The contract for the construction of a nuclear power plant will be delayed. Does this threaten the timely implementation of the investment?
— Today, there is no chance that negotiations on the EPC (Engineering, Procurement, Construction – contract for the construction of the first Polish nuclear power plant – ed.) will be completed by the end of the second quarter of this year, as originally expected. There are still many issues on which the parties have divergent positions – a source close to the negotiation process with the Americans tells us.
As he points out, it is planned to extend the validity of the current bridge agreement (EDA) until the end of the year in order “to be able to negotiate calmly.”
— The quality of the contract is crucial here. There is no point or need to speed things up, say the people responsible for the talks. They also ensure that there is no risk of delays in the construction of the power plant, because the currently applicable EDA (Engineering Development Agreement – ed.) allows for the implementation of all necessary works.
The obstacle to the early finalization of negotiations on the EPC contract is, as we hear, the need to resolve several difficult issues.
One of them are the limits of liability, i.e. the amount of compensation.
The second controversial issue concerns project integration. — The previous government chose Westinghouse and Bechtel, which are difficult to integrate. Westinghouse supplies the reactor, and Bechtel is responsible for building the plant. This is reminiscent of a situation where one company builds the foundation, the other builds the walls, and no one wants to take responsibility for the whole thing. The Polish side, however, expects an integrated product – explains our interlocutor.
He also emphasizes: – The Czechs withdrew their offer in the tender two years ago because the Americans set conditions that were unacceptable to an experienced investor, such as the Czech energy company ČEZ. Some offered to deliver the reactor, others to build it, without answering the question of who would be responsible for integrating these two parts.
– Meanwhile, the previous Polish government, despite its lack of experience in nuclear projects, decided on this rather risky solution – says our source.
Another controversial issue concerns what law will apply to the contract. — Americans do not want to agree to Polish law applying to this agreement. The Polish side is seeking this – he reports.
If not by the end of June, as announced so far, when can we expect the EPC contract to be signed? According to our interlocutors, in the second half of the year.
Read also: Bechtel aims at further investments. Atom is not everything
— Polish Nuclear Power Plants will not be ready by the middle of the year. The EPC will be signed at a politically convenient time. The decision on the announcement date will be made at the highest levels in Poland and the USA, says another of our interlocutors close to the negotiation process.
The second nuclear power plant in the spotlight
The first Polish-French intergovernmental summit organized in Gdańsk on April 20 became an opportunity to make important declarations regarding the second nuclear power plant planned by the Polish government.
— We are before the decision on the location of the future second nuclear power plant in Poland. We are convinced that in order to be energy secure, it is essential to invest in the nuclear sector, including a second large nuclear power plant. We are talking here about these large, traditional reactors, because we are also conducting talks and preparatory work that can accelerate the so-called program. SMRs, i.e. these small reactors, but this is the melody of the future, taking into account the technological possibilities – said Prime Minister Donald Tusk at a conference with President Emmanuel Macron.
Read also: Will the French umbrella cover Poland? We check profits and costs [ANALIZA]
Our interlocutors admit that the summit confirmed that the French are very interested in the contract for the construction of a second power plant. Donald Tusk's statement is considered groundbreaking. – For the first time this term, he clearly stated that there will be a second nuclear power plant – notes one of our interlocutors.
Another source admits that “for political reasons, something will have to be promised next year regarding the second nuclear power plant.” Parliamentary elections will be held in Poland in the fall of 2027, and, for example, President Karol Nawrocki's entourage strongly supports the development of nuclear energy on the Vistula River, so the current team will not want to give up on this matter.
The initial stage of work on selecting a partner to build the second nuclear weapon has just been completed. The government – as part of the so-called dialogue with the market – he talked to the Americans, French and Canadians on this matter.
A competitive procedure to select this partner should begin in the coming months.
Plans for the development of nuclear energy in Poland, with investment schedules for the first and second power plants, are contained in a government document called the Polish Nuclear Energy Program (PPEJ). The Ministry of Energy consulted on its update project last year. According to one of our sources, the ministry will soon present the PPEJ in a form that will be accepted by the government.
This document will answer the key question – whether PEJ or PGE will be responsible for conducting the competitive procedure for the selection of a partner for the second power plant.
— Polish Nuclear Power Plants should remain the host of the competitive dialogue regarding the selection of a partner for the construction of the second power plant. PGE's participation is possiblewhich is justified, among others, the fact that this company is already present in locations where the second power plant is planned to be built – announces our source.
As he points out, “it will never be specified who will ultimately be the investor in the second nuclear power plant.” In the case of the first power plant, the investor is PEJ.
The PEJ Management Board has been supplemented
In April, the supervisory board of PEJ elected the former vice-president of Warsaw, Michał Olszewski, as vice-president of the company. He replaced Piotr Piela on the company's management board. We were the first to write about his dismissal from this position in March.
According to our sources, Olszewski's function is to be strictly operational. The newly elected vice-president is responsible for the accompanying infrastructure, which is the most critical topic that requires catching up. This is why there was a change in management. The other areas of responsibility of the new management board member are local content and relations with local government at the regional and local level.
Concerns about local content
Our interlocutors close to the construction industry maintain concerns about the participation of domestic contractors and subcontractors, i.e. local content, in the case of the first power plant.
Dr. Damian Kaźmierczak, vice-president of the Polish Association of Construction Employers, tells us that – Americans present every, even the smallest and least complicated order for Polish companies as proof of their will to cooperate closely with local business.
Read also: A huge wave of investment is coming. Will Poland finally have champions?
— I do not deny that from the perspective of specific companies, such orders are lucrative and can contribute to their development, but the ambitions of most construction companies reach much higher. Polish companies want to build the most difficult and complicated elements of the power plant in order to take advantage of the unique opportunity to acquire new competences and not get stuck at the lowest levels of the value chain of the Choczew project. The role of the Polish government is to ensure that such a scenario is never allowed to occur, our interlocutor emphasizes.
