Infrastructure Assessment as Viewed by Technology Holders

1. Infrastructure Assessment as Viewed by Technology Holders IAEA Technical Meeting December 10-12, 2008 R. Godden UNRESTRICTED

2. Infrastructure Assessment Outline • From technology holders perspective what assessments are completed prior to decision to participate in bid invitation • How can technology holders help and support a NEPIO and its process to ensure a successful bid process • How can overall risks be lowered UNRESTRICTED

3. Infrastructure Assessment Project Risks • Infrastructure • Completion • Technology • Regulatory • Supply Chain • Construction • Operation • Market UNRESTRICTED

4. Phases for Decision Functions of an NEPIO in Phases 1 and 2 Industrial Fuel Cycle Procurement Waste Emergency Planning Security & Physical Environmental Stakeholder Resources Grid and Site Facilities Regulatory Legislative Radiation Protection Management Safeguards National Position Funding Safety UNRESTRICTED

5. Infrastructure Assessment National Position • There should be confidence in the market for the vendors and the investors/lenders • Government commitment to safe, secure and peaceful implementation • Public consultative process underway • NEPIO established with clear charter and adequate funding and resources • Bilateral agreements in place with vendor countries UNRESTRICTED

6. Infrastructure Assessment Safety • Evidence that international safety standards are well accepted • Training process for regulators, operators and specialists are well defined • Local laws and programs are support the health and safety of workers during the construction phase UNRESTRICTED

7. Infrastructure Assessment Management • The Bid process is managed by experienced personnel • Clear description of how the bid is to be evaluated • Country specific requirements • Technology assessment • Financial, legal, and commercial aspects • There should be adequate time allowed for vendors to submit comprehensive bids UNRESTRICTED

8. Infrastructure Assessment Funding and Financing • Funding model of the project is very important to vendors, lenders and investors • Upfront assessment of the ability of the owner to finance the NPP • Financing of foreign content • Local financing requirements • Export credits • Need for Sovereign Guarantees UNRESTRICTED

9. Infrastructure Assessment Legislative • All relevant legislative requirements have been adopted • Nuclear Law is in place • Legislation pertaining to nuclear power program in place: • Intellectual Property protection • Use of local land for site • Foreign investment • Taxation • If needed, financial guarantees UNRESTRICTED

10. Infrastructure Assessment Regulatory • Establishment of regulatory framework • Use of qualified personnel through consultants, other nuclear regulatory bodies and international organizations • Vendors and lenders/investors need to clearly see that the licensing process is well defined and achievable • Delays in regulatory/licensing process may add to overall cost of project UNRESTRICTED

11. Start of Process “Regulatory Readiness” In-Service Fully staffed Regulatory Organization Staffing Can use consultants Regulatory Staffing UNRESTRICTED

12. Infrastructure Assessment Grid • The size of the grid and the and the expected additional capacity should be understood • Any required enhancements agreed by owner/government • Grid specifications need to clearly included in the Bid Site and Supporting Facilities • All siting requirements have been assessed and any political, legal or public acceptance issues can be resolved • Clear delineation of responsibility for access, security, local infrastructure are outlined in Bid document UNRESTRICTED

13. Infrastructure Assessment Human Resources • Plans that address adequate staffing and training for all areas including regulatory, bid preparation and assessment, support during construction phase and operations and maintenance • Legislation and programs that support the health and safety of workers during construction, commissioning and operations Environmental Protection • Environmental Impact Assessment completed. • Vendors must understand environmental sensitivities during construction phase UNRESTRICTED

14. Infrastructure Assessment Industrial Involvement • The upfront assessment of the local capacity to support implementation especially in the construction area • Use of local resources will lower overall cost of implementation • More economical to purchase a technology that can be aligned with local resources rather than a “black box” approach • Procurement/local supply of equipment and materials • Selected vendor can assist with development of Quality Assurance and Control process and evaluation of local resources UNRESTRICTED

15. Infrastructure Assessment Procurement • The team should be experienced and qualified to evaluate the bids and should have good knowledge of: • Technology Assessment • Financing model is important to vendors. Who takes risk? • Schedules and delivery times • Transportation, insurance, taxes and customs • Commercial terms and conditions • Upfront discussions with lenders, vendors and other international bid evaluation teams can help this process UNRESTRICTED

16. Infrastructure Assessment Summary • Vendors will assess that key issues have been addressed such as: • Political and government support is present • Funding of the project is defined • Clear regulatory environment is present • Environmental and Safety programs are in place • Commercial terms and conditions are clear • Technology assessment criteria is established • Local infrastructure including construction sources have been assessed • Vendors can work with an NEPIO and other support areas in the early phase to ensure these issues are addressed UNRESTRICTED

17. Construction Permit NEPIO Activity Pre-Project Pre-Construction Construction In-Service Defines and mitigates risk Project Phases UNRESTRICTED

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