JSC Akkuyu Nuclear, a Rosatom subsidiary charged with implementing the construction of Turkey’s Akkuyu Nuclear Power Plant, has been designated status of Turkish strategic investor.
A renewed "Strategic Investment" certificate was issued to JSC Akkuyu Nuclear following the company’s submission of an application to Turkey’s Ministry of Economy. The certificate was issued on the basis of the Law on “On amendments to the law on taxation, certain laws and regulations in the status of law”, which came into force on 27 March 2018 after being approved by the Turkish parliament, the Mejlis.
Granting of the certificate is of major importance for the economics of the project. In particular, it provides for tax reductions and exemptions (including from income tax and value added tax), as well as custom duties exemption.
"[JSC Akkuyu Nuclear’s] preferential status will positively affect the overall economic efficiency of the project, which in turn will contribute to the growth of the company's attractiveness for Turkish and international investors," said JSC REIN CEO Anastasia Zoteeva.
Russia and Turkey signed an intergovernmental cooperation agreement on the construction and operation of Turkey’s first nuclear power plant in 2010. Built on the Akkuyu site in Mersin province in southern Turkey, the Akkuyu NPP meets the latest safety and efficiency requirements in the global nuclear industry with its Generation III+ design featuring four Russian VVER-1200 reactors. Each of the NPP’s power units will have a capacity of 1200 MW. The total cost of the project is estimated at USD 20 billion.
The management and operation of the Akkuyu Nuclear Power Plant project are being carried out in accordance with the unique Build-Own-Operate scheme. The Akkuyu Nuclear Power Plant is the world's first nuclear power plant project implemented on this co-investment model, maintaining that project company Akkuyu Nuclear JSC is not only responsible for safety during the construction and operation of the nuclear power plant, but is also invested first-hand in the economic efficiency of the future station as its owner and the operating organisation.
According to intergovernmental cooperation agreement, the commissioning of the first power unit should take place no later than 7 years after the issuance of all construction permits by the Republic of Turkey.
The NPP project is currently being funded by the Russian side. According to the agreement, at least 51% of shares in the finished project should belong to Russian companies and up to 49% of shares can be available for sale to outside investors. Negotiations with potential investors continues.