Russia, Egypt set to sign nuke power plant deal

Egypt and Russia will sign the Dabaa nuclear power plant agreement on Monday (December 11) in Cairo, a media report said.

The total cost of establishing the plant is $30 billion and Egypt will recover the plant’s construction cost within 13-15 years, reported Daily News Egypt, citing government sources.

The sources added that the Dabaa plant will cost Egypt about $60 million annually to purchase the required nuclear fuel, while the operation of a power plant using gas turbines with a similar capacity would cost $200million annually.

Russia will provide Egypt with a $25 billion loan, equivalent to 85 per cent of the construction cost. The loan is due to mature after 13 years, with 3 per cent annual interest, the report said.

The sources pointed out that Russian President Vladimir Putin’s visit will also witness signing a contract to establish a Russian industrial zone in the Suez Canal area. They expect Russia will resume its flights to Egypt by January 2018.

Ali Abdel Nabi, former deputy head of the Nuclear Power Plants Authority (NPPA), said that the production cost of electricity from a nuclear plant is cheaper than power plants using gas turbines, adding that nuclear power plants are likely to run efficiently for 80 years.

He further added that the Dabaa plant will operate with a capacity of 4,800 MW, providing electricity for 10 million housing units with a consumption rate of 200-300 kW per month.

Egypt will need about 24 months to obtain safety and security approvals before it begins establishing the nuclear plant, he added.

Source: tradearabia.com