The document provides an overview of WorleyParsons Nuclear, including: 1) WorleyParsons is a leading provider of project delivery and consulting services to the energy sector, with over 35,100 employees in 157 offices worldwide. 2) WorleyParsons Nuclear has hubs in Europe, Canada, and the USA and provides services throughout the nuclear power plant lifecycle from site selection to decommissioning. 3) The document outlines WorleyParsons' nuclear project experience and services, including feasibility studies, licensing support, engineering and design, and project management.

1. Alexander Wolski, Strategic Projects Director
Lazarina Bataklieva, Lead Economic Analyst
WorleyParsons Nuclear
Financial Models & Vendor Agreements
IAEA MAK2006 WORKSHOP
Bulgarian Experience in Nuclear Energy Program
Skopje, 29 April 2015

2.  WorleyParsons Overview
 Electricity Cost from NPPs
 Investment Cost for a new NPP
 Operational Cost of an NPP
 Financial Model
 Project Ownership & Financing
 Current Examples
Agenda

3. WorleyParsons is a leading provider of project delivery and consulting services
to the resources & energy sectors and complex process industries. Our
services cover the full asset spectrum both in size and lifecycle – from the
creation of new assets to services that sustain and enhance operating assets.
Across our comprehensive global network our three customer sector groups
use their extensive expertise to deliver small studies through to mega-projects.

4. With over 35,100 people in157 offices throughout 46 countries, we
provide our customers with a unique combination of extensive global
resources, world-recognized technical expertise and deep local
knowledge.
Global reach

5. We operate in…

6. WorleyParsons Nuclear Hubs
EU Hub (Sofia)
 100+ employees
 Approximately 550 nuclear
capable employees and staff
augmentation support in the
Region
 Site selection and site hazards
 Feasibility Studies, Licensing
and preconstruction services
 New build/Refurbishment
Owner’s Engineer, design
support
 Safety Assessment and
Verification Analyses including
stress tests
 Major nuclear PM experience
accumulated last 10 years
 Main centre for IAEA and EU
regulations application
experience
Canada Hub (Toronto)
 200 employees
 Approximately 250 nuclear
capable employees and staff
augmentation in the Region
 employees and staff
augmentation support
 Engineering and Design
Support to Canadian nuclear
program and main Canadian
utilities
USA Hub (Reading)
 100+ employees
 Approximately 600 nuclear
capable employees and
staff augmentation in the
Region
 Proven excellence in
nuclear PM role and design
 Vast US NRC regulations
application experience
 New plant services
(deployment, planning,
COLA and ESP)
 Existing plant services
 Decommissioning
 Post-Fukushima evaluations
and modernizations

7.  Pre-construction phase – Armenia, Bulgaria, China,
Czech, Egypt, Jordan, Poland, Russia, Saudi Arabia,
Slovakia, Slovenia, South Africa, Turkey, USA
 Construction – USA, Japan, Korea, Slovenia
 Operation:
 Power-uprates, plant upgrades and modernization –
Bulgaria, Canada, Mexico, Slovenia, Sweden, Russia
and FSU (Lithuania, Ukraine, Armenia), USA
 Post-Fukushima Experience – Bulgaria, Russia,
Turkey, USA
 License renewal – Canada, USA
 SF and RAW management - Canada, UK, USA
 Decommissioning – Armenia, Canada, UK, USA
Nuclear What We Do
55+
Years of Industry Experience
18
Nuclear Units
Engineer of Record
30,000+
MW Nuclear Projects
Customers services through all phases of a nuclear power plant lifecycle

8.  NPP Project Development Services
 Plant siting studies
 Nuclear technology evaluations
 Risk assessment for prospective new nuclear projects
 New nuclear plant conceptual design
 Conceptual project development
 Pre-feasibility and feasibility studies
 Bankable feasibility studies
 Program planning and support
 Environmental Impact Assessment
Nuclear What We Do

9.  WorleyParsons Overview
 Electricity Cost from NPPs
 Investment Cost for a new NPP
 Operational Cost of an NPP
 Financial Model
 Project Ownership & Financing
 Current Examples
Agenda

10.  Investment Cost
 Typically 60 – 80% of the generation cost
 Can be influenced by various parameters
 Operational & Maintenance Cost
 Typically 15 – 25% of the generation cost
 Cost are more or less fixed, optimization potential
is small once a technology is defined
 Fuel Cost
 Typically 10 – 15% of the generation cost
 Spent Fuel Cost practically fixed by SF Management
Strategy
 Cost are more or less fixed, optimization potential is small
 Decommissioning Cost
 Typically 1 – 2% of the generation cost;
 Defined by structure of decommissioning fund / legal requirements
Electricity Cost from NPPs
Investment cost
60-80%
Operational &
Maintenance Cost
15-25%
Fuel Cost
10-15%
Decommissioning
Cost 1-2%

