Akkuyu NPP Power Generation JSC

1. Nuclear Inter Jura 2014 ROSATOM RosatomState Nuclear Corporation Legal aspects of the BOO model when developing new nuclear power plant and construction projects Ilya Smirnov, Deputy CEO, General Counsel Olga Kirillova, Senior Legal Counsel Akkuyu NPP Power Generation JSC 21 October 2014

2. Factual background AKKUYU NGS AŞ ROSATOM 435 nuclear power plant units are under operation around the world 72 nuclear power plant units are under construction around the world (10 units – since 2013) Only one NPP (4 units) is under construction under the BOO model

3. TOPICS COVERED AKKUYU NGS AŞ ROSATOM

4. Newcomers AKKUYU NGS AŞ ROSATOM which way to follow Turkey Bangladesh Vietnam Jordan Nigeria Belarus Kazakhstan Egypt …

5. Akkuyu Nuclear Power Plant is the First Rosatom BOO Construction Project Outside Russia AKKUYU NGS AŞ ROSATOM Akkuyu Project Features • First Nuclear Power Plant in Turkey • First RosatomВОО (build-own-operate) project. Under the IGA, Rosatom is responsible for engineering, construction, operation and maintenance of the plant. • Legal basis: Intergovernmental Agreement, May 12, 2010 • Project design: AES-2006 (VVER-1200) • Total capacity: 4,800 MW. (4 x 1200 MW) • Implementation period: 2011-2023 • Total cost ~ $ 20 bln • Power Purchase Agreement for 15 years, fixed price terms • Support of the Russian and Turkish Governments • Maximization of Turkish personnel involvement in construction and operation of the plant. • Job creation potential – up to 10 000 for the construction only Akkuyu site, Turkey

6. Project Cooperation Between Russia and Turkey Covers a Wide Range of NPP Related Construction, Operation and Infrastructure Issues AKKUYU NGS AŞ ROSATOM Russian / PC responsibilities Joint responsibilities Turkish responsibilities Construction and assembly works NPP engineering, design field supervision Site allocation Construction management/ Supervision /Startup and Commissioning Infrastructure development, grid connection Physical protection Emergency planning Design documentation Site infrastructure Nuclear island and other special equipment and materials Public outreach Fuel supply Spent fuel management (subject to a separate IGA to be concluded) Ownership of NPP until decommission Operation, maintenance and upgrade Wholesale of electricity Decommissioning and decontamination Financing Nuclear liability insurance Radioactive waste disposal / treatment

7. Project organization structure AKKUYU NGS AŞ ROSATOM Rosatom State Corporation Board of Directors (shareholders) Project sponsor PC management General responsibility for Project implementation Rusatom Overseas CJSC Shareholder/ developer Akkuyu NPP JSC Tailor-made JSC incorporated in Turkey. Carries functions of customer, license applicant, NPP owner and GR coordinator in Turkey Operator, Owner of the NPP and electricity produced OJSC «INTERRAO Worley Parsons» Rosenergoatom Concern OJSC Owner’s Engineer* • Technical expertise • Cost control • Schedule control • Quality control Technical customer Licensing consultant • Development of technical assignment for the design documentation • Technical acceptance of equipment and services at all stages of project commissioning, NPP operation EPC 3** Turbine island EPC 2** Nuclear island EPC 1** Hydrotechnical EPC 4** Auxiliary buildings * Tender will be tentatively run in2014 ** EPC structure to be further discussed 7

8. Paid Capital – 4.36 Billion TL (source – Russian budget) Equity Structure AKKUYU NGS AŞ ROSATOM Current Shareholders of AKKUYU NPP JSC Subject to consent to the Turkish Party under IGA 8

9. Stagesof the project • Single responsibility of the “Project company” for all stages of the project and deadlines 4 stage 1 stage 2 stage 3 stage 13/12/10 2017 03/11 1st concrete Akkuyu NPP JSC registration 2083 2017 Start site survey Commissioning 2023 – 1 unit 2024 – 2 unit 2025 – 3 unit 2026 – 4 unit Construction license, Electricity generation license 9

10. Lessons learned: Regulatory 10

11. Lessons learned: Regulatory SOLUTIONS 11

12. Lessons learned: Host Country Undertakings Challenges No responsibility of the host country for Issues touched upon by the IGA but referred to separate IGA’s that may be concluded in the future Reprocessing spent fuel of Russian origin in the RF Meeting deadlines in decision making which may lead to schedule delays Cost overruns in case of delayed construction Cooperation regarding the nuclear fuel cycle 12

13. Lessons learned: Host Country Undertakings 13

14. Lessons learned: Amending local laws 14

15. Strategy of Operating the NPP Open Issues AKKUYU NGS AŞ ROSATOM 15

16. Strategy of Operating the NPP In-house vs. Outsource AKKUYU NGS AŞ ROSATOM • Own Operating Personnel • Outsourced Services (while retaining knowledgeable customer capability): • Physical Protection (except for own Security Service) • Administrative and supporting functions • Repair and maintenance work, replacement of spent fuel • Transportation logistics • Retail sale of electricity • Rad waste management • Training of personnel • Metrology and monitoring 16

17. HR Strategy General Considerations AKKUYU NGS AŞ ROSATOM 17

18. HR Strategy Open Issues AKKUYU NGS AŞ ROSATOM 18

19. İlginiz için çok teşekkür ederim!Thank you for your attention!www.akkunpp.com AKKUYU NGS AŞ ROSATOM AKKUYU NGS AŞ