Public joint-stock company Turboatom (Kharkiv) buys welded pipes to make condensers of turbines for National Nuclear Generating Company Energoatom from a foreign manufacturer at a price that is almost twice higher than their market price: some $12 per kg with the market price of around $6.80 per kg.

Director of Osada Institute of Tube Industry Radomyr Korol gave the information at a press conference at Interfax-Ukraine on Tuesday.

"Today welded pipes are bought using budget funds at a price that is actually twice more than the market price," he said, adding that the wholesale batches imply the price lower than the market price.

Korol said that the lifespan of these welded pipes is around 10 years. Thus, the use of welded pipes in the conditions of permanent lack of financing of the energy sector is unviable, as seamless pipes with the market price of around $15 per kg can be used for 30 years and even 50 years.

He said that Energoatom states it saves 10% of funds when the company buys equipment from Turboatom.

Energoatom Executive Director for Production Valentyn Bulhakov told reporters that the use of welded pipes for this equipment is the decision of Energoatom. Initially in 2006 seamless pipes were proposed. Last year the equipment replacement project was changed in favor of welded pipes that their quality characteristics have been improved with their lower price.

"Welded pipes are 30-50% cheaper. This is a large sum, taking into account the cost of one kilogram of pipes," he said.

He said that their lifespan is also 30 years.

Bulhakov said that welded pipes are successfully used all over the globe. These pipes are installed only at a reactor of Yuzhnoukrainsk nuclear power plant (NPP) last year. These pipes are used in condensers of some Russian NPPs.

In addition, Korol focused on the fact that in the condition of idle facilities of Ukrainian pipe producers, the pipes are bought from a foreign producer. Representatives of Dniprospetsstal, Dnipropress, Centravis Prduction Ukraine and Oscar present at the press conference confirmed that their enterprises can produce seamless pipes for the Energoatom's order.

According to the ProZorro e-procurement system, Turboatom on September 5, 2016 signed a contract to buy welded pipes worth EUR 4.158 million with Italy's .D.Tubi Inossidabili S.p.A and on September 21 a contract to buy welded pipes worth EUR 4.058 million.

According to ProZorro, Energoatom selected Turboatom to produce equipment for turbine condensers of Zaporizhia NPPs. I&C Energo a.s., Balcke-Dürr GmbH and Královopolská a. s. also took part in the tender. Their bids were rejected. The expected cost of equipment was UAH 530.488 million.

"The cost of pipes in the cost of this condenser (UAH 530 million) is up to 70%. This is around UA 300 million. Someone can steal a half of this UAH 300 million, using welded pipes and putting us in jeopardy for the nearest term or someone would not steal this half and we receive really safe equipment that would serve the required term," Korol said.

He said that equipment with the lifespan of 30 years (even 40 years) could be received for the same money, not changing the structure of equipment and its production budget, but only by replacing welded pipes by seamless pipes in technical conditions.