(Yonhap Interview) UAE deal ups S. Korea's chance of winning reactor bid from

By Lee Joon-seung
SEOUL, Feb. 2 (Yonhap) -- South Korea's clinching of a US$20 billion deal with
the United Arab Emirates (UAE) to build nuclear power plants has raised its
chances of securing a similar agreement with Turkey, Ankara's envoy to Seoul said
Tuesday.
"The UAE deal will definitely have a positive influence," Ambassador Erdogan
Iscan said in an exclusive interview with Yonhap News Agency.
The envoy said that if Turkey decides to formally open a bid to build nuclear
reactors, Seoul's position would be strong given its proven capabilities and the
long-standing relationship between the two countries.
The comments come shortly after South Korea, buoyed by its UAE agreement reached
late last year, announced ambitions to become one of the top three commercial
builders of atomic reactors by 2030. Government officials here have said the
state-run Korea Electric Power Corp. (KEPCO) wants to make inroads into Turkey
and Jordan.
KEPCO officials said the company is closely watching Turkey's Sinop nuclear plant
project on the Black Sea coast, which could involve building up to four reactors
with a price tag of about $5 billion each.
A career diplomat who was ambassador to Ukraine before arriving in Seoul last
year, Iscan said that by overcoming the challenges posed by French energy
companies -- known to be highly competitive in the nuclear field -- South Korea
has proven its capabilities to the world.
"We were aware that Korea meets the IAEA's criteria to build nuclear reactors for
peaceful purposes, but by winning the recent Middle East tender, our political
and technical confidence in Korea has been proven and acknowledged," he said.
Turkey sent troops under the United Nations flag to assist South Korea during the
1950-53 Korean War, sewing the seeds of their modern relationship. Turkey's
geographical location astride Europe and Asia and similar experience in shaking
off past hardships has bolstered bilateral ties.
The envoy also said that due to controversies raised about the validity of the
bidding process, Turkey has effectively annulled an agreement that gave Russia's
Atomstroyexport the right to build reactors in Akkuyu on the country's
Mediterranean coast. Atomstroyexport was the sole contender and was tapped to
build the country's first reactors in 2008.
"It would not (have been) ethical or legal to go ahead so the authorities
annulled it," Iscan said, making clear that both the Sinop and Akkuyu plants will
be on offer in future bids. "Turkey expects South Korea to be interested in both
tenders."
Should South Korea bid on both and win, the total size of the order could exceed
that of the UAE deal.
Iscan declined to speculate on when the bid might be opened, but stressed the
need for a detailed and "mature" pre-bid consultations; he also emphasized that
reports suggesting that Ankara had already decided award the deals to South Korea
were wrong.
"There cannot be a political decision since such a deal must be an objective
technical decision based on due process," he said.
Turkish President Abdullah Gul is expected to visit Seoul around the middle of
the year, and the two countries could hold talks involving their foreign
ministers and other energy-related officials -- meetings that Iscan hinted would
help the flow of information about the bids.
Turkey has made no secret about its nuclear energy plans. Its economy managed to
pull off an average of 6 percent growth from 2002 through 2008, but with little
natural resources of its own, it must import gas, oil and coal to meet growing
energy needs.
The country gets two-thirds of its natural gas from Russia, a fact that may have
also hindered the Akkuyu bid, as concerns were raised about Turkey becoming too
dependent on one country for its energy.
Other issues that may affect any future bidding process involves opposition by
some Turks about the building of nuclear power plants in a country that is
frequently rocked by earthquakes and financing difficulties.
KEPCO, which initially showed interest in the Akkuyu project, opted not to place
a bid because some requirements set by Ankara were hard to meet at the time.
South Korea, which started commercial nuclear energy production in 1978, said it
hopes to win deals for 80 nuclear reactors worldwide in the next 20 years -- or
about 20 percent of the global market. This would put it in third place after the
United States and France.
South Korea also aims to be totally self-sufficient in the reactor technology
field in the next three years, and has injected 99.6 billion won (US$85.8
million) into the effort since 2006. Presently the country's technology level
stands at 95 percent of global leaders.
Foreign sources including the World Nuclear Association have predicted that about
430 large reactors may be built worldwide by 2030, while up to 1,000 small- and
medium- sized reactors may be constructed by 2050, presenting a large market for
South Korean atomic energy companies.
yonngong@yna.co.kr
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