TEPCO to withdraw from Vietnam nuclear plant project
Tokyo Electric Power Co. (TEPCO) is set to
withdraw from an overseas nuclear power plant construction project to
concentrate on the crisis at the tsunami-hit Fukushima No. 1 Nuclear
Power Plant, the Mainichi Shimbun has learned.
TEPCO decided to exit a project by International Nuclear Energy Development of Japan Co. (JINED) to construct nuclear plants in Vietnam. The decision is likely to force the government to review its policy of promoting nuclear plant exports.
JINED was set up in October 2010 on the initiative of the Ministry of Economy, Trade and Industry (METI), with the primary aim of winning a contract to build nuclear power stations in Vietnam.
It is owned by nine electric power companies, nuclear plant manufacturers Hitachi Ltd. and Mitsubishi Heavy Industries Ltd. and Innovation Network Corp. of Japan, a public-private joint venture.
TEPCO, which has a 20 percent stake in JINED, is the top shareholder, and had planned to operate and service nuclear reactors in Vietnam.
However, TEPCO's newly appointed president, Naomi Hirose, said the company has no choice but to abandon the plan due to the Fukushima nuclear crisis.
"TEPCO nuclear reactor engineers must concentrate on stabilizing and decommissioning the reactors at the plant over a long period. It's impossible to place priority on exporting nuclear plants if we are sacrificing the response to the crisis," he said.
Though it will maintain its stake in JINED, TEPCO will not dispatch engineers to Vietnam or give advice to workers at the project site.
In a separate nuclear plant construction project in the United Arab Emirates in 2009, Japanese bidders were defeated by their South Korean counterparts, which offered a price about 20 percent lower.
Industry insiders say the construction of nuclear power stations in quake-prone Japan is more expensive because of stepped up safety measures. Therefore, METI proposed that contractors offer to not only build nuclear plants but also to operate and service them in a package deal to make up for their higher prices.
JINED's winning of the contract in Vietnam is widely regarded as an example of successful marketing, and the company had intended to continue exporting nuclear power stations with cooperation from TEPCO.
However, since TEPCO has decided not to participate in such projects, it is feared Japanese companies will lose their edge.
The government is desperate to maintain JINED's superiority.
"We're considering asking Kansai Electric Power Co. to replace TEPCO as leader of the project," a METI source said.
If Japan fails to compensate for TEPCO's withdrawal, the Vietnamese government could cancel its contract with JINED, citing a change in contract terms, government sources said.
http://mainichi.jp/english/english/newsselect/news/20120628p2a00m0na010000c.html
TEPCO decided to exit a project by International Nuclear Energy Development of Japan Co. (JINED) to construct nuclear plants in Vietnam. The decision is likely to force the government to review its policy of promoting nuclear plant exports.
JINED was set up in October 2010 on the initiative of the Ministry of Economy, Trade and Industry (METI), with the primary aim of winning a contract to build nuclear power stations in Vietnam.
It is owned by nine electric power companies, nuclear plant manufacturers Hitachi Ltd. and Mitsubishi Heavy Industries Ltd. and Innovation Network Corp. of Japan, a public-private joint venture.
TEPCO, which has a 20 percent stake in JINED, is the top shareholder, and had planned to operate and service nuclear reactors in Vietnam.
However, TEPCO's newly appointed president, Naomi Hirose, said the company has no choice but to abandon the plan due to the Fukushima nuclear crisis.
"TEPCO nuclear reactor engineers must concentrate on stabilizing and decommissioning the reactors at the plant over a long period. It's impossible to place priority on exporting nuclear plants if we are sacrificing the response to the crisis," he said.
Though it will maintain its stake in JINED, TEPCO will not dispatch engineers to Vietnam or give advice to workers at the project site.
In a separate nuclear plant construction project in the United Arab Emirates in 2009, Japanese bidders were defeated by their South Korean counterparts, which offered a price about 20 percent lower.
Industry insiders say the construction of nuclear power stations in quake-prone Japan is more expensive because of stepped up safety measures. Therefore, METI proposed that contractors offer to not only build nuclear plants but also to operate and service them in a package deal to make up for their higher prices.
JINED's winning of the contract in Vietnam is widely regarded as an example of successful marketing, and the company had intended to continue exporting nuclear power stations with cooperation from TEPCO.
However, since TEPCO has decided not to participate in such projects, it is feared Japanese companies will lose their edge.
The government is desperate to maintain JINED's superiority.
"We're considering asking Kansai Electric Power Co. to replace TEPCO as leader of the project," a METI source said.
If Japan fails to compensate for TEPCO's withdrawal, the Vietnamese government could cancel its contract with JINED, citing a change in contract terms, government sources said.
http://mainichi.jp/english/english/newsselect/news/20120628p2a00m0na010000c.html
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