Baltic companies could vie for one third of new nuclear facility’s construction and installation works

A business plan for Visaginas Nuclear Power Plant (VAE), which was endorsed by the government and handed over to the Seimas (parliament) last week, says that these figures are preliminary and may change as the project evolves.

“These results are preliminary and cannot replace actual actions by the technology supplier when looking for subcontractors because potential subcontractors would be subject to both specific and precise requirements. Moreover, the behavior by potential subcontractors during a tender may actually differ from what they said during the survey,” the business plan reads.

A preliminary estimate of VAE costs shows that a nuclear steam supply system, which might be worth up to 1.4 billion euros, would cost the most. The system would be supplied by Japan’s Hitachi, a strategic investor in the new nuclear facility.

Designing and licensing would cost 1.1 billion euros and the companies from the Baltic region could carry out one-fourth of those works (worth EUR 275 m). The facility’s construction works alone are estimated to cost some 1 billion euros and the companies from the Baltic region could carry out 70 percent of those works (worth EUR 700 m).

“The capacities of the region’s construction sector are sufficient to ensure continuous construction of Visaginas Nuclear Power Plant, which will last approximately five years,” the business plan says.

The turbine and mechanical equipment are estimated to cost 650 million euros, and the regional companies could carry out 35 percent of those works (EUR 227 m). Control testing and management could cost 300 million euros, and the companies from the Baltic region could get 35 percent of those orders (EUR 105 m). The Baltic countries could also vie for 35 percent (EUR 193 m) of the remaining works worth 550 million euros.

The preliminary estimate has been based on an assumption that the construction costs would at most total 5 billion euros, the business plan says.

Deloitte Lietuva assessed the possibilities of the regional supply chain to participate in the VAE project back in 2010.

Lithuania hopes to build the new nuclear power plant in 2020-2022 in cooperation with Japan’s Hitachi as a strategic investor as well as with energy companies from three Baltic countries. The new nuclear facility project costs are estimated to range between 4.6 billion euros and 5.2 billion euros.