Suppliers

The Hungarian companies and businesses have a significant role in the Paks II. project. Hungarian Act II of 2014 set the objective to reach the 40 % domestic participation of the project, thus providing Hungarian job opportunities. In certain jobs, for example during the establishment of the construction and assembly base the Hungarian supplier ratio could significantly exceed the 40 % target. 

In addition the Russian Party is committed to select 55% of the project’s suppliers according to the European Commission’s requirements via public procurement. These tenders do not allow companies or organisations to participate which belong to the Rosatom group. Considering that Hungary signed a fixed-price, turn-key contract with the Russian Party, the subcontractors are involved by the Russian Party in the investment via public procurement procedures. 

Paks II. Ltd. as a nuclear licensee developed and operates a qualification system in accordance with the effective law in order to select suppliers and verify their suitability. 

Paks II. Ltd. audits the suppliers involved either by its own or the Contractor during the nuclear qualification process for each contract which has nuclear safety relevance. 

The condition for starting work under a contract having nuclear safety relevance is only possible after a successful nuclear qualification.

The current public procurement announcements of ASE Joint Stock Engineering Company (JSC ASE EC) are available here

Based on the mandatory reporting required by the Act CXLIII of 2015 on Public Procurement, the information and documents of public procurements started by Paks II Ltd, as contracting authority, can be found on the respective online database of the Public Procurement Authority of Hungary. The actual public procurement notices can be found here

 

Nuclear qualification:

The nuclear qualification process is a procedure to examine the suppliers’ – intended for the capacity maintenance of the Paks Nuclear Power Plant (whose activities have an impact on nuclear safety, regardless whether they are involved by the Owner or the Contractor according to EPC) – ability to fulfill their contractual obligations and their ability to meet the requirements arising from NSC (Nuclear Safety Codes). Starting the contractual work is only possible following a successful nuclear qualification.

Paks II. Ltd. as a nuclear licensee developed an adequate qualification system and uses it to select suppliers and verify their suitability according to effective law, especially the Nuclear Act (Act CXVI of 1996 on Atomic Energy) and the Nuclear Safety Codes (Govt. Decree 118/2011 (VII. 11.) on the nuclear safety requirements of nuclear facilities and on related regulatory activities). 

Paks II. Ltd. verifies the suitability of its own suppliers for the activities related to capacity maintenance of the Paks Nuclear Power Plant or for suppliers to be engaged by the Contractor under the EPC contract. The ability to fulfil the requirements is examined in case of each contract during the nuclear qualification process.

 

Frequently asked questions:

How to get the right licenses?
During the implementation of the Paks II. project, basically two types of “licenses” (not of procurement, but of a special nuclear nature) are required for the activities:

  • suppliers are only entitled to perform activities affecting nuclear safety on the basis of the certification issued by the Licensee (Paks II. Ltd.) (A supplier may perform nuclear safety activities only with the approval of the Licensee, under continuous and competent supervision, see NSC 9.2.2.0600). This qualification process is done by Paks II. Ltd. (or its experts), as described above.
  • in special cases required by law, a license (manufacturing, construction, import, etc.) issued by the Hungarian Atomic Energy Authority (HAEA) is required to carry out the activities. The licensee is entitled to submit the license application to the HAEA after examining its content and compliance with the law.

In both cases it is necessary for the supplier to thoroughly understand, interpret and apply the legal requirements applicable to his activity.


What organizations do you need to register with in order to join the project?Under the Engineering, Procurement and Construction (EPC) contract concluded for the realization of the Paks II. investment, the majority of the activities related to the construction of the new units will be performed within the contractual scope of Atomstroyexport Engineering Company Joint Stock Company (ASE EC JSC). As a result, any organization wishing to join the implementation should pay attention to and apply for the procurement tenders announced on ROSATOM’s procurement portal (zakupki.ru). Regular information on Paks II. related tenders are provided below. Another possibility (especially for smaller entreprises) is to contact the winners of the tenders on the same portal in order to get involved in their work.


What are the financial implications of all these?
There is no fee for the nuclear qualification procedures carried out by Paks II. Ltd. in respect of the suppliers subjected to the qualification process, the company does so at its own expense in order to fulfill the legal obligation as the licensee. The preparation itself, and the preparation and operation of the supplier's management system to meet the specific requirements of a nuclear legislation (even obtaining certificates) may have costs (labor costs of internal resources, purchases of legislations, standards, possible costs of using a consultant).

Public Procurements of the Contractor