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Turkey to finalise nuclear deal by Dec -minister

Wed Nov 4, 2009 7:03pm IST
 
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* Turkey to finalise negotiations with Atomstroiexport

* Plans underway for more sites

By Melis Senerdem

ISTANBUL, Nov 4 (Reuters) - Turkey expects to finish talks with Russia's Atomstroiexport by next month on building its first nuclear power plant and will accelerate plans to construct more, Energy Minister Taner Yildiz said on Wednesday.

Turkey has repeatedly pushed back a deadline to finish the tender, held in September 2008, at which Atomstroiexport and its partners Inter RAO (IRAO.MM: Quote, Profile, Research) and Turkey's Park Teknik were the only bidders. It wants the group to lower the price at which it will sell the government electricity.

"Talks on the nuclear power station are continuing, but are not at the point where I can share details with the public," Yildiz told an energy conference. "We want to complete it by the end of November or ... December."

Turkey is reviewing Atomstroiexport's revised bid. The new price is $0.134-$0.154 per kilowatt hour, 27 percent lower than its original bid but still about double current rates.

The government has guaranteed 15 years of power purchases to encourage investment in the plant, but any builder will still charge a premium to recoup as much as $8 billion in costs.  Continued...

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