Parliament approves Dabaa nuclear plant contracts
Decision on establishing executive agency for the plant in two weeks: Abdullah
The House of Representatives approved the contracts and agreements for the Dabaa nuclear plant, before presenting them to President Abdel Fattah Al-Sisi.
Member of Parliament’s Energy and Environment Committee, Essam Abdulla, said that the commercial contract to establish, supply, and operate the Dabaa nuclear plant was reviewed and approved by parliament. This includes four contracts: main establishment, fuel supply, operation, technical support, and exhausted fuel stores.
He noted that parliament did not face any issues when reviewing the contracts and agreements, adding that the Dabaa plant is an important national project that the state has been seeking to implement for a long time. He pointed out that the contracts were sent out to the president for them to be enacted through his signature.
According to the preliminary agreement that Egypt signed with Russia’s Rosatom, the company will establish a nuclear power plant in Dabaa with a capacity of 4,800 MW for $30bn. Russia will provide a government loan of $25bn to finance equipment and services for construction and operation.The loan will be used to finance 85% of the value of each contract to implement works, services, and shipments of the project.
Egypt will finance the remaining amount, representing 15%, in the form of installments.The amount will be paid for the benefit of the authorised Russian institutions in a way that suits the contracts, through an advance, or any payment that can be made after implementing works and services and delivering supplies.The term of the Russian loan is 13 years, to be paid in the period from 2016 until 2028, at a 3% annual interest rate.