Economic effect

Expected project effect for the region


Akkuyu NPP is a landmark project for Turkey. The first nuclear power plant in the Republic of Turkey will become a stable source of electricity, will contribute to the social and economic development of the country and the region, and the implementation of the Akkuyu NPP construction project will break the ice in the creation and development of a nuclear industry new to the country.

 

Turkey has the opportunity to gain experience and the best technologies accumulated over many years of development of the industry. Rosatom State Corporation has unique experience in the field of nuclear construction and operation, which ensures fielding of the most successful practices and best technologies. The entire amount of accumulated knowledge will be directly communicated to Turkish specialists, since the project provides for maximum participation of Turkish companies in construction and installation works, and later on Turkish specialists will be involved in the NPP operation at all stages of its life cycle.

 

The Akkuyu NPP project offers significant opportunities for Turkish suppliers. It is currently estimated that Turkish companies may perform up to 40% of Akkuyu NPP construction works.

 

The construction of nuclear power plants provides economic growth and conditions for emergence of new jobs: 1 workplace during NPP construction creates more than 10 jobs in related industries. The development of nuclear energy industry contributes to growth of scientific research, production and export of high-tech products.

 

Most of those who are to come to work on the site will live in the Gulnar district in the immediate vicinity of the worksite. A temporary construction camp with infrastructure for builders from other regions of Turkey and seconded personnel (for several thousand people), and a permanent residential area, also with infrastructure to accommodate nuclear plant personnel with families (about 4,500 people), are to be built.

 

It is expected that up to 10,000 people will work at the site during the peak construction period. And this is exclusive of involvement of other industries that will provide the infrastructure for the NPP construction and operation. The necessary work has been organized to provide accommodation for specialists in the site area. Thousands of long-term additional jobs will be created; regional infrastructure, trade and the hotel business, research, medicine, mechanical engineering, and agriculture will be developed in the province of Mersin.

 

There will be residential premises, hotels, shops, schools and kindergartens, a medical center, bank, cultural and sports facilities.

 

Interested and adequately qualified inhabitants of the province of Mersin and surrounding regions will be able to work at all facilities making up the infrastructure of NPP and residential areas.

 

With the commissioning of the station, development of infrastructure, creation of new jobs and growth of the solvent population of the region, the Mersin province will gain an additional impetus for development of local industries, the service sector, hotel business, and will become more attractive both for permanent residence and for tourists.

 

In accordance with the terms of the Intergovernmental Agreement and the arrangements within the framework of the intergovernmental commission on trade and economic cooperation, AKKUYU NUCLEAR JSC is responsible for the training of operating personnel for Akkuyu NPP. In March 2018, took place the first graduation of Turkish students trained in the nuclear energy field at the leading specialized university, National Research Nuclear University MEPhI. 35 Turkish young professionals successfully completed a 6.5-year training course with a degree in "Nuclear power plants: design, operation and engineering". All of them received higher education diplomas in Russia and were hired by AKKUYU NUCLEAR JSC to implement the project of the first nuclear power plant in Turkey. In 2019, another 53 young specialists from Turkey who received higher specialized education at MEPhI were hired by the company. In February 2020, 54 graduates of MEPhI received their diplomas, followed by job offers to join the Akkuyu project. These young employees will become the backbone of the Turkish nuclear industry, a new high-tech direction for the development of the Turkish economy.

 

Demand for electricity in Turkey is growing, and nuclear power generation is becoming a necessity. If Akkuyu NPP had been built 10 years earlier, Turkey would have saved up to $14 billion in gas purchases.

 

According to calculations by the Ministry of Energy and Natural Resources, if Akkuyu NPP were to start functioning today, then it alone would provide electricity to a large city with a population of 15 million, such as Istanbul.

 

Expected effect of residential area construction

 

The construction of the "atomic town" involves development of an area of about 70 hectares:

~ 40 ha of residential development

~ 30 ha of infrastructure

 

The options under consideration include reconstruction and construction of new modern residential facilities, as well as facilities of road, office, cultural and social infrastructure, including children's educational institutions, catering and leisure facilities:

- residential buildings for staff (~ 3000 apartments for about 6000 people)

- office buildings (i.e. the offices of companies participating in the Akkuyu NPP project)

- educational training center (ETC)

- public information center (PIC)

- shops, market area, retail outlets

- catering businesses

- points of rendering domestic services

- leisure areas

- schools and kindergartens

- fitness, sports and health centers

- medical center

- cultural centers

- network of roads and parking lots

- landscape parks

- guest house for 1500 people

- utilities

 

According to preliminary estimates, about 250 million US dollars can be invested in the construction of the "atomic town", and its construction can serve as a significant incentive for development of the region.

 

The estimated contribution to GDP provided by the growth in trade (orders/revenues) of companies in various sectors of the economy (including from among the Turkish partners for the construction of the town and Akkuyu NPP) can reach $400 million.

 

The expected increase in tax liabilities may exceed $100 million.

 

So, we can talk about the expected financial effect of about 50 million US dollars in the form of cash flow return on investment in commercial facilities (local stores, shopping and entertainment centers, etc.).

 

It is worth mentioning such social effects as construction of modern residential buildings, creation of transport infrastructure, growth of employment and a general increase in the attractiveness of the region for the tourism industry, business and residential real estate market.

 

With that in mind, we can talk about the expected total socio-economic effect at the level of approximately 630 million US dollars, according to preliminary estimates based on the current development conditions of the region.