Thursday, 17 April 2014

MIR.1200 invests hundreds of millions in Temelín tender

ČTK |
10 December 2012

Ceske Budejovice, Dec 9 (CTK) - The MIR.1200 consortium, made up of Czech firm Skoda JS, and Russia's Atomstroyexport and Gidropress, has invested hundreds of millions of crowns in the tender to extend nuclear power plant Temelin, Skoda JS board of directors chairman Miroslav Fiala has told CTK.

Leos Tomicek, vice-president of company Rosatom Overseas, said the consortium promises to allocate orders worth Kc150bn to Kc175bn to companies in the Czech Republic if it wins the tender.

The other contestants in the tender to extend Temelin worth Kc200bn to Kc300bn are, beside the Czech-Russian consortium, US-Japanese company Westinghouse and France's Areva. However, Areva was thrown out from the tender by Temelin's operator CEZ in October. Areva appealed against the decision to the antitrust office UOHS.

The time schedule of the tender is not changing owing to Areva, according to Fiala. It was said officially that concrete talks with the individual participants will be started in January. The talks should be finished in summer.

CEZ should decide about the winner of the tender in September and sign a contract with it by end-2013. This means that the winner has to comply with its supplier obligations as of January 1, 2014, Fiala said.

"Not only we, but also the other rivals had mobilised a huge number of people and money that were invested in the bid. In the case of our bid, for example, it is not only Skoda JS, but all suppliers in our chain, that had to do the same," he said.

"I dare say there are hundreds of people and they invested a huge amount of money in it. Not millions or tens of millions, but hundreds of millions of crowns," Fiala said.

He does not believe very much that the tender or the extension of the power plant would be cancelled.

Josef Perlik, the head of the project of Temelin extension at Skoda JS, said CEZ wants to hand over all the documents describing the details of the system of the management of the project within 28 days after signing the contract.

"It is around 250 documents that describe to the last detail what will happen as part of the project in all phases of implementation up to the launch of the plant into operation. It would not be possible to produce these within 28 days after signing the contract. For this reason 50 percent of our efforts are now dedicated to the future implementation of the project," Perlik said.

Companies of the consortium already cooperate with Czech firms now, according to Tomicek. Rosatom has registered supplies from the Czech Republic worth around Kc2.8bn in the past four years.

"The leader is Vitkovice. Among the other companies are Sigma Lutin, Arako and other Czech fittings producers such as MSA. Cable producers such as Kabex are also successful," Tomicek said.

The consortium also offered to finance the project to CEZ in the form of a loan as well as co-ownership.

However, rival Westinghouse also offers cooperation to Czech companies. Westinghouse earlier already signed agreements on further cooperation with engineering company Vitkovice, builder Metrostavem, and companies I&C Energo and Hutni montaze.

The MIR.1200 consortium offers two reactors of the VVER-1200 type for Temelin. Each of the reactor has an output of 1,200 megawatts. Westinghouse has designed its AP1000 reactors that have an output of 1,117 megawatts.

Both the reactors are pressurised water reactors of generation III+.

The technology of Westinghous was in the Czech Republic supported by U.S. Secretary of State Hillary Clinton during her visit several days ago. Clinton said the technology offers the best security guarantees.

The appeal to the national energy security is considered as an artificial problem by rivals. The Czech Republic has been buying fuel for 27 years from Rosatom without problems, Tomicek said.

The construction of the third and fourth unit of Temelin should be finished in 2025 at the latest, according to plans.

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