Korea, Turkey Come Closer to Nuclear Power Deal

The two governments sign an MOU on cooperation in the nuclear industry

Korea and Turkey have signed a memorandum of understanding on cooperation in the nuclear power industry, raising the possibility that Korea will be awarded a deal to build nuclear power units in Turkey.
Korean Minister of Knowledge Economy Choi Kyung-hwan and Turkish Energy Minister Taner Yildiz inked the agreement at Cheong Wa Dae on June 15 in the presence of Korean President Lee Myung-bak and Turkish President Addullah Gul, who held talks earlier the same day.
The agreement follows a joint declaration between Korea Electric Power Corp. and its counterpart, the Turkish state-run power company, which was made on March 10. The project to build nuclear power units in Turkey’s northern region of Sinop is expected to pick up momentum with support from the governments of both countries.
The MOU stipulates comprehensive cooperation on the Sinop nuclear power project between the two government in such areas as the negotiations of an Intergovernmental Agreement (IGA), the supporting of preliminary preparations, planning, education and training, and manpower development.
Korea and Turkey plan to complete their joint study of the project by around August. Based on the outcome of the joint study, the two governments are scheduled to hold negotiations on the IGA, which will stipulate the location of planned nuclear power units, their sizes and how to implement the project. If the two governments conclude the IGA and the involved power companies wrap up a Framework Agreement, they are scheduled to sign a final contract in late 2011.
The latest agreement indicates that Korea has been granted official standing as the business partner of the Sinop project. As long as Korea does not categorically refuse it, the nation is most likely to land the contract to build nuclear power units in the Black Sea area.
Vice Minister for Trade and Energy Kim Young-hak said, “It is the first time that both countries have disclosed their official intent to cooperate with each other, indicating that chances are high that Korea will win the Sinop project.”
The two nations have a long way to go before concluding a deal on the power plant project, however. They will have to iron out differences, including financing. The Turkish side wants Korea to take responsibility for the whole of the financing, but the Korean side opposes full financing, which was Russia’s proposal to Turkey.
If Korea lands a contract on the Sinop project, it will be the second contract to export nuclear power units abroad. Last December, Korea won a contract to build four nuclear power units in the United Arab Emirates.
KEPCO said it has been in negotiations with Turkey to provide the Advanced Pressurized Reactor 1400, the same model it is now building for the UAE. nw

(top) Korean Minister of Knowledge Economy Choi Kyung-hwan signs an MOU on cooperation in the nuclear industry with Turkish Energy Minister Taner Yildiz at Cheong Wa Dae on June 15 as Korean President Lee Myung-bak and his Turkish counterpart, Addullah Gul look on. Earlier, the two ministers are seen shaking hands prior to their talks.

Courtesy on the MCST / Courtesy on the MKE