Japanese company pulls out of Sinop nuclear power plant project

Japanese corporation Itochu, is pulling out of the nuclear power plant project in Turkey’s Black Sea province of Sinop, Turkish online paper artıgerçek reported, citing the Japanese stock exchange Nikkei.

Itochu has decided to leave the French-Japanese consortium, which includes the likes of Mitsubishi Heavy Industries and is building Turkey’s second nuclear power plant,  the site quoted Nikkei as reporting.

The decision, made following a feasibility study that showed that the cost of the plant almost doubled, follows news by Japanese daily Asahi that the cost of the plant in Sinop province has far exceeded initial calculations.

The site, quoting Asahi, reported that the initial cost of 2.1 trillion yen ($ 20 billion) catapulted to 4 trillion yen ($ 38 billion) since the agreement for the plant was signed in 2013.

Japanese companies have told Turkish officials that it will be difficult to complete the project with the 2023 calculation, the Japanese daily is quoted as saying.

Amid controversy, Sinop is set to become home to Turkey's second nuclear power plant which is expected to have a 4,480-megawatt capacity of electricity generation with four reactors, each with 1,120-megawatt capacity.