Akkuyu: Nuclear power station designed for loss!

This time the losing commitment for Turkey comes in the form of a nuclear power plant: Akkuyu. The designed loss is in the tune of 26 billion 932 million US dollars.

Akkuyu: Nuclear power station designed for loss!

In a series of absurd commitments to powerful foreign monopolies with guaranteed high profits, Turkey signs deals that are guaranteed to lose.

This time the losing commitment for Turkey comes in the form of a nuclear power plant: Akkuyu. The designed loss is in the tune of 26 billion 932 million US dollars.

This model of guaranteed-loss projects for Turkey were previously setup in the fields of hospitals, airports, roads and bridges.  In order to secure foreign investments, the Turkish government guarantees higher-than-market profits for the foreign corporation.  In return, the investor corporation builds the facilities and collects the guaranteed profits whether there are any sales or not.  All transactions are in US dollars, preventing any reduction of profits in case exchange rates turn negative.

As reported by Ozan Gündoğdu from the daily Birgün, the nuclear plant Akkuyu was built and will be managed under the same model.  The government guarantees to buy 19 billion kWh from the plant at 0.1235 dollars per kWh.  This figure is much higher than the market price of 0.029 dollars per kWh.  For the next 15 years guaranteed under this contract, the Turkish government is planning on losing 1 billion 795 million US dollars per year on this power plant if all goes according to the plan.

This translates to $26,932,500.000 dollars loss by design for the 15 year duration of the contract,.  When one factors in that there is a glut of power production and not enough demand, the government will be paying the difference to the investing corporation of the power not sold to the customers.  This will increase the planned losses for the government.

On top of these planned losses, the Turkish government also pays exuberant amounts as ²support grants² to corporations that sign these contracts or other corporations involved in the privatization pf national assets.

In 2018 alone the government doled out 21 billion TL to the sinking private enterprises after they bought the privatized national enterprises for pennies to the dollar.  Paying under various names to divide the massive amounts given as hand-outs to the capitalists and preventing scrutiny, the government keeps these private firms alive with tax monies collected from the people.  In 2018, under these assorted funding programs, the private enterprises received 11 billion 777 million TL for “renewable energy” support grants; 6 billion 800 million TL for fuel costs of natural gas plants; 1 billion 407 million for “capacity utilization” grants; and, 1 billion TL grant to buy electrical power from the coal plants.  The total “support grants” for corporations under this program totaled nearly 21 billion TL.

Sendika.Org News (Mehmet Bayram)