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Russia helps Egypt to explore opportunities of NPP construction
back to contentsWithin the framework of the visit Russian State Atomic Energy Corporation Rosatom and Egyptian Ministry of Electricity and Renewable Energy have agreed to launch detailed discussions on the prospective project and responsible organizations Rusatom Overseas and Egyptian Nuclear Power Plants Authority have strengthened the agreement by signing a Project Development Agreement (PDA) which sets the configuration of the nuclear power plant with desalination complex and key areas of related cooperation.
Sergey Kirienko, Director General of ROSATOM Corporation, said: “The Project Development Agreement that has been signed today provides for the construction of two nuclear power units; on the whole, it is planned to construct four units. Now, in a very short period of time, we need to prepare for signing two intergovernmental agreements – one on nuclear power plant construction and one on financing. During the negotiations, we have been set a task to perform at a maximum speed, and Rosatom is ready for that.”
EXPERT OPINIONS:
Leonid Gusev, expert of the Analytical centre of the Moscow State Institute for International Relations of the Ministry of Foreign Affairs of the Russian Federation:
Trade and economic relations between Russia and Egypt have been ongoing for many decades. It shall be recalled that the first agreement with Egypt on cooperation in the area of atom for peace was signed in 1956. During the Soviet years we helped Egypt construct many large infrastructure facilities, which still play an important role in the economic growth of the country.
Construction of a nuclear power plant in the north of Egypt according to the Russian technology can become another infrastructure project capable to increase approximately twice the commodity turnover between our countries. Russia has confirmed the intention to participate in the tender for NPP construction, and Russia has every chance to win this tender, since the Russian Nuclear State Corporation Rosatom comes up with a very competitive proposal. This proposal includes both the high technologies that take into account the post-Fukusima experience and the attractive side of the project financing. The possibility to desalt water may become another important advantage of the Russian project.
Undoubtedly, development of own nuclear power generation industry becomes for Egypt a large-scale technological breakthrough; it will allow taking to a new level the economic and social development of the country.
Sergey Kondratyev, the economic department sector leader of the “Institute for Energy and Finance” Fund:
Egypt has been demonstrating during the last years a not very high economy’s growth rate. This is somewhat connected to that this country experienced problems in a variety of directions, including provision of rather cheap fuel, foodstuffs and power. Egypt is compelled to import oil. Thereat energy consumption grows very quickly. Accordingly, the possibility to extract mineral fuel (first of all — gas) is limited, as is the case with the possibility to develop hydraulic power industry. Therefore Egypt needs a stable and rather inexpensive source of energy; a nuclear power plant can represent this source of energy, especially considering the fact that for the next years both population and industrial potential will be growing rapidly enough. Egypt is not the only country that wants to set up an NPP — many countries of the Middle East consider such possibility. We may reckon in this list Jordan and Gulf States, i.e. the states with serious reserves of traditional fossil fuel. They all are optimistic about the nuclear power industry development.
In particular, there are two key aspects for Egypt in this plan. The first one is the safety issue, since Egypt is located in a complicated region. The possibility of safe NPP operation in all respects — both in technological aspect and in case of any abnormal situation not related to the technological process. The second key aspect is the cost price of generated electric power. Because Egypt is not a very rich country. The cost of this construction project will also define its competitiveness for the power industry of Egypt. In my opinion, according to these two key indicators the Russian project is of high priority for Egyptians. Our project is essentially cheaper than projects of the European and American suppliers — approximately 1.5-2 times. Due to essential depreciation of rouble the Russian project will be even more competitive. Since the capital equipment and design works are financed by Atomstroyexport in roubles, its dollar costs will be probably even lower. Besides, one shall not forget that the modern Russian project assumes a number of absolutely new technological concepts that safeguard against possible accidents — such as, for example, a molten-core catcher.
Modern Russian nuclear power plants are resistant to any emergencies unrelated to the technological mode. The fact that a unit can withstand a direct airplane crash is important for such a volatile region as Egypt. Safety is especially important for such densely populated countries. In this context the Russian project looks very well. Although China can compete with us in terms of value, Russia currently has no worthy competitors according to the complex comparison with due regard to costs and safety of work. Besides, we offer the whole range of services, including personnel training for the future NPP in Russian high schools and the possibility to develop other directions in nuclear power industry.
Cooperation with Egypt means not only money for Russia. NPP operating throughout 50-60 years means improvement of both economic and political relations over a very long-term. After all the parties are usually interested in stable relations because of the project duration. For Russia it is the possibility to approach a perspective enough market of the North Africa and the Middle East, where our presence is not yet very strong, including not just the nuclear area but the hi-tech export in general. Our presence is also important there because this market will grow during the next years very quickly due to the demographic factor, despite various perturbations.
NPP construction also provides a potential for domestic economy growth, since with the best will in the world the level of local manufacturing content will not be very high for Egypt due to natural reasons. All the same this is the first project of such value in this country; the number of experts and the corresponding level of technologies are not sufficient. But at the same time it is expected to create a great enough number of workplaces both for Egyptians (and not just for our domestic experts) to service the construction, to set up utilities and to perform other works. This important technological chain will demand participation of the Russian hi-tech industry and will also promote the growth of Egyptian economy.