Mar 11 2018

Funding difficulties may delay Turkey’s planned nuclear power plant

Turkey’s plan to build a nuclear power station is at risk of falling behind schedule, reports Turkish financial website PA Intelligence.

The $20 billion nuclear plant at Akkuyu, on Turkey’s southern coast, is supposed to open in 2023 as part of Turkey’s “2023 vision” marking the 100 anniversary of the founding of the modern Turkish Republic.  

The reason for the potential delay is that Rosatom, the Russian company charged with building the plant, cannot find local partners willing to take an equity stake.

Rosatom would like Turkish partners to take on a 49 percent stake in the project, which would amount to funding of $10 billion.

Anonymous sources said that Rosatom is considering partnering with 4 Turkish companies, but that little progress has been made until now.

“It is a very big project, there are many details and issues that need to be worked on. We can’t expect this to be resolved soon,” said one source, who declined to be identified.

Turkish companies have been deterred by the amount of the financing required and by concerns that they will not receive enough of the lucrative construction side of the deal, industry sources say. They are also worried that the long-term price paid for electricity generated by the plant may be reduced, in turn reducing profitability.