Keeping an eye on Temelín

It has been called the tender of the century: a deal estimated to be worth 500 billion Kč ($25.1 billion) to build two nuclear reactors in Temelín, south Bohemia, with the option to build an additional unit in Dukovany and one or two reactors in Jaslovské Bohunice, Slovakia. The tender carries with it major geo-political connotations and will come down to a government decision between U.S. company Westinghouse, French company Areva and a Russian-Czech joint venture between Škoda JS and AtomStroyExport.

Last week, U.S. Under Secretary for Trade Francisco Sanchez visited the Czech Republic to support Westinghouse's bid. Sanchez stressed that he came on direct order of U.S. President Barack Obama, whom Sanchez said was "monitoring very closely the completion of the Temelín deal."

On June 21, the caretaker government of Jan Fischer appointed Václav Bartuška to the new post of government commissioner for the completion of the Temelín nuclear power plant. As Bartuška is a vocal critic of allowing too much Russian influence in the Czech Republic's sensitive energy sector, his appointment is seen by some, including the Russians, as a move that could cloud Russian involvement in the project. Russian daily Kommersant reported July 14 that the new center-right government coalition will do its utmost to eliminate the Russian firm AtomStroyExport from the tender.

Bartuška, who also serves as Czech ambassador at large for energy security, sat down with The Prague Post to discuss both the business and political aspects of the tender.

The Prague Post: Could you briefly go through the pros and cons of Westinghouse's, Areva's and AtomStroyExport's proposals?

Václav Bartuška: There is now a tender that will take another one and a half years. All three have their pros and cons, but I will not elaborate on that any further because that would be simply incorrect.

What I am doing is talking to all three companies about their ability to deliver, not just to win a bid but build the nuclear reactors. I think all three would have the ability to build it, and all three would have some difficulties. There is no real difference among the three, honestly. AtomStroyExport has opened a few reactors over the past 20 years, but the truth is that all three have a shortage of some specific professions, mostly in terms of manual professions.

The offers for the tender will come in the spring and the companies will [name their prices]. We could end up in a situation with nobody being chosen if the price is too high.

TPP: Would Škoda JS and AtomStroyExport create maximum job opportunities for Czech companies?

VB: All three are in a position where they promise everything they can, but the truth is, by law, you cannot demand the participation of your [Czech] companies in the winning bid.

TPP: How important in the Temelín tender is acquiring nuclear expertise for Czech businesses and workers?

VB: The real question is how the Czech Republic can keep and improve on its substantial nuclear know-how because, whether we like it or not, nuclear power is here to say. To keep this know-how in the Czech Republic, you need Czech companies in charge of the construction of the in-blocks to know what is going on and how to maintain the blocks. This is what I call technology transfer, and this is the know-how that I hope will come to this country with the winning bid, whoever it is. It is also important for our research centers to remain in the know and to be part of this because fourth-generation nuclear energy will probably be one of the biggest businesses of the 21st century.

TPP: Should geo-political factors be taken into consideration when deciding on which company should win the tender?

VB: Nowhere in the world is nuclear solely a business. You always have governments involved, and governments always make decisions even in countries where it is purely a private investment. Definitely, strategic thinking will have a say in decision making, but so will the price, transfer of nuclear know-how and participation of Czech companies in the construction of the nuclear power plant.

TPP: In your position as Czech ambassador at large for energy security, you have spoken sharply against furthering the country's energy dependency on Russia. In your new position as government representative, have you been in any way reprimanded by the government for having excessively anti-Russian views?

VB: It has never happened. My position has not changed. I was the only one who wanted the Russians expelled.

TPP: Why did you feel the Russians should be expelled?

VB: I still feel that we should have diversification of supplies, but at the same time, if the government doesn't think so, I respect the prevailing view.

TPP: Why do you feel diversification of energy suppliers is so important?

VB: Diversification means that you are not fully dependent on one producer; it makes commercial, not just political, sense. The reason the Czech Republic pays less for its gas than Slovakia is because we have other more accessible gas coming to us, so we cannot be put in the same position as Slovakia.

TPP: Has the United States' lack of an ambassador for nearly the two years affected Westinghouse's ability to lobby for the tender?

VB: The fact that the United States for one and a half years did not have an ambassador in Prague is a very bad sign, and of course it greatly hurts the prospects of any American company trying to do something in this country. Ever since the invention of diplomatic relations, having an ambassador meant respect. If there is a country with you in NATO, your soldiers are dying with their soldiers in Afghanistan, and you don't care enough to send an ambassador there for one and a half years, I think it's a bad sign. I have said it frankly to my American friends. I simply think it's inexplicable, and they are shooting themselves in the foot.

TPP: You previously said the Temelín decision will determine whether the Czech Republic looks east to Russia or toward the European Union. Why do you think the Temelín decision will have an impact on the future orientation of the Czech Republic?

VB: If the Czech Republic chooses AtomStroyExport, it will definitely be perceived as looking east by outside observers. People judge us by symbols and also by signs. We are members of NATO and the European Union. Joining a club is one thing, but being an effective and good member is a different thing. Efforts must be made to keep these clubs credible.

TPP: Your appointment is seen by some as an effort to cloud the prospects of Russian involvement in the Temelín project. Do you see this assessment of you being a Russophobe unfair?

VB: I love Russia. I speak Russian fluently, and I know Russia well. I also think this country belongs in the West and that it is a European country. I have spent more time in Russia than most people in this country. I have spent time in places in Russia that nobody wants to be in. If that makes me a Russophobe, then so be it.

TPP: In the short- to midterm, what energy mix would you promote for the Czech Republic?

VB: The No. 1 thing is to build interconnections with our neighbors to be really intertwined. They are not that expensive; they make Europe connected and help the Continent stand. Energy needs are far greater than we care to admit.

Cillian O'Donoghue can be reached at
codonoghue@praguepost.com