11.  WorleyParsons Overview
 Electricity Cost from NPPs
 Investment Cost for a new NPP
 Operational Cost of an NPP
 Financial Model
 Project Ownership & Financing
 Current Examples
Agenda

12.  Overnight Construction Cost
 Include all Engineering, Procurement and Construction Cost
 Could be split in a packaged approach (Nuclear Island, Turbine Island, Balance of
Plant) depending on contracting scheme
 Include Owner’s Cost
 Assume plant to be built on one day, no time dependent costs
 EPC Cost
 Directly related to plant engineering, construction, procurement, installation, testing
and commissioning
 Depend on contracting scheme, technology provider(s)and site characteristics
 Typically 70 – 80% of the Overnight Construction Cost
 Owner’s Cost
 Licensing , project management, supervision and infrastructure cost, selection and
training of operating personnel, Owner’s Engineer Services if applicable
 Owner’s cost depend on the current status of the existing infrastructure, including
availability of qualified owner’s resources
 Typically 20 – 30% of the Overnight Construction Cost
Investment Cost for a new NPP

13.  Escalation Cost
 Depend on macro-economic situation (host country and country of origin) and
development during the construction project;
 Sensitive to project delays (at least for the Owner’s cost);
 Typically 10 – 20% of Overnight Construction Cost
 Financing Cost
 Interests and fees paid during plant construction;
 Typically combined in the term “Interest during Construction” or IDC;
 Sensitive to any project delay;
 Normally capitalized at the begin of operation;
 Typically 20 – 30% of the Overnight Construction Cost
 Simplified Total Investment Cost
 Recent publicly available data for plant EPC cost (overnight):
- UAE (4 x 1400 MW): 20 bnUSD (3571 USD/kW)
- Akkuyu (4 x 1200 MW): 22 bnUSD (4583 USD/kW)
- Jordan (2 x 1200 MW): 10 bnUSD (4167 USD/kW)
- Hinkley Point C (2 x 1600 MW): 14 bnGBP (5814 USD/kW)
Investment Cost for a new NPP

14. Simplified Overall Investment Cost
% Investment Cost in mUSD
Overnight Cost (ONC) 60-80 7,143 6,250
EPC Cost 70-80 5,000 5,000
Owner’s Cost 20-30 2,143 1,250
Escalation Cost 10-20 714 1,428 625 1,250
Financing Cost (IDC) 20-30 1,428 2,143 1,250 1,875
Investment Cost 9,285
(186% of EPC)
10,714
(214% of EPC)
8,125
(163% of EPC)
9,375
(188%of EPC)

15.  WorleyParsons Overview
 Electricity Cost from NPPs
 Investment Cost for a new NPP
 Operational Cost of an NPP
 Financial Model
 Project Ownership & Financing
 Current Examples
Agenda

16.  Operational and Maintenance Cost
 All day-to-day non fuel cost. Most significant items are labor, repair and maintenance,
large replacements, nuclear liability insurance
 Most major costs are fixed and cannot be directly influenced
 Typically 15 – 20% of Electricity Generation Cost
 Fuel Cost
 Low compared with fossil generation;
 Fresh fuel normally priced as sum of its individual components (uranium, conversion,
enrichment, FA manufacture, transport and delivery, etc.)
 Spent Nuclear Fuel Cost depends largely on SNF strategy implemented
 Most cost elements fixed and cannot be directly influenced
 Typically 10 – 15% of Electricity Generation Cost
 Decommissioning Cost
 To be accumulated during the operational lifetime of the plant
 In most cases re-evaluated on a regular basis
 Considered as a fixed cost element
 Typically 1 –2% of Electricity Generation Cost
Operational Cost of an NPP

17.  WorleyParsons Overview
 Electricity Cost from NPPs
 Investment Cost for a new NPP
 Operational Cost of an NPP
 Financial Model
 Project Ownership & Financing
 Current Examples
Agenda

18.  Project Specific model to perform financial analyses for the project
 Combines characteristics of the chosen power plant technology(s) with
site- and country-specific parameters with chosen options for project
financing
 Such models usually calculate project financial parameters like:
 Levelized Cost of Electricity (LCOE)
 Net Present Value (NPV)
 Internal Rate of Return (IRR)
 Debt Service Coverage Ratio (DSCR)
 Etc.
 In addition pro-forma income statements and cash flow statements can be
calculated for the lifetime of the asset
 WorleyParsons has extensive experience in developing and applying
financial project models (Baltic NPP, Jordan NPP, Armenian NPP, Far-East
NPP, etc.)
Financial Model

19. Financial Model – Typical Structure
Technical
Characteristics
of Technology
Plant
Configuration (s)
Capital Costs
Project
Schedule
Schedule of
Expenditures
Model Calculations:
• Net present value
• Levelized Electricity Cost
• Internal Rate of Return
• ProForma Cash Flow
• Income & Balance Sheets
Fuel Costs
O & M Costs
Economic Inputs
(Statistics,
Assumptions,
Forecasts)
Financing
Structure (s)
Financial Sensitivity Analyses
• Dept Equity Ratio
• Dept Parameters
• Discount Rate
• Project Structure
Project Sensitivity Analyses
• Capital Costs
• Fuel Costs
• O & M Costs
Reports

