Suppliers

Paks II Ltd. verifies the suitability of suppliers to be involved - both those selected by itself and those to be engaged by the Contractor, Atomstroyexport JSC (hereinafter: ASE JSC or Contractor), under the EPC (Engineering, Procurement and Construction) contract - with regard to activities affecting nuclear safety, in order to maintain the capacity of Paks Nuclear Power Plant.

The suppliers may perform nuclear safety-related activities only with the prior approval of Paks II Ltd. (the licensee) and under its continuo

us supervision. Therefore, in accordance with the applicable legislation - in particular, Act CXVI of 1996 on Atomic Energy, as well as the HAEA Decree 1/2022 (IV.29) and the Nuclear Safety Code (NSC) constituting an annex thereto - the Company has developed and operates a qualification system to verify the supplier suitability. Paks II Ltd. evaluates the suitability of suppliers - both its own and those proposed by the Contractor - through a nuclear qualification procedure on a contract-by-contract basis.

The following options are available to join the project:

1. Joining the ASE JSC supplier chain

In the case of participation in the implementation of tasks falling within the contractual scope of the Contractor, the Contractor - following the selection of a supplier - shall provide Paks II Ltd. with the information related to the contracts it has concluded, in accordance with the EPC contract. Based on the submitted information, Paks II Ltd. determines whether a nuclear qualification procedure is required for the performance of the given contract, and if so, determines its type. If the qualification is required, the procedure is carried out in coordination with the Contractor.

Current procurement notices published by the Contractor are available, among others, here . 

2. Joining as a direct supplier of Paks II Ltd.

In the case of participation in the implementation of tasks related to the contractual scope of Paks II Ltd., the selection of direct suppliers is carried out within the framework of a procurement/public procurement procedure. Based on the contractual scope, Paks II Ltd. decides whether a nuclear qualification procedure is required for the given contractual activity. If the qualification is necessary, Paks II Ltd. arranges for the conduct of the nuclear qualification procedure prior to the conclusion of the contract. 
Information and documentation related to public procurement procedures initiated by Paks II Ltd., acting as contracting authority, are available in the Electronic Public Procurement System (hereinafter: EKR) in accordance with Act CXLIII of 2015. Current public procurement notices of Paks II Ltd. are available here. 

General information on supplier involvement

Key information on nuclear qualification procedures

• During the nuclear qualification procedure, compliance with the requirements and supplier suitability are evaluated on a contract-by-contract basis.
• In the course of the procedures, all necessary information shall be made available to the Hungarian Atomic Energy Authority (HAEA), and the Authority shall be provided with the opportunity to participate in the procedure.
• Qualification certificates issued by Paks II Ltd. are valid for the duration of the contract related to the specific activity, but for no longer than three years.
• Continuous supervision of suppliers qualified by Paks II. Ltd. shall be ensured in accordance with the above-mentioned legal background. The primary tool of nuclear supervision is the supervisory audit, during which Paks II Ltd. verifies the activities performed by the supplier at the site of implementation. The method and scope of the inspection depend on whether the supplier performs design, manufacturing, construction and installation or commissioning activities.
• The procedures are implemented primarily on the basis of the applicable Hungarian legislation detailed below and the requirements set out in the specific business contract (or draft contract) applicable to the given organization, in accordance with the Guidance for auditing management systems (MSZ EN ISO 19011:2018), applying the relevant requirements.

Key requirements for suppliers

• Knowledge and application of Act CXVI of 1996 on Atomic Energy
• Knowledge and application of HAEA Decree 1/2022 (IV.29)
• Compliance with the Nuclear Safety Code (in particular, Volumes 2 and 9)
• Operating of a management system in accordance with the requirements of the Nuclear Safety Code (Section 2.2)
• Knowledge of the Safety Policy of Paks II Ltd.
• Submission of documentation related to the quality management system to Paks II Ltd.

