Press Information

Broad Framework Reached with Government of Turkey on Commercial Agreement Relating to Sinop Nuclear Power Plant Project


Tokyo, October 30, 2013 - On October 29 the international consortium of which Mitsubishi Heavy Industries, Ltd. (MHI) is a member reached a broad framework of agreement with the Government of the Republic of Turkey on a commercial agreement relating to the Sinop nuclear power plant (NPP) project being forwarded by Turkey. The agreement culminates negotiations that have been under way since Japan acquired preferential negotiating rights to the Sinop project in May of this year. To mark the occasion, Prime Minister Shinzo Abe, who is currently on a visit to Turkey, and Turkish Prime Minister Recep Tayyip Erdogan signed a joint declaration on cooperation between Japan and Turkey in the fields of nuclear energy and technology.

The Sinop project calls for the construction of four NPPs in the Sinop area of the Black Sea coast. The commercial agreement at hand is a Host Government Agreement (HGA) delineating such matters as the scope of cooperation for project implementation and a feasibility study framework. Conclusion of a formal agreement between the consortium and the Government of Turkey is expected after authorization from the Grand National Assembly of Turkey.

Once the feasibility study has been completed, MHI and the other members of the international consortium will draw up specific project terms. Negotiations will also proceed toward arriving at specifics relating to the project's financing framework, power sales contracts, etc.

Plans for the Sinop project call for the adoption of the "ATMEA1," a state-of-the-art nuclear reactor developed by ATMEA, a joint venture between MHI and France's AREVA. The ATMEA1 is a Generation III+ type pressurized water reactor (PWR) with a capacity in the 1,100 MWe (megawatts electrical) class recognized for its extremely high reliability. It has already been positively evaluated by the French Nuclear Safety Authority (ASN) as well as the Canadian Nuclear Safety Commission.

MHI intends to apply its full resources to providing Turkey with the newest and most advanced nuclear technologies, with highest priority accorded to safety. In doing so, the company aims to make broad and ongoing contributions to Turkey's economic and industrial growth.
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