The CANDU Syndrome:

Canada's Bid to Export Nuclear Reactors to Turkey


by David H. Martin
of Nuclear Awareness Project
for the Campaign for Nuclear Phaseout



© copyright September 1997

Campaign for Nuclear Phaseout
Campagne contre l'expansion du nucléaire

1 rue Nicholas Street, #412
Ottawa, Ontario, Canada K1N 7B7
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Printed copies of
The CANDU Syndrome:
Canada's Bid to Export Nuclear Reactors to Turkey
are available from the Campaign for Nuclear Phaseout.

ISBN: 1-896863-03-5


Part Four - Footnotes



FOOTNOTES

    • Ontario Hydro's Douglas Point reactor was shut down in 1984;
    • the NPD reactor was shut down in 1987;
    • the four Pickering "A" reactors will be shut down in December 1997;
    • Bruce "A" reactor 2 was shut down in 1995;
    • and Bruce "A" reactors 1, 3 and 4 will be shut down in March 1998.

  2. Ontario Hydro's Darlington Nuclear Station (consisting of four 881 MWe reactors) was ordered in 1978.

  3. Ontario Hydro News Release: Ontario Hydro moving ahead on major overhaul of its production facilities, August 13, 1997.

  4. In-service dates for the reactors to be shut down were:
    • Bruce 1, September 1977;
    • Bruce 2, September 1977;
    • Bruce 3, February 1978;
    • Bruce 4, January 1979;
    • Pickering 1, July 1971;
    • Pickering 2, December 1971;
    • Pickering 3, June 1972;
    • Pickering 4, June 1973.

  5. The Liberal New Brunswick government of Premier Frank McKenna, originally elected in 1987, was on record as saying that it wanted AECL to finance the entire cost of a second reactor: CP, "New Brunswick ponders second reactor", Globe & Mail, October 15, 1990, p. B6.

  6. N. Lenssen & C. Flavin, "Meltdown", World Watch, May/June 1996, p. 24

  7. Barrie McKenna, "US nuclear plight may be omen for Canada", Globe & Mail, August 25, 1997, pp. B1-B2.

  8. N. Lenssen & C. Flavin, ibid., p. 25.

  9. "Timing, manner of Superphénix death are not at all certain", Nucleonics, June 26, 1997, pp. 13-15.

  10. N. Lenssen & C. Flavin, ibid., p. 26.

  11. Reid Morden, "CANDU Exports and Opportunities", Canadian Nuclear Society Bulletin, Vol. 18, No. 1, May, 1997, p. 26.

  12. "Chrétien government pro-nuclear", Nucleonics Week, November 11, 1993, p. 15.

  13. The federal department was then known as Energy, Mines and Resources (EMR), and it is now known as Natural Resources Canada (NRCan).

  14. Diane Francis, "Chrétien backs nuclear project", Toronto Star, May 25, 1984.

  15. Terence Corcoran, "The CANDU Man", Globe & Mail, November 29, 1996, p. B2.

  16. Dr. Rey Pagtakhan, MP, "PM Supports Nuclear", February 10, 1997, Canadian Nuclear Society Bulletin, Vol. 18. No. 1. p. 24.

  17. Shawn McCarthy, "Chinese premier's visit boosts deal on reactors", Toronto Star, October 14, 1995, p. A8.

  18. CP, "Canadian Nuke Plant safe, Romanians say", Halifax Daily News, April 18, 1996.

  19. CP, "McLellan presses China on CANDU deal", Globe & Mail, May 22, 1996, p. B9.

  20. Ray Silver, "Canada, China move closer to deal for two CANDU reactors at Qinshan", Nucleonics Week, July 18, 1996, p. 4.

  21. David Crane, "Reactor sale worth $4 billion", Toronto Star, pp. B1 & B9.

  22. David Crane, ibid.

  23. Nixon is also the father of the Hon. Jane Stewart, federal Minister of Indian Affairs and Northern Development. Ms. Stewart is the former Minister of National Revenue.

