SUMMIT DIPLOMACY KOREA TO BUILD NUCLEAR POWER PLANTS IN THE UAE Led by the Korea Electric Power Corporation (KEPCO) consortium, Korea won the right to build and operate four nuclear power plants in the United Arab Emirates worth US$40 billion. It’s the largest deal of its kind for Korea, nearly six times bigger than the deal to build a second phase of the Libyan waterway in the 1980s. by Kwon Kyeong-hui 36 KOREA FEBRUARY 2010
Nuclear power plants in Yeonggwang, South Jeolla Province, Korea (above). Construction of nuclear power plant in Gori, Korea (right). Korea Hydro & Nuclear Power Co., Ltd Multibits Image The UAE nuclear power plant deal is being hailed as a gold mine that will raise the country’s national profile. After setting its first nuclear power plant in motion in Gori in 1978, with the aid of US technology, Korea will now get to export its indigenous nuclear power plant (APR 1400) for the first time, ushering in a renaissance of nuclear power. Korean President Lee Myung-bak says China plans to build 100 nuclear power plants, with 400 additional plants by 2030 worldwide and about 1,000 more in the long term. “Korea has joined the likes of the United States, Japan, France and Russia as exporters of nuclear power plants,” Lee said. “President Sheikh Khalifa bin Zayed Al Nahyan and I discussed building comprehensive and strategic partnerships in nuclear power as well as in education, the latest technology and security,” Lee added. “Our relations with the UAE should bring us the second Middle East boom. Unlike in the past, we should make headways in high value-added industries, centered on plants.” The UAE deal includes the construction of the first 1,400-megawatt reactor by 2017 and a total of four reactors, in the capital Abu Dhabi and Sila, 330km to its west, by the year 2020. Over the next 10 years, the construction contract will amount to US$20 billion, which would equal the amount generated by exporting 1 million units of mid-sized sedans or exporting 180 units of major oil tankers weighing 300,000 tons. Another US$20 billion will be earned during the 60-year lifespan of the reactors as Korea would oversee operations and replace equipment as necessary. “The UAE order will generate 110,000 jobs over 10 years,” a Blue House official said. “Considering other effects related to construction, equipment manufacturing, architecture, nuclear technology development and financing, the deal will have an impact on the nation’s economy as a whole.” President Khalifa expressed hopes for cooperation with Korea in various fields. Mohamed Al Hammadi, CEO of the Emirates Nuclear Energy Corporation, said, “We were impressed by the worldclass safety the KEPCO consortium presented and that’s why we selected it.” Hammadi, who will oversee the country’s first nuclear power plant project, added that the deal will be an important starting point for the UAE nuclear power industry, which will continue to develop into the future. “In the bidding, we regarded safety as the most important factor,” Al Hammadi explained. “The KEPCO consortium received higher marks in safety than its competitors. Whether the leading consortium company could be held accountable for participation of its partners and whether the companies could honor the deadline were other important criteria,” the CEO added. “The consortium convinced us that it could deliver the knowhow for 30 years of successfully operating nuclear power plants.” Al Hammadi then added that ENEC and KEPCO will form a joint venture to operate the UAE nuclear power plants, adding, “The two companies will be able to create other joint ventures in areas such as fuel supply. We’re also considering sending our personnel to Korean universities or institutes to develop our nuclear technology. The UAE is trying to reduce carbon emissions and use nuclear energy for peaceful purposes for sustainable growth,” Al Hammadi continued, “We expect the two countries to maintain a long-term relationship.” KOREA FEBRUARY 2010 37
Change language