|Site Selection/ Characterization||Program planning & Feasibility studies||Prepare Bid/ Contract specifications||Contract negotiation||Design Phase / Apply for Construction License||Preparation for operation||Construction oversight / Commissioning|
Asymmetric information and lack of experience in formulating contracts for nuclear power plants
A contract for a nuclear power plant can consist of thousands and thousands of pages. The party understanding the substance and content better has more leverage in negotiations. As plant vendors have decades of experience from a large number of projects, the Owner-Operator (or NEPIO) in a newcomer country may be at a disadvantage. To overcome this disadvantage, the Owner-Operator will need to build up its competence in nuclear technology and licensing, as well as its capability to negotiate the legal and commercial terms for a feasible contract.
Fortum´s Value Proposition
Fortum has been involved in contract negotiations with several plant vendors in various contexts. We understand the challenges of a newbuild project, including the special characteristics of first-of-a-kind technologies. We can identify the typical pitfalls and make use of our lessons learned in the contract negotiations.
Due to our technical excellence in all disciplines and Owner-Operator experience, the Customer will understand the full effect of technical as well as legal and commercial requirements on the project and over the lifecycle of the plant.