Identifier
Created
Classification
Origin
09ANKARA1729
2009-12-04 13:31:00
CONFIDENTIAL
Embassy Ankara
Cable title:
GOT REQUESTS USTDA ASSISTANCE ON NEW NUCLEAR TENDER
how-toVZCZCXYZ0000 PP RUEHWEB DE RUEHAK #1729 3381331 ZNY CCCCC ZZH P 041331Z DEC 09 FM AMEMBASSY ANKARA TO RUEHC/SECSTATE WASHDC PRIORITY 1387 INFO RHEBAAA/DEPT OF ENERGY WASHINGTON DC PRIORITY
C O N F I D E N T I A L ANKARA 001729
SENSITIVE
SIPDIS
DEPARTMENT FOR S/EEE RICHARD MORNINGSTAR
DEPARTMENT PLEASE PASS TO USTDA
DOE FOR OFFICE OF RUSSIAN AND EURASIAN AFFAIRS: LANA EKIMOFF
E.O. 12958: DECL: 12/04/2019
TAGS: ENRG PGOV TU
SUBJECT: GOT REQUESTS USTDA ASSISTANCE ON NEW NUCLEAR TENDER
REF: ANKARA 1698
Classified By: DCM Doug Silliman for reasons 1.4 (b,d).
C O N F I D E N T I A L ANKARA 001729
SENSITIVE
SIPDIS
DEPARTMENT FOR S/EEE RICHARD MORNINGSTAR
DEPARTMENT PLEASE PASS TO USTDA
DOE FOR OFFICE OF RUSSIAN AND EURASIAN AFFAIRS: LANA EKIMOFF
E.O. 12958: DECL: 12/04/2019
TAGS: ENRG PGOV TU
SUBJECT: GOT REQUESTS USTDA ASSISTANCE ON NEW NUCLEAR TENDER
REF: ANKARA 1698
Classified By: DCM Doug Silliman for reasons 1.4 (b,d).
1. (SBU) At the December 3 meeting of the U.S.-Turkey Energy
Working Group (EWG) meeting, Hakki Akil, MFA deputy
undersecretary for economic affairs and head of the Turkish
EWG delegation, informed us that Energy Minister Yildiz is
ready to accept USTDA's earlier offer of technical assistance
on designing a new nuclear power plant tender process. Akil
said they very much want western companies to bid on the
projects and believe USTDA assistance can help them achieve
that goal. (Note: A Russian-led consortium was the sole
bidder in the recently canceled tender issued in September
2008.) The GoT plans to move forward on two nuclear power
plants in the immediate future, but they have not yet decided
on the structure of the projects, whether public-private
partnership, build-and-operate, a tender process, or
formation of a state-owned company. The GoT is now revising
the laws governing the nuclear tender to allow for a change
in structure and adjust the provisions that caused
difficulties with the September 2008 tender (reftel). Akil
suggested it could be helpful to have USTDA assistance in
revising the laws. The U.S. side thanked Turkey for its
receptivity to the USTDA proposal, but noted that we would
have to check with USTDA to see if the offer remained on the
table.
REASONS TO SUPPORT TURKISH NUCLEAR POWER CAPACITY
--------------
2. (C) Turkey has been working to build a nuclear power plant
since the 1960s, including several failed attempts at
tendering bids. The GoT currently aims to install three to
five plants for a total capacity of 5000 MW over the next
five to seven years. Nuclear energy thus plays an important
role in Turkey's energy strategy to improve the country's
energy security and independence and lower its carbon
footprint. USTDA assistance could help Turkey develop a new
tender process based on international best practices that
could both encourage bids from a variety of companies (unlike
Turkey's last bid) and develop a successful "Turkish model"
for other countries to follow.
BACKGROUND ON USTDA PROPOSAL
--------------
3. (C) In April 2009, a USTDA delegation led by Acting
Director Leocadia Zak visited Ankara and discussed with the
Ministry of Energy (MENR) a range of possible projects to
support the Turkish energy sector. The GoT officials had
expressed interest in learning from U.S. companies and
consultants how they could structure future nuclear tenders
to attract multiple bidders. USTDA proposed a seminar on how
to increase competition, followed by one-on-one meetings
between U.S. companies and Turkish officials and
organizations. The GoT, however, declined to include it in
the package of projects chosen for implementation in April.