  24. Neville Nankivell, "AECL hit hard by more trouble at the top", Financial Post, April 13, 1994, p. 4.

  25. D. Martin & D. Argue, Nuclear Budget Watch 1997, Campaign for Nuclear Phaseout, February 1997.

  26. Richard Knox, "1996 load factors analysed by NSSS vendors", Nuclear Engineering International, July 1997, pp. 39-40.

  27. Presumably including theft as well as technical losses.

  28. Observatoire Méditerranéen de l'Énergie, in cooperation with MERKAT (OME/MERKAT), Report on the Development of the Electricity Sector in Turkey, Conference "Energy Forum '97", Ankara, April 7-8 1997, p. 33.

  29. OME/MERKAT, ibid., p. 20.

  30. OME/MERKAT, ibid., p. 28.

  31. OME/MERKAT, ibid., p. 24.

    • BOO = Build, own and operate;
    • BOT = Build, operate and transfer.
    BOT is often interpreted to mean "Build, own, and transfer", but the Turks have modified this formula through the creation of a joint venture entity between the private sector company and TEAS. Neither TEAS nor the Turkish government provide any financing, even for local costs.

    Under a BOT contract, ownership of the facility is transferred back to Turkey at no cost, at the end of an agreed period -- typically the construction period plus 15 to 20 years of operation. BOO is a type of privatization, since there is no transfer, and the owner has the advantage of retaining the residual value of the project.

  33. Greenpeace, Turkey at an energy cross-roads, Summary Report, June 1997, pp. 2-3.

  34. The CNRTC is located on a 3,200 acre site on the shores of Kucuk Cekmece Lake outside of Istanbul.

  35. Thijs de la Court, Deborah Pick & Daniel Nordquist, The Nuclear Fix: A Guide to Nuclear Activities in the Third World, World Information Service on Energy, 1982, p. 100.

  36. Nuclear Research Reactors in the World, Reference Data Series No. 3, International Atomic Energy Agency, Vienna, 1995.

  37. IAEA, Ibid.

  38. Kenan Unlu, "Turks take steps to revive their nuclear programme", Nuclear Engineering International, January 1995, p. 16.

  39. Mustafa Kibaroglu, "Turkey's Quest for Peaceful Nuclear Power", The Non-Proliferation Review, Spring-Summer 1997, p. 34.

  40. Unlu, Ibid.

  41. A coup by the Joint Chiefs of Staff took place on September 12, 1980, and national elections were not held again until November 1983. Previous military coups had taken place on May 27, 1960, and March 12, 1971.

  42. The objectives of TAEA are both promotional and regulatory in nature. They are:
    • "to determine and progress the basis of the national policy and the related plans and programs and to submit them to be approved by the Prime Minister;
    • to execute and to support scientific, technical and administrative studies;
    • to give approval, permission and license to the nuclear installations;
    • to enlighten the public in nuclear matters;
    • to establish research and educate the personnel in the nuclear field."
    Source: Kibaroglu, ibid., Endnote 21, p. 42.

  43. Kibaroglu, ibid., p. 35. See also: Unlu, ibid., p. 16.

  44. The 'Sinop' site is at Inceburun, the most northern point in Turkey, on the cental Black Sea coast, about 25 km west of Sinop.

  45. Unlu, Ibid.

  46. Atomic Energy of Canada Limited Annual Report 1984-85, p. 6.

  47. AECL Annual Report 1985-86, pp. 2 & 6.

  48. The existence of this office is noted in AECL's Annual Reports for 1986-87 and 1987-88.

  49. Diane Francis, "Let's scrutinize financing for $1 billion reactor", Toronto Star, November 12, 1985, pp. D1 & D2.

  50. Ibid.

  51. The Export Development Corporation (EDC) is a federal Canadian crown corporation, and is Canada's governmental export/import finance bank.

  52. Robert Mcdonald, "Canada may sell Turkey CANDU reactor", Toronto Star, November 1, 1983.

  53. CP, "Turkey set to accept new CANDU proposal", Globe & Mail, January 13, 1987, p. B7. Enka is working with the Westinghouse/Mitsubishi consortium in Turkey's 1997 bidding process.

