Egypt, Rus­sia to sign fi­nal con­tracts for $30bn Dabaa nu­clear power plant within 2 months

The Daily News Egypt - - Business -

The govern­ment is set to com­plete the $30bn agree­ment with Rus­sia re­gard­ing the Dabaa nu­clear power plant within two months.

Min­is­ter of Elec­tric­ity Mo­hamed Shaker said that the main con­tract for the plant and the con­tract for sup­ply­ing the nu­clear fuel have al­ready been signed with the Rus­sian com­pany Rosatom, adding that the con­tracts for the tech­ni­cal train­ing and es­tab­lish­ment will be signed within two months.

He ex­plained that the nu­clear power plant is one of the min­istry’s main ob­jec­tives to di­ver­sify en­ergy sources and pro­mote peace­ful use of nu­clear en­ergy.

The Dabaa nu­clear power plant will be com­posed of four units with a to­tal ca­pac­ity of 4,800MW.

Shaker said that Dabaa plant will not pro­duce any gas emis­sions pol­lu­tants or green­house gases, and that it will have the high­est global safety rates used to gen­er­ate elec­tric­ity in nu­clear power sta­tions.

He added that the pro­ject pro­vides a num­ber of so­cial, eco­nomic, and cul­tural ad­van­tages, in­clud­ing that it will pro­vide 10,000 new jobs for the youth of Marsa Ma­trouh dur­ing the eight-year con­struc­tion pe­riod, as well as at least 4,000 other jobs af­ter op­er­a­tion be­gins.

Egypt signed an agree­ment with Rus­sia to es­tab­lish a nu­clear power plant in Dabaa with a ca­pac­ity of 4,800MW for $30bn. Rus­sia will pro­vide a govern­ment loan of $25bn to fi­nance the equip­ment and ser­vices for the plant’s con­struc­tion and op­er­a­tion.

The loan is used to fi­nance 85% of the value of each con­tract to im­ple­ment the works, ser­vices, and ship­ments of the pro­ject.The Egyp­tian side will pay the re­main­ing amount, rep­re­sent­ing 15%, in the form of in­stal­ments.The amount will be paid for the ben­e­fit of the au­tho­rised Rus­sian in­sti­tu­tions—in a way that suits the con­tracts—in the form of an ad­vance or any pay­ment that is made later, af­ter im­ple­ment­ing the works and ser­vices and de­liv­er­ing sup­plies.The term of the loan is 13 years—over the pe­riod from 2016 un­til 2028—at a 3% an­nual in­ter­est rate.

The com­mer­cial con­tract be­tween Egypt and Rus­sia to es­tab­lish, sup­ply, and op­er­ate the Dabaa nu­clear plant in­cludes four agree­ments: the main es­tab­lish­ment, the sup­ply of fuel, tech­ni­cal sup­port dur­ing op­er­a­tion, and the es­tab­lish­ment of stor­age for con­sumer fuel.

Pres­i­dent Ab­del Fat­tah Al-Sisi said in pre­vi­ous state­ments that the Dabaa nu­clear power plant is a third-gen­er­a­tion tech­nol­ogy re­ac­tor, which is the lat­est tech­nol­ogy avail­able world­wide in this field. He added that there are real guar­an­tees dur­ing the im­ple­men­ta­tion and op­er­a­tion with re­gards to the en­vi­ron­ment and safety, ac­cord­ing to in­ter­na­tional stan­dards, where it could with­stand a plane crash of 400 tonnes at a speed of 150 me­tres per sec­ond.

He stressed that the nu­clear power plant pro­ject will play a vi­tal role in di­ver­si­fy­ing en­ergy sources of Egypt, strengthen its re­gional and in­ter­na­tional stand­ing, and put the coun­try on the thresh­old of a new, mod­ern tech­no­log­i­cal era.

Samy Shaaban, vice chair­per­son of the Egyp­tian Atomic En­ergy Author­ity for train­ing and in­ter­na­tional co­op­er­a­tion, said that the es­tab­lish­ment of the power plant is sub­ject to a num­ber of pro­ce­dures, in­clud­ing choos­ing the lo­ca­tion, re­view­ing the stud­ies of the en­vi­ron­men­tal im­pact, green­light­ing con­struc­tion, and ob­tain­ing pre-op­er­a­tion per­mits.

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