CENTRAL ASIA BLOG: Is proposal that “international consortium” should build Kazakhstan’s nuclear plant merely cosmetic?

CENTRAL ASIA BLOG: Is proposal that “international consortium” should build Kazakhstan’s nuclear plant merely cosmetic?
Rosatom is the main contractor in the construction of Turkey's first nuclear plant, Akkuyu on the Mediterranean coast. / Rosatom
By bne IntelliNews October 9, 2024

Kazakhstan’s nuclear power plant (NPP) should be built by an “international consortium” says the country’s president, but what if this line is simply a distraction from the reality that Astana will after all be largely hitching its wagons to Russia’s state nuclear corporation Rosatom?

What if some work will go to various other contractors, but the essential main contractor deal will be awarded to the Russian company, meaning the Kremlin will be gaining crucial power and influence over the delivery of the energy security of Central Asia’s largest economy?

If these are the realities then Kazakh President Kassym-Jomart Tokayev and his officials might be accused of mounting a cosmetic operation to divert attention from the actual plan for the construction of the NPP, an agreement for which will now be put together following the October 6 referendum in which, officially, just over 70% of Kazakhs who voted gave a “Yes” to the question of whether their country should move into nuclear energy generation.

Prior to the vote, there was not exactly fevered speculation as to the question of who will build the “beast” given that most citizens, whether for or against the NPP, were pretty certain Vladimir Putin’s wishes would be met on this issue, particularly given Russia’s connection to Kazakhstan’s uranium mining and supply industry, the biggest in the world. But the authorities then surprised observers with replies to the question of who will construct the plant that amounted to saying, “Well, everyone”.

“Kazakhstan’s objective is to take the best technologies from different countries during the design phase. There is already a wealth of global experience in that respect. One country may specialise in the construction of a nuclear island, another in the production of turbines, and a third in the manufacture of electrical switchgear. It is crucial to avoid becoming overly reliant on a single supplier or contractor,” First Deputy Prime Minister Roman Sklyar said on October 8 during the day's government session.

The plans are being discussed amid expectations that Kazakhstan’s electricity deficit at peak hours - which currently stands at 2 GW - may explode to 7GW by 2030, Sklyar said.

“Without taking appropriate measures this figure may grow to 7GW, which is almost half of the current capacity," Sklyar added.

"It should be understood that we have committed to achieving carbon neutrality by 2060. The gradual withdrawal of old coal capacities is inevitable. In this regard, the construction of a nuclear power plant is the only acceptable option. We have all the necessary conditions for this," he said.

Timur Zhantikin, general director of state-run firm Kazakhstan Nuclear Power Plants, highlighted how most NPP projects worldwide are executed through collaborations between multiple companies.

He emphasised that, in such projects, a “lead company” is typically responsible for developing the nuclear island, which includes the nuclear reactor. This lead firm then partners with other companies that supply critical components such as energy equipment, electronics and electrical systems.

“Most such projects are usually carried out by one company, which acts as the main contractor. Then other companies are brought in for various tasks. For example, the Akkuyu NPP, which is currently under construction on the Mediterranean coast of Turkey. There, the corporation Rosatom is responsible for the nuclear reactor and all the surrounding equipment.

“French companies were involved in supplying electrical equipment—turbines, generators, and the control electronics were provided by the German company Siemens AG [Rosatom is facing difficulties due to a block on components delivery put in place by Berlin—Editor's note]. Additionally, other components were purchased from various companies. All of this is integrated under the leadership of the main construction company for the Turkish NPP, Akkuyu Nuclear”, Zhantikin was quoted as saying by KazInform.

He went on to note that “these four companies that we have selected [for consideration in building the Kazakh NPP]—Korean, Chinese, Russian, and French—all have international experience in consortia. Therefore, the best equipment suppliers will be involved in the construction of the NPP in Kazakhstan.” 

It appears though that France is not the only Western player interested in getting involved in the NPP construction. 

The United States has expressed its interest in participating in the construction of the plant, The Times of Central Asia has reported, citing comments from Khush Choksi, senior vice president of the US Chamber of Commerce, made during a visit paid by a US business delegation to Almaty. 

“The US has the best technologies for nuclear power plants. And we hope there will be an open tender, allowing American companies to participate,” said Choksi, answering journalists’ questions.

The contracting process for the Kazakh NPP seems to have become almost idyllic. But don’t be surprised if at the end of the day, it is Rosatom that’s sat very firmly in the boss seat.

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