Korea Signs Truncated Nuclear Deal with UAE
25 June, 2019
Korea has signed only a disappointing maintenance agreement for the Barakah power plant in the United Arab Emirates it built.
The government here said Monday that a consortium of Korea Hydro and Nuclear Power and KEPCO Plant Service and Engineering inked the five-year maintenance deal with Nawah Energy Company, the operator of the Barakah plant.
The deal had been expected to be exclusive and worth W3 trillion over up to 15 years, but ended up being whittled down considerably, with the contract period being only five years and payments made on a case-by-case basis (US$=W1,158).
The reason seems to be that Nawah wary of the Korean government's nuclear phase-out plans, which will eventually put Korean contractors out of business.
Doosan Heavy Industries, meanwhile, signed a separate maintenance service agreement.
KHNP said the deal was possible due to the "strong trust and friendship" between the two countries as well as recognition of Korea's "superior nuclear plant technology and operating capability."
But industry watchers saw things differently. They say the point of the deal is that the maintenance of the plant will be managed by Nawah itself, which will only ask the Korean consortium for help if necessary.
Nawah itself is a joint venture between KEPCO and its UAE partners.
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