  54. David Stewart-Patterson, "AECL expects CANDU sale to Turkey to close shortly" Globe & Mail, June 15, 1985, p. B3.

  55. CP, ibid., January 13, 1987, p. B7.

  56. CP, "Sale of CANDU a step closer" Globe & Mail, July 19, 1985.

  57. "Turkish decision shelves sale of Canadian nuclear plant" Toronto Star, October 16, 1986, p. E3.

  58. Kibaroglu, ibid., p. 36.

  59. The Turkish ambassador to Canada suggested in 1987 that another Canadian proposal would be entertained, but it came to nothing. See: CP, "Turkey set to accept new CANDU proposal" Globe & Mail, January 13, 1987, p. B7.

  60. ENACE is 75% owned by the Comision Nacional de Energia Atomica (CNEA), and 25% by KWU of Germany.

  61. Kibaroglu, ibid., p. 37.

  62. Prof. Yalcin Sanalan, former Director of TAEA, quoted in Kibaroglu, ibid., p. 38.

  63. CNEA is the operator of Argentina's CANDU reactor at Embalse (Cordoba), and INVAP designed the CAREM reactor, working out of Argentina's Bariloche Nuclear Centre.

  64. Kibaroglu, ibid., p. 37.

  65. Kibaroglu, ibid., p. 38.

  66. AECL 1992/93 Annual Review, p. 13.

  67. AECL Annual Report 1993-1994, p. 6.

  68. Ibid.

  69. Unlu, Ibid., p. 17.

  70. Unlu, Ibid.

  71. Unlu, Ibid.

  72. "Korea prepares for Turkish bid", Nuclear Engineering International, May 1995. See also: Jack Ashton, "Turkey close to launching N-plant project", Nucnet, March 29, 1996.

  73. "Akkuyu plans meet opposition", Nuclear Engineering International, March 1995, p. 8.

  74. Nevzat Sahin, Head of Nuclear Power Plant Department, TEAS, Turkey, TEAS Akkuyu Nuclear Power Plant Project, December 17, 1996.

  75. Uranium Institute News Briefing 97.29-15, "Turkey: Bids for the country's first nuclear power plant will be collected on 4 September and there will be no further extensions, according to an energy ministry spokesman." (Reuters, 17 July, 1997)

  76. Mark Hibbs, "Turkey's pro-US regime extends bidding, which may boost Westinghouse bid", Nucleonics Week, September 4, 1997, pp. 7-9.

  77. Mark Hibbs, ibid., September 4, 1997, p. 8.

  78. Unlu, ibid., p. 17.

  79. Nevzat Sahin, ibid.

  80. Mark Hibbs, "World finance, regional gas market keys to Turkey's Akkuyu project", Nucleonics Week, August 28, 1997, pp. 10-13.

  81. Mark Hibbs, ibid., August 28, 1997, p. 12.

  82. Nevzat Sahin, Ibid.

  83. "Akkuyu Bidders Announced", Nuclear Engineering International, March 1997, p. 4. See Also: Anatolia News Agency, June 6, 1997.

  84. Ansaldo is AECL's partner in Romania, where Cernavoda-1 has started operation, and negotiations are underway to procure financing to complete a second reactor.

  85. Mark Hibbs, "NPI Sees little hope, AECL edge in Turkish nuclear unit bidding", Nucleonics Week, May 1, 1997, p. 5.

  86. Mark Hibbs, ibid., August 28, 1997, pp. 10-13.

  87. AECL Annual Report 1994-1995, p. 5.

  88. AECL Annual Report 1995-1996, p. 7.

  89. AFP, "Mitsubishi, Franco-German group to tender for Turkey nuclear plant", August 25, 1997.

  90. Mark Hibbs, ibid., May 1, 1997.

  91. The 'CANDU 6' is actually a misnomer. The earlier designs of the reactor were close to 600 MW, but it has been scaled up. The two 'CANDU 6' reactors sold to the Peoples' Republic of China for construction at Qinshan are actually closer to 700 MW.

