TVEL, a Russian nuclear energy concern, has beaten Western competitors to win a government bid to build a Ukrainian nuclear fuel plant.
Under the provisional deal, TVEL will invest about $100 million to construct the plant.The international tender was the first in Ukraine's large and investment-starved energy sector. Westinghouse and Asea Brown Boveri, a Swiss-Swedish engineering concern, also submitted bids when the tender closed in October.
But in announcing the result on Friday, Ukrainian officials cited the lower price offered by TVEL along with the promised Russian government guarantee to provide and enrich natural uranium when the plant begins operations, possibly as soon as this year.
The plant, which could be finished within four years, will assemble nuclear fuel rods made specifically for Ukraine's VVER-1000 reactors, the most recent Soviet-designed model.
Although Ukraine has substantial uranium deposits, the rods will be enriched in Russia. Kiev lacks the means and has no need to construct a full-cycle nuclear fuel enrichment plant, which could cost $2 billion.
The factory is intended to lessen complete dependence on Russian fuel rod supplies.
Foreign investors are cautiously optimistic Ukraine can come up with the financing needed to carry out its stated intention to expand the use of nuclear power.
Ukraine currently operates 11 VVER-1000s and four more are under construction. With the Chernobyl plant possibly slated for closure by 2000, the Kiev government wants to upgrade the other reactors.
(Distributed by Scripps Howard News Service.)