[Exclusive] Egypt Nuclear Power Plant Order Passes 'Final Hurdle'... Contract Signing Likely by End of This Month

KHNP Virtually Secures Eldaba Nuclear Power Plant Contract... Recent Internal Procedures Completed
Final Inspection Meeting Held Last Week... Contract Signing Likely by Month-End
Total Project Scale $30 Billion... KHNP's Share Estimated at 5-10%
Major Achievement 13 Years After 2009 UAE Export... Nuclear Industry 'Optimistic'

A panoramic view of Barakah Nuclear Power Plant in the United Arab Emirates (UAE), Korea's first exported nuclear power plant.
[Photo by Asia Economy DB]

[Asia Economy Sejong=Reporter Lee Jun-hyung] Korea Hydro & Nuclear Power (KHNP) has virtually secured the contract for the multi-trillion won El-Dabaa nuclear power plant project in Egypt. This marks the first nuclear power export deal worth trillions since the Barakah nuclear power plant in the United Arab Emirates (UAE) in 2009, ending a 13-year gap. The domestic nuclear power ecosystem, which was hit hard by the Moon Jae-in administration’s ‘nuclear phase-out’ policy, is also expected to breathe new life.

According to a comprehensive report from Asia Economy on the 16th, KHNP completed all internal procedures last week for the contract of the second phase construction project of the El-Dabaa nuclear power plant. KHNP President Jeong Jae-hoon chaired an internal meeting on the 11th to conduct a final review of the El-Dabaa nuclear power project. A KHNP official stated, “The Russian counterpart is currently completing their final internal procedures,” adding, “Unless there is a major change, the contract signing ceremony is expected to take place at the end of this month.”

The El-Dabaa nuclear power project is a large-scale project to build four 1200MW-class nuclear reactors in the coastal city of El-Dabaa, Egypt. Previously, KHNP was selected as the sole negotiation partner for the second phase construction project of the El-Dabaa nuclear power plant at the end of last year, including the turbine building. JSC ASE, KHNP’s contracting partner, is a subsidiary of Rosatom, the Russian state-owned nuclear company, which secured the entire El-Dabaa nuclear power project from Egypt’s Nuclear Power Plants Authority (NPPA) in 2017. The total project scale is $30 billion (approximately 39 trillion won). KHNP’s share is estimated to be 5-10%, worth between 2 trillion and 4 trillion won.

Through the El-Dabaa nuclear power plant, KHNP will achieve a ‘trillion won’ level export for the first time in about 13 years. KHNP’s overseas nuclear power projects had been dormant since winning the Barakah nuclear power plant contract in 2009. This was largely due to the impact of the previous government’s nuclear phase-out policy, which damaged international trust in Korean nuclear technology.

Expectations in the nuclear power industry are also rising. Since KHNP’s share in this project is worth trillions of won, it is believed that the domestic nuclear power ecosystem, which was hit hard by the ‘nuclear phase-out’ policy, will also benefit from a trickle-down effect. Immediately, the construction of the El-Dabaa nuclear power plant is planned to be undertaken by Doosan Enerbility, one of Korea’s leading nuclear companies. This means that more than 200 Doosan Enerbility partner companies are likely to see an increase in work opportunities.

Meanwhile, the El-Dabaa nuclear power plant held its first concrete pouring ceremony on the 20th of last month, marking the start of construction. KHNP is known to have attended the local pouring ceremony. The Egyptian government plans to operate the first unit of the El-Dabaa nuclear power plant starting in 2028.