  92. Mark Hibbs, ibid., August 28, 1997, pp. 10-13.

  93. Mark Hibbs, ibid., August 28, 1997, pp. 10-13.

  94. Mark Hibbs, ibid., May 1, 1997, p. 5.

  95. The TEAS specifications identify the following main criteria for bidders: previous construction and commissioning of at least two NPPs; designating one "reference plant" similar to the one being offered for Akkuyu; preference shall be given to the ones who have constructed an NPP abroad; the design which has previously had an "accident" shall not be accepted; the NPP offered shall be licensable first in the bidder's country; 5 year operation experience for the type offered; and the offered power plant shall be the newest of its type.

  96. "South Korea: Datafile", Nuclear Engineering International, January 1997, p. 17.

  97. Mark Hibbs, ibid., September 4, 1997, p. 7.

  98. Mark Hibbs, ibid., September 4, 1997, p. 7.

  99. Mark Hibbs, "Turkey expected to request bids for PWR project in coming weeks", Nucleonics Week, March 21, 1996, pp. 1-2.

  100. Mark Hibbs, "Turkey considers spent fuel deal with Bulgaria, Hungary for Akkuyu", Nuclear Fuel, August 25, 1997, p. 8.

  101. Mark Hibbs, ibid., September 4, 1997, p. 8.

  102. Background on opposition to nuclear power in Turkey has been obtained through personal communication with Ms. Aynur Sungur Tuncer, an activist with the National Anti-Nuclear Platform -- a national coordinating body for environmental organizations throughout the country.

  103. Personal communication from Aynur Sungur Tuncer, September 2, 1997.

  104. "Akkuyu plans meet opposition", Nuclear Engineering International, March 1995, p. 8.

  105. Personal communication with Aynur Sungur Tuncer, September 3, 1997.

  106. Reuters, "Turkey set to strike Cyprus, report says", Globe & Mail, January 10, 1997, p. A10.

  107. United Nations, The United Nations and Nuclear Non-Proliferation, UN Department of Public Information, 1995, Document 46, p. 183.

  108. Kibaroglu, ibid., p. 33.

  109. United Nations, ibid., p. 62.

  110. Kibaroglu, ibid., p. 35.

  111. "Turkey's role in Pakistan's nuclear program", Worldwide Report, March 20, 1987, pp. 14. Cited in: Kibaroglu, ibid., p. 35.

  112. "Canadian firm drops bid to build nuclear plant", Nuclear Developments, February 25, 1988, p. 39. Cited in: Kibaroglu, ibid., p. 36.

  113. Cited in: Kibaroglu, ibid., p. 38.

  114. Kibaroglu, ibid., p. 39.

  115. Thanos Dokos in "Greece", in Harald Muller, ed., Nuclear Export Controls in Europe, Brussels, European Interuniversity Press, 1995, p. 208. Cited in: Kibaroglu, ibid., p. 39.

  116. Mark Hibbs, ibid., September 4, 1997, p. 8.

  117. David Argue Consulting, A Review of the Economic Cost of Power in Ontario, Independent Power Producers' Society of Ontario, May 1997, p. 10. These cost are based on a twenty year service life, with a discount rate of 10%, and a uniform lifetime capacity factor of 65%.

  118. Reid Morden, "CANDU Exports and Opportunities", Canadian Nuclear Society Bulletin, Vol. 18, No. 1, May 1997, p. 26. The two CANDU 6 reactors sold to the Peoples' Republic of China cost $4 billion, of which the Canadian government financed $1.5 billion.

  119. AECL News Release, AECL sells two CANDU 6 units, worth $4 billion to China, November 26, 1996.

  120. Ray Silver, "Wolsung-2 on grid next month; confirmation of China loans near", Nucleonics Week, February 27, 1997, p. 20.

  121. Hon. Anne McLellan, Minister of Natural Resources, letter to Mr. Rich Krechowicz, May 4, 1995. The actual interest rate reported in the industry press was 7.5%.

  122. Sierra Club of Canada news release, "Sierra Club files for court review of CANDU deal", January 21, 1997. See also: Sierra Club of Canada news release, "Federal court to hear Sierra Club motion on Tuesday", April 14, 1997.

