Emirati-Korean Nuclear joint program to cost the UAE about $30 billion
The Emirati-Korean Nuclear joint program will cost the UAE about $30 billion namely Emirates Nuclear Energy Corp and Korea Electric Power Corp.
As for financing, spokesman for Emirates Nuclear said that it may be split into one third equity and two third debt. As for the Korean company, it stated that information about cost should remain confidential.
Despite the nuclear disaster that struck Japan earlier this year, the government of the UAE decided to continue with its nuclear project, which includes four nuclear reactors. The country offered a bid tender which was won by the Korean Electricity company, Korea’s biggest electricity company, back in 2009 to help make the UAE the first Gulf Arab country with atomic nuclear capability for peaceful purposes.
Abu Dhabi will provide most of the $10bn equity, and $10bn of the debt is to come from export-credit agencies, mainly from South Korea. The rest will be financed by banks and sovereign debt.
“It’s a work in progress,” al-Qahtani said by phone from Abu Dhabi yesterday. “We haven’t yet finalized the finance strategy and we are still looking at different options.”
The government is expected to announce its financing plan by next March to finalize contracts by the end of 2012.
The cost of construction was expected to be $20bn when it was first announced two years ago. In addition to the construction, South Korea planned to participate in the operation, maintenance and fuel supply, earning a further $20bn, JoongAng Ilbo newspaper reported at the time.
Korea Electric beat General Electric Co. and Areva SA of France for rights to build the UAE’s first nuclear reactors. This is Korea Electric’s first international nuclear power project. (Source: www.yallafinance.com)