COMMENT
--------------
4. (C) We understand that USTDA now has concerns with
providing Turkey technical assistance on a new nuclear
tender. Due to the importance of nuclear power in Turkey's
energy strategy and our desire to ensure that future Turkish
nuclear tenders meet international best practices, we would
appreciate USTDA's serious consideration of a technical
assistance project to assist Turkey's nuclear tenders in
particular, or large energy project tenders in general.
JEFFREY
"Visit Ankara's Classified Web Site at http://www.intelink.s
gov.gov/wiki/Portal:Turkey"
SENSITIVE
SIPDIS
DEPARTMENT FOR S/EEE RICHARD MORNINGSTAR
DEPARTMENT PLEASE PASS TO USTDA
DOE FOR OFFICE OF RUSSIAN AND EURASIAN AFFAIRS: LANA EKIMOFF
E.O. 12958: DECL: 12/04/2019
TAGS: ENRG PGOV TU
SUBJECT: GOT REQUESTS USTDA ASSISTANCE ON NEW NUCLEAR TENDER
REF: ANKARA 1698
Classified By: DCM Doug Silliman for reasons 1.4 (b,d).
1. (SBU) At the December 3 meeting of the U.S.-Turkey Energy
Working Group (EWG) meeting, Hakki Akil, MFA deputy
undersecretary for economic affairs and head of the Turkish
EWG delegation, informed us that Energy Minister Yildiz is
ready to accept USTDA's earlier offer of technical assistance
on designing a new nuclear power plant tender process. Akil
said they very much want western companies to bid on the
projects and believe USTDA assistance can help them achieve
that goal. (Note: A Russian-led consortium was the sole
bidder in the recently canceled tender issued in September
2008.) The GoT plans to move forward on two nuclear power
plants in the immediate future, but they have not yet decided
on the structure of the projects, whether public-private
partnership, build-and-operate, a tender process, or
formation of a state-owned company. The GoT is now revising
the laws governing the nuclear tender to allow for a change
in structure and adjust the provisions that caused
difficulties with the September 2008 tender (reftel). Akil
suggested it could be helpful to have USTDA assistance in
revising the laws. The U.S. side thanked Turkey for its
receptivity to the USTDA proposal, but noted that we would
have to check with USTDA to see if the offer remained on the
table.
REASONS TO SUPPORT TURKISH NUCLEAR POWER CAPACITY
--------------
2. (C) Turkey has been working to build a nuclear power plant
since the 1960s, including several failed attempts at
tendering bids. The GoT currently aims to install three to
five plants for a total capacity of 5000 MW over the next
five to seven years. Nuclear energy thus plays an important
role in Turkey's energy strategy to improve the country's
energy security and independence and lower its carbon
footprint. USTDA assistance could help Turkey develop a new
tender process based on international best practices that
could both encourage bids from a variety of companies (unlike
Turkey's last bid) and develop a successful "Turkish model"
for other countries to follow.
BACKGROUND ON USTDA PROPOSAL
--------------
3. (C) In April 2009, a USTDA delegation led by Acting
Director Leocadia Zak visited Ankara and discussed with the
Ministry of Energy (MENR) a range of possible projects to
support the Turkish energy sector. The GoT officials had
expressed interest in learning from U.S. companies and
consultants how they could structure future nuclear tenders
to attract multiple bidders. USTDA proposed a seminar on how
to increase competition, followed by one-on-one meetings
between U.S. companies and Turkish officials and
organizations. The GoT, however, declined to include it in
the package of projects chosen for implementation in April.
COMMENT
--------------
4. (C) We understand that USTDA now has concerns with
providing Turkey technical assistance on a new nuclear
tender. Due to the importance of nuclear power in Turkey's
energy strategy and our desire to ensure that future Turkish
nuclear tenders meet international best practices, we would
appreciate USTDA's serious consideration of a technical
assistance project to assist Turkey's nuclear tenders in
particular, or large energy project tenders in general.
JEFFREY
"Visit Ankara's Classified Web Site at http://www.intelink.s
gov.gov/wiki/Portal:Turkey"