  123. Jeff Sallot, "Ottawa skips reactor advice", Globe & Mail, August 11, 1997, pp. A1 & A4.

  124. Ray Silver, "AECL executive rejects claim that Canada subsidizes China sale", Nucleonics Week, August 22, 1996, p. 3. The minimum interest rate under the OECD Consensus Agreement is tied to the Special Commercial Interest Reference Rate (SCIRR), which represents "final commercial lending rates of interest in the domestic market of the currency concerned" and "correspond[s] to a rate for a first class domestic borrower" Source: OECD Consensus Agreement.

  125. Hanjung is also a subcontractor in the Qinshan Phase II deal in which CNNC is building two 600 MW PWRs using technology transferred from the French reactor vendor Framatome.

  126. Ann MacLachlan, "South Korea's Qinshan-II financing forces other countries to follow", Nucleonics Week, October 17, 1996, pp. 15-16.

  127. Ibid.

  128. Personal communication from Rhea Cohen, AECL, October 8, 1996.

  129. Romania has nominally ordered 5 reactors, however, only one reactor has proceeded with financing from Canada. A second reactor at Cernavoda is about 40% complete, but is not proceeding pending negotiation of a financing agreement with Canada.

  130. CANDU performance compares poorly to other main reactor types. For example, 1996 average capacity (load) factors were as follows:
    • Pressurized Water Reactors (PWRs) = 77.06%;
    • Boiling Water Reactors (BWRs) = 78.98%;
    • Pressurized Heavy Water Reactors (PHWRs, or CANDUs) = 61.5%; and
    • Advanced Gas Cooled Reactors (AGRs) = 76%.
    See: Richard Knox, "1996 load factors analysed by NSSS vendors", Nuclear Engineering International, July 1997, pp. 39-40.

  131. Nevzat Sahin, ibid., p. 2.

  132. Mark Hibbs, "NPI sees little hope, AECL edge in Turkish nuclear unit bidding", Nucleonics Week, May 1, 1997, p. 5.

  133. BOT usually stands for Build, own and transfer, although the Turks have characterized it as "Build, operate and transfer". See: Kibaroglu and Unlu, ibid.

  134. Robert McDonald, "Turkey to press Ottawa for nuclear plant backing, report says", Toronto Star, February 18, 1986, p. D3. See also: [Financial Times, London] "Turkey seeks joint-venture investment", Globe & Mail, January 7, 1987, p. B18.

  135. OECD Consensus Agreement,"Appendix: Prior Consultations on Terms of Export Credits for Nuclear Power Plants", p. 41.

  136. Amnesty International USA, Amnesty International Report: 1996, p. 301.

  137. Editorial, "Turkey and Islam", Toronto Star, July 11, 1996, p. A22.

  138. Amnesty International, No Security Without Human Rights, AI Briefing, 1996. This total does not include the 'Village Guards' -- paramilitary forces funded by the government whose numbers are estimated at 55,000.

  139. Amnesty International, Turkey: No Security Without Human Rights, AI, 1996, p. 126, FN 1.

  140. Amnesty International, ibid., p. 2.

  141. Amnesty International, Turkey: Human rights and health professionals, AI Index EUR 44/159/96, December 1996, p. 8.

  142. Amnesty International, Turkey: No Security Without Human Rights, AI, 1996, p. 36.

  143. Amnesty International, Turkey: Student killed in extra-judicial execution, AI Index: EUR 44/183.96, December 1996.

  144. Amnesty International, Turkey: No Security Without Human Rights, AI, 1996, p. 45.

  145. Amnesty International, Turkey: Information on Continuing Human Rights Abuses, February 1996, AI Index: EUR 44/10/96, Summary.

  146. Amnesty International, "Turkey: Families of 'disappeared' thank Amnesty International for focusing world attention on their plight", AI Index: EUR 44/167/96, October 28, 1996.

  147. Amnesty International, Turkey: No Security Without Human Rights, AI, 1996, p. 5.

  148. Reuters, "Turkish forces sweep into Iraq", Toronto Star, May 15, 1997, p. A26.

  149. Amnesty International Report: 1996, p. 301.

  150. Amnesty International, Turkey: Student killed in extrajudicial execution, AI Index: EUR 44/183/96, December 1996, p. 6.

