhard.

Topics: Czech, NPP Temelin

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