20.  WorleyParsons Overview
 Electricity Cost from NPPs
 Investment Cost for a new NPP
 Operational Cost of an NPP
 Financial Model
 Project Ownership & Financing
 Current Examples
Agenda

21.  General Considerations for Nuclear Construction Projects
 High Technology driven (compared with other generation technologies)
 Substantially longer periods of project implementation / construction
 Mandatory specific safety measures to be employed (licensing risk)
 Limited number of technology suppliers and vendors
 Higher funding risk due to 100 years economic cycle
 Strict compliance with environmental requirements and NGO constraints
 Typically 15 – 20% of Electricity Generation Cost
 (Perceived ?) Track-record of cost- and schedule overruns
 Nuclear Projects require strong government commitment
 Nuclear Projects require strong government support through the entire
lifecycle
Project Ownership & Financing

22.  Sovereign (state) Based Structure
 100% state control of the project
 Funded through the state budget
 Government is responsible for the entire project
 Highest long-term state benefit
 Simplest contractual arrangement structure
 Highest risk exposure for the state
 Less compatible with efforts for free market models and liberalization
 Corporate Based Structure
 Corporation through balance sheet, equity, assets to fund investment
 Corporate responsibility and risks
 100% state-owned or 100% private owned, or any combination
 State control corresponding to its share in the corporation
 State benefit corresponding to its share in the corporation
Project Ownership & Financing

23.  Project Based Structure
 Project funding (equity and debt, secured by future incomes)
 Project responsibility and risks
 100% state-owned or 100% private owned, or any combination
 State control corresponding to its share in the corporation
 State benefit corresponding to its share in the corporation
Project Ownership & Financing

24.  WorleyParsons Overview
 Electricity Cost from NPPs
 Investment Cost for a new NPP
 Operational Cost of an NPP
 Financial Model
 Project Ownership & Financing
 Current Examples
Agenda

25. 4 x 1600 MW EPR to be built be EdF Energy
Ownership : “PROJECT”, 100% private (from
UK perspective)
Shareholders : EdF (~50%); CNNC/CGN (~30-
40%); AREVA (~10%); others
UK government support
Modified PPA agreement “Contract for
difference”
• Strike price fully indexed with CPI
• Strike (Guarantee) price of £ 92,50 /
128,6 € (2012) per MW for 35 years
(2020: 175 € ; 2030: 256 € ; 2040: 375
€ @ 3.9% CPI)
• UK infrastructure development loan
guarantee for 65% of the project
Equity and Debt : structure unknown
Hinkley Point C – Somerset
Location: UK
Current Examples

26. 4 x 1200 MW AES-2006 to be built be Rosatom project
company
Project Implementation based on Inter-Governmental
Agreement (2010)
First Build-Own-Operate contract in Nuclear Generation
Project Company
Ownership : “PROJECT”, 100% private (from Turkey’s
perspective);
Shareholders : RAOS (74.9%); REA (21.9%); ASE
(2.7%); Inter RAO (0.8%); Atomenergoremont (0.05%);
Atomtekhenergo (0.05%)
Turkish Government support:
• PPA agreement to be signed for 123.5 USD per
MW with annual adjustment possibility never to
exceed 153.3 USD
• PPA valid for 70% of the output of units 1&2 and
30% of the output of units 3&4
• Transfer of Site to PC
Equity and Debt : 100% financing provided by Russian
PC shareholders
Akkuyu NPP – Mersin
Location: Turkey
Current Examples

27. 2 x 700 MW Candu-6 to be built be EnergoNuclear
(completion project)
Project Company EnergoNuclear
Based on 40 years BOT concession
Supported by PPA to be agreed upon
Ownership : “PROJECT”, Public Private (Romania’s
perspective) Partnership;
Shareholders : NuclearElectrica (40 – 51%); CGN
(49%-60%)
Romanian Government support:
• PPA agreement
• Take on waste management and decommissioning
• Participation as equity investor
• NO Sovereign Guarantees
Equity and Debt : ? project financing ?
Cernavoda NPP
Location: Romania
Current Examples

28. 1600 MW EPR to be built be AREVA/Siemens
consortium
Financing not disclosed in detail, but key elements
through EC complaint;
TVO is a Finnish “Mankala” company; shareholder take
off electricity in acc. To their share and pay cost in acc.
To their share;
Ownership: Hybrid “CORPORATE”,/”PROJECT”;
Shareholders: none
Government support:
• Finland: Upholding of Mankala principle
• Finland: indirect shareholder through Fortum Power
Oy (51% state)
• Germany: indirect through favored loans from
Bavarian state bank
• France: 610 mEUR ECA
• Sweden: 100mEUR ECA
Equity and Debt : 25:75
Olkiluoto 3
Location: Finland
Current Examples