PRACTICE OF COLLABORATION WITH LOCAL INDUSTRY IN PROJECTS OF NPP CONSTRUCTION WORLDWIDE

1. PRACTICE OF COLLABORATION WITH LOCAL INDUSTRY IN PROJECTS OF NPP CONSTRUCTION WORLDWIDE Technical Meeting on Topical Issues of Infrastructure Development: Managing the Development of a National Infrastructure for Nuclear Power L. Yanko Vienna, 9-10 February 2010

2. Finland Germany Poland Czech Republic Ukraine Slovakia Hungary Romania Bulgaria Egypt Libya Kazakhstan China Iran India NPP of Russian (Soviet) Design Worldwide our references: • Cooperation with the foreign countries since 1950s in the fields of NPP construction, establishing of nuclear research centres, exchange of scientific and engineering experience, training of engineering and scientific personnel • Wide references: • Since 1960s more than 30 NPP units with VVER reactors and 10 nuclear research centres have been constructed abroad (in the Czech Republic, the Slovak Republic, Finland, Hungary, Germany, Bulgaria, Rumania, Poland, Libya, Egypt, China, etc.) • Loviisa NPP with VVER type reactors in Finland was recognized as one of the best worldwide • Unite diversified infrastructure of scientific, engineering and production cooperation of the partner-countries within the framework of the Council for Mutual Economic Assistance (COMECON) • In the last ten years contracts for 7 NPP units construction 2

3. International Cooperation between Russia (former USSR) and the Countries of Eastern Europe in Nuclear Energy • Creation of nuclear scientific and research centers • Construction of manufacturing enterprises • Construction of pilot NPP • Exchange of scientific and engineering experience • Establishment of oint institute of nuclear research and joint activities of Russian and foreign specialists therein • Training of engineering, technical and scientific staff 3

4. INTERNATIONAL SPECIALIZATION • The Agreement on multilateral international specialization and cooperation in the manufacture and mutual supplies of NPP equipmentfor the period of 1981 – 1990 (June 1979) • Each country was specializing in manufacture of certain types of NPP equipment: • CSSR – reactor plants, steam turbines, steam generators, pipelines of large diameters • Bulgaria – biological shield, condensers, axial and artesian pumps • Hungary – refueling machines, special water treatment equipment • East Germany – bridge cranes, transport-technological equipment • Poland – pressurizers, heat exchanging equipment, standby diesel generator plants, in-core instrumentation systems • Rumania – accumulators of emergency core cooling system, MCP • Yugoslavia – bridge cranes,feedwater and special pumps, equipment of forced multiple circulation and drums-separators for RBMK reactors 4

5. AGREEMENTS • The agreements were aimed at training of national staff, joint choice and testing of nuclear reactor option for industrial NPP from the physical and technological points of view • NPP «Reinsberg» became a center of scientific and research activities of the nuclear engineering industry in GDR, and when a simulator was put in operation in 1974 it turned at the same time into a center of training and skill raising of NPP personnel from GDR and other countries-COMECON members • On the basis of NPP «Bohunice» was formed a large scientific and engineering center of nuclear engineering industry of Czechoslovakiawhich included the Nuclear PowerPlant Research Institute(VUJE), NPPV-1 and V-2 «Bohunice», as well as a scientific center for personnel training 5

6. SYSTEMATIC APPROACH TO CREATION OF NUCLEAR ENGINEERING INFRASTRUCTURE • The large-scale cooperation with the countries of Eastern Europe during NPP construction was • systematic and integrated • provided regular activities • starting with siting • elaboration of design adapted for concrete conditions • supply of complete plant for NPP and finishing with performance of specific installation works • providing technical assistance by all equipment installation supervision • NPP commencement works and putting in operation 6

7. STABILITY OF CREATED INFRASTRUCTURE • The infrastructure, created under assistance of Russian (Soviet) organizations, demonstrated its stability to political and economical changes • Technical and economic performances of the power units constructed with participation of Russian (Soviet) specialists were and continue being one of the best globally • With participation of Russian organizations, modernization activities have been performed and are being performed presently at NPP power units in Bulgaria, Hungary, the Czech Republic, Slovakia 7

