S. Korea wins 3 tln won deal to build nuclear power plants in Egypt

Aug 26, 2022, 08:54 am

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President Yoon Suk-yeol attends a summit of the North Atlantic Treaty Organization (NATO) at the IFEMA Convention Center in Madrid, Spain, on July 29./ Source: Yonhap

AsiaToday reporter Lee Wook-jae

The government has won a 3 trillion won deal to build a nuclear power plant in Egypt. This is the first nuclear power export since the inauguration of the Yoon Suk-yeol administration and the first large-scale nuclear power plant export in 13 years since the winning of the Barakah nuclear power station in the United Arab Emirates. It is evaluated that President Yoon attributed to the winning of the deal as he has been pitching the country’s nuclear power exports to world leaders on the international stage since taking office.

“Korea Hydro and Nuclear Power (KHNP) today officially signed a 3 trillion won worth of turbine-related equipment and construction contract with Russia’s Atomstroyexport (ASE) in Cairo, Egypt,” said Choi Sang-mok, senior presidential secretary for economic affairs, at a briefing at the Yongsan presidential office.

Egypt’s nuclear power authority originally awarded the project to build four nuclear reactors in El Dabaa, Egypt, to Russia’s ASE, which has subcontracted to the state-run KHNP the deal. “The project is the country’s second largest nuclear power plant export since 2009, when the country built the Barakah nuclear power station in the United Arab Emirates,” Choi said.

“We experienced many difficulties in the process of negotiating the contract due to unexpected variables, such as Russia’s war in Ukraine and sanctions against Russia,” Choi said. “The Yoon Suk-yeol government’s scrapping of the nuclear phase-out policy and strong determination to export nuclear power plants combined with the efforts of relevant agencies, such as the industry ministry, foreign ministry and KHNP, to achieve the final completion of the contract,” he said.

The country succeeded in exporting nuclear power plants through collaboration between the private sector and the government in a situation where it was impossible to guarantee that the contract would be concluded due to external factors, such as Russia’s war in Ukraine, although KHNP was previously selected as the sole bidder for the nuclear reactor construction project. Industry observers say the deal is meaningful as it is the first time for the country to enter the African market which has great potential.

“The experience of building nuclear power plants in Egypt, the central country in the region, will serve as a bridgehead for Korean companies to advance into the African market,” Choi said. “We expect it to be an experience we can rely on and a strong momentum that will increase our chances of exporting additional nuclear power plants in the future to countries such as Czech Republic, Poland and Saudi Arabia,” he said.

President Yoon’s ‘nuclear power plant sales’ seem to have played a significant role in the government’s successful export of nuclear power plants. “President Yoon expressed the strong commitment of the South Korean government and businesses to ensure the success of Egypt’s nuclear power plant project in a message sent to Egyptian President,” Choi said. Yoon reportedly conveyed this will to Egypt via Korean ambassador to Egypt.

“President Yoon instructed relevant agencies to provide the United States, a nuclear power ally, with an advance briefing on the deal,” Choi said. “The two countries agreed to continue close consultations in the future.”

#nuclear power plant #Egypt #Korea Hydro and Nuclear Power