OREANDA-NEWS. March 29, 2012. Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced that the Company has agreed to the Concession Agreement with the Lithuanian Energy Ministry regarding construction of the Visaginas nuclear power plant planned for Lithuania. The Concession Agreement will be officially concluded after the approval by the Lithuanian parliament which has been in session since March 2012.

Lithuania is planning to construct a new nuclear power plant in Visaginas in the northeastern part of the country, with the aim of having an operational plant in 2021. In 2008, the project company Visagino Atomine Elektrine (VAE) was established to further the development of the project and conduct negotiations relating to investment into the Visaginas Nuclear Power Plant. In 2009, the Lithuanian parliament passed a bill permitting the construction of a nuclear power plant in Visaginas.

Hitachi and Hitachi-GE Nuclear Energy, Ltd. (Hitachi-GE) proposed to provide an Advanced Boiling Water Reactor (ABWR) – the only generation III nuclear reactor with a proven operational track record around the world – to the Lithuanian government. Hitachi was selected as the strategic investor in July 2011, and in December 2011 initially signed the term sheet for the Concession Agreement.

Today, Hitachi signed the Concession Agreement with the Lithuanian Energy Ministry, and will carry out procedures to get approval from the Lithuanian government. Following the approval of this agreement by the Lithuanian parliament, the concession for power plant construction will be granted to a Project Company to be established by investment from Hitachi, VAE and regional partners. The Project Company will conduct negotiations regarding EPC (engineering, procurement, and construction) and so forth. The project company will aim to conclude contracts by around summer of 2012.

The proposed ABWR has an enhanced level of safety, drawing on experiences from the Great East Japan Earthquake. It has an alternative power supply and incorporates countermeasures to restore cooling functions as necessary. In executing this project,
 Hitachi will team up with U.S.-headquartered GE, Hitachi's partner in the nuclear power business, and GE-Hitachi Nuclear Energy. In addition, Hitachi and Hitachi-GE will also collaborate with local companies and contribute to the creation of jobs in local industries in both the construction and operation of the plant.

Hitachi is promoting global business development centered on its expertise in the Social Innovation Business, which combines providing leading social infrastructure solutions underpinned by highly reliable and highly efficient information and telecommunications technology. In this context, Hitachi is actively pursuing opportunities in Central and Eastern Europe, including Lithuania, as a key region in its overseas business development plan on the Social Innovation Business.