8. Belene NPP utility ASE Siemens CURRENT RUSSIAN NPP PROJECTS ABROAD Form of intergovernmental agreements Kudankulam NPP, India 2 Unitswith VVER-1000 Tianwan NPP, China 2 Units with VVER–1000 • Commercial operation - 2007. • Principal Agreement on units 3,4 - November 6, 2007 • Agreement on additional 4 Units • Additional construction site in Haripur district Busher NPP, Iran 1 Unit with VVER-1000 New economic conditions – MARKET Belene NPP, Bulgaria 2 Units with VVER-1000 type reactors Form of open partnership and international cooperation 8

9. JSC ASE • technical responsibility for the project as whole TIANWAN NPP IN CHINA Russian side: design, equipment and materials supply • Chinese personnel training • Computer codes handover • Contracted installation activities • NPP commissioning • Chinese side: • Construction work • Installation work in four buildings of the "nuclear island“ - 23rd Construction Corporation of China Nuclear Industry • Electric and lighting equipment, instrumentation, laboratory equipment, part of the low-pressure pipelines and some pipe fittings Chinese design and research organizations were involved in work on the construction of TNPP, starting from the design stage 9

10. JSC ASE • technical responsibility for the project as whole KUDANKULAM NPP CONSTRUCTION IN INDIA Russian side: • Development of working documents • Designer’s supervision over construction of buildings and structures • Supply of equipment and materials • Engineering support during installation and startup • Indian personnel training • Engineering support during guarantee operation period • Indian side: • Implementation of construction, installation and commissioningworkatthe NPP site 10

11. JSC ASE • technical responsibility for the project as whole BELENE NPP CONSTRUCTION IN BULGARIA • Russian side: • Development of working documents • NPP power units construction on “turn-key” basis • Bulgarian personnel training • Bulgarian side: • According to the tender conditions participation of Bulgarian companies is up to 30% of construction costs 11

12. PROSPECTS OF COOPERATION Open Partnership and Localization Implementation of joint reference NPP project – MIR-1200 12

13. SPECIFIC FEATURESOF NUCLEAR POWER PROJECTS Higher capital costs Prolonged process of permitting Longconstructionperiod Relatively low and constant operational costs Significantly longer operational period (up to 60 years) Risks related to nuclear fuel – for population, property, environment Decommissioning costs and long term storage of spent fuel Different life cycles of projects (different evaluation and financing principles) of “expensive” nuclear plant with long operational period and cheap plant with short life cycle 13

14. OPTIONS OF THE SUPPLIER & USER INTERACTION LOCALIZATION GROWTH WITH NPP EXTENTION: step-by-step increase of national participation for subsequent units PERSONNEL EDUCATION AND TRAINING SUBSTANTIAL USING OF LOCAL LABOR FORCES: • maximum possible participation of domestic companies in civil works LICENSING SUPPORT COLLABORATION IN NPP MODERNIZATION COLLABORATION IN PUBLIC ACCEPTANCE IMPROVING : exhibitions, seminars, workshops etc. 14

15. FEATURES OF THE SUPPLIER & USER INTERACTION • Language of technical documentation, including procedures • Russian – English – Official Language • Personnel training: • general education in Russian VVER technologies (operated NPP, simulator) • specific on-site simulator training (2 years before operation) • Differences in national regulatory requirements in user and supplier countries: • supplier supports User’s collaboration with Regulatory Authority • developed countries use IAEA recommendations 15

16. INFRASTRUCTUREDEVELOPMENT Needs: • workers’ township • roads • electricity transmission lines and grids • social services • setting up new and loading existing factories Building and installation staff rises up to2 200 people During the construction more than 50 000 people should be employed 16

17. APPLICATION OF HUMAN RESOURCES The nuclear energy sector is characterised by long term horizons, technical complexities and need for knowledgeable and technically competent staff necessary for safe operations EXPERIENCEIN HUMAN RESOURCES DEVELOPMENT staffing/organization work force planning recruitment/retention training/education Critical factors to have an impact on training and education: – process of long duration – quite expensive – in some cases considered as correlations with specific technologies 17

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