  151. Amnesty International, "Turkey: Unacceptable law on detention procedures unlikely to prevent torture", AI Index: EUR 44/18/97.

  152. Jonathan Ewing, "Turkish media demanding answers in scandal", Globe & Mail, December 18, 1996, p. A18. See also: Gwynne Dyer, "Corruption and Turkey's coming coup", Toronto Star, May 7, 1997, p. A25.

  153. Amnesty International, Turkey: No Security Without Human Rights, AI, 1996, p. 55.

  154. Doug Struck, "Islam flexing its muscles in Turkey", Toronto Star, January 11, 1996, p. A17.

  155. Stephen Kinzer (New York Times), "Secular Turks wary of government", Globe & Mail, February 14, 1997, p. A14.

  156. Nicholas Doughty, Reuters, "US, Europe fret about Turkey", Globe & Mail, January 10, 1997, p. A10.

  157. Stephen Handelman, "NATO member struggles to stay democratic", Toronto Star, March 2, 1997, p. F6.

  158. Editorial, "Turkey's 'soft' coup", Globe & Mail, March 6, 1997, p. A20.

  159. AP, "Erbakan irks party by bowing to military" Globe & Mail, April 28, 1997, p. A15.

  160. Jonathan Lyons (Reuters), "Turkish generals continue to flex muscles", Globe & Mail, May 12, 1997, p. A14.

  161. AP, "Turkish PM cedes power to deputy, will call early vote", Toronto Star, June 3, 1997, p. A12.

  162. Stephen Kinzer (New York Times), "Turkish army rattling sabres under Prime Minister's nose", Globe & Mail, June 13, 1997, p. A13.

  163. AP & Reuters, "Turkish PM agrees to hand over power", Globe & Mail, June 14, 1997, p. A18.

  164. AP, "Turkish president picks pro-western PM", Globe & Mail, June 21, 1997, p. A2.

  165. Hugh Pope (Wall Street Journal), "Turkey braces for further upheavals", Globe & Mail, April 29, 1997, p. A12.

  166. Gwynne Dyer, "Turks have enough troubles without Helmut Kohl", Toronto Star, March 12, 1997, p. A23.

  167. Stephen Kinzer (New York Times), "Turkey's ages-old identity crisis deepens", Globe & Mail, February 25, 1997, p. A10.

  168. "Turks told not to expect early EU membership", Globe & Mail, March 27, 1997, p. A14.

  169. Reuters, "Turkish generals boost pressure on PM", Globe & Mail, April 30, 1997, p. A14.

  170. Ron Finch, Exporting Danger: A History of the Canadian Nuclear Energy Export Programme, Black Rose Books, Montréal-Buffalo, 1986, p. 54.

  171. (AP), "$4 million bribe given on Candu Argentina says", Toronto Star, June 13, 1985. See also: Joel Ruimy, "RCMP should probe bribery scandal in Candu sale to Argentina, Tory says", Toronto Star, June 14, 1985.

  172. Finch, ibid., pp. 58-59.

  173. Finch, Ibid., p. 58.

  174. Finch, ibid., pp. 58-61.

  175. CBC Radio, Sunday Morning (program segment hosted by Bob Carty), May 21, 1995.

  176. CBC Radio, ibid.

  177. "South Korea: Ex-Kepco head sentenced", Nucleonics Week, December 15, 1994, p. 16. See also: Ray Silver, "AECL Breaks with South Korean Agent in Wake of Kickback Scandal", Nucleonics Week, August 11, 1994.

  178. CBC Radio, ibid.

  179. Report of the Auditor General of Canada to the House of Commons, 1975-1976, pp. 150-151. The Auditor noted that AECL was
    1. carrying its prototype reactors on its books at an inflated value;
    2. that it was failing to accrue interest on loans from the government of Canada; and
    3. that it had failed to account for an anticipated loss of $100 million in the CANDU sale to Argentina.

  180. AECL Annual Report 1995-96, p. 35.

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