UAE Picks French Firm to Help Run Korean-Built Nuclear Plant
29 November, 2018
The United Arab Emirates has signed a deal with French energy group EDF to help operate a Korean-built nuclear power plant, alarming some in the Korean nuclear industry.
The Barakah power plant is being built by a consortium led by Korean power monopoly KEPCO with Korean technology, and the original contract provides for it to run it as well.
But the Ministry of Trade, Industry and Energy here on Wednesday said that EDF announced on its website that it signed a long-term deal on Nov. 21 to operate and maintain the Barakah power plant.
The deal is said to be for 10 years and worth US$10 million. It was signed with Nawah Energy, a joint venture set up in 2016 by Emirates Nuclear Energy Corporation and KEPCO to operate and manage the plant's four APR-1400 nuclear reactors.
The plant is slated for completion in 2020 at a cost of W2 trillion, and each of the reactors will generate 1.4 GW of power (US$1=W1,129). KEPCO hopes for revenues of W54 trillion over the 60 years of the reactors' lifespan.
Nawah already in 2016 signed an operation support service agreement with Korea Hydro and Nuclear Power worth $920 million for 10 years and is reviewing a long-term maintenance agreement with KHNP.
The ministry downplayed the significance of the fresh deal with EDF, saying it is "only related to technological consultation." The UAE also has previous agreements with companies from the U.K. and the U.S. for technology support during construction, and KHNP itself has advisory deals with German and U.S. competitors for its operation.
But industry insiders here voiced concerns that EDF's involvement could have a negative long-term impact on managing the plant and expose Korean technology to a competitor.
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