 

• Requirements applicable to members of the ASE JSC supply chain
  • Familiarity with the relevant Project Management Manual (PMM) under the EPC contract between Paks II Ltd. and ASE JSC
  • Operation of a management system in accordance with MSZ EN ISO 9001:2015
  • Availability of other certificates relevant to the specific activity

 

• As a direct supplier of Paks II Ltd.
  • documentation related to the management system,
  • available certificates,
  • documents proving the qualifications of personnel participating in the contractual activity, 
  • confirmation of the professional experience of these personnel regarding the above scope,
  • a list of references pertaining to the identical or similar contractual scope,    
  • the internal audit programme for the previous year and examples demonstrating the implementation of related audits, documents proving the qualifications of internal auditors,
  • examples of non-conformity management,
  • the results of the most recent management review,
  • examples of the management and evaluation of subcontractors (external audits),
  • documentation related to the safety culture of Paks II Ltd. and documents proving familiarisation with the Paks II Ltd. Safety Policy,
  • the supplier’s documentation related to safety culture and its Safety Policy,
  • the list and evaluation of suppliers intended to be involved in the contractual activity,
  • relevant documentation and references of suppliers intended to be involved in the contractual activity,
  • availability of appropriately qualified and trained personnel,
  • description of the tasks and responsibilities of persons involved in the performance of individual subtasks,
  • documents proving the qualifications of suppliers and personnel involved in the contractual activity,
  • evidence of the professional experience of personnel involved in the contractual activity relevant to the above scope,
  • a list of references pertaining to the identical or similar contractual scope.

• Safety Culture requirements
  • Safety culture in the Paks II project
  • Safety culture training
  • Safety culture poster
  • Safety culture booklet 
  • Культура безопасности на проекте Пакш II
  • Обучение культуре безопасности
  • Плакат о культуре безопасности
  • Брошюра о культуре безопасности

 

Frequently Asked Questions

How can one join the project?

The majority of activities related to the construction of the new units under the Engineering, Procurement and Construction (EPC) contract concluded for the implementation of the Paks II project are carried out within the contractual scope of the Contractor.

There are two ways to participate in the implementation activities:

1.    As a part of the ASE JSC supply chain:
Current procurement notices published by ASE JSC are available here.

2.    As a direct supplier of Paks II Ltd.:
Current public procurement notices of Paks II Ltd. are available here.

How can the required authorisations be obtained?

For the implementation of nuclear-related activities within the Paks II project, two types of authorisations are generally required:

• suppliers are entitled to perform activities affecting nuclear safety only on the basis of a qualification certificate issued by Paks II Ltd. (“A supplier may perform activities affecting nuclear safety only with the approval of the licensee, under continuous and competent supervision.” NSC 9.2.2.0600). This qualification procedure is conducted by Paks II Ltd. as described above.
• in specific cases prescribed by law, the performance of certain activities requires a license issued by the Hungarian Atomic Energy Authority (HAEA) (e.g. manufacturing, construction, import, etc.). The licence application shall be submitted to the HAEA by Paks II Ltd., following review of its content and compliance with the law.

In both cases, it is essential that the supplier thoroughly familiarise itself with, interpret, and apply the legal requirements applicable to its activities.

What are the main areas where specific expertise is required for participation in the project?

• Knowledge of the relevant legislation
• Basic configuration management knowledge

What costs are associated with the nuclear qualification procedure?

Nuclear qualification procedures conducted by Paks II Ltd. are free of charge for suppliers undergoing qualification. These procedures are carried out by Paks II Ltd. at its own expense to fulfil its legal obligations. 

There may be costs associated with preparation for the procedure. For example, the preparation and operation of the supplier’s management system, in order to comply with specific nuclear regulatory requirements (including obtaining certificates) may involve expenses such as labour costs of internal resources, purchase of legislation, standards, potential use of external consultancy services.

Fulfilment of reporting obligations for exemption from Russian sanctions

Article 12h of Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine provides an exemption from the prohibitions set out in the Regulation (i.e. sanctions against Russia) for activities carried out in connection with the Paks II project. However, the Regulation makes this exemption conditional on a reporting obligation.

On this basis, Section 13/Q of Government Decree 52/2012 (III.28.) on the cross-border trade of certain goods, services and rights of pecuniary value provides that participants in the Paks II project shall notify the Government Office of Budapest (BFKH) of their activities within two weeks of commencing such activities, using the forms available at:

https://mkeh.gov.hu/hivatal/paks_ii_projekt 

In light of the above, subcontractors participating in the Paks II project are required to comply with the notification obligations set out in the above legislation.