CAIRO– Atomstroyexport, a subsidiary of Russia’s State Atomic Energy Corporation, or Rosatom, announced Feb. 17 that 3 Egyptian business were granted a tender offer for constructing the first phase of Egypt’s Dabaa nuclear reactor.
The 3 Egyptian business, completing amongst 10 others, are Petrojet, Hassan Allam and the Arab Specialists.
The Egyptian federal government intends to start negotiations within the next couple of days with the Egyptian Nuclear and Radiological Regulatory Authority to acquire approval to start carrying out the Dabaa nuclear plant project. The plant will be built in the Dabaa location of Marsa Matrouh governorate in the west of the nation.
The Dabaa plant is the very first nuclear plant for serene uses, with an overall capability of 4.8 gigawatts. The job is financially supported by Rosatom through a Russian loan totalling up to $25 billion.
An official source at the Ministry of Electrical Energy and Renewable Energy informed the paper Al-Youm Jan. 18 that the Nuclear Stations Authority will obtain authorization to establish the nuclear plant in the middle of this year, after completing the procedures for the plant and technical reports. The source asserted that setting the concrete foundations for the first atomic power plant will occur in mid-2021.
On Feb. 3, the head of the Nuclear Stations Authority at the Egyptian Ministry of Electrical Power, Mohamed Khayat, affirmed in press declarations to the federal government newspaper Akhbar Al-Youm that Moscow would begin developing the Dabaa nuclear plant in early 2020.
Egypt signed on Nov. 19, 2015, a contract with Russia to complete the Dabaa nuclear plant project with four reactors each with a capability of 1,200 megawatts each.
On Might 19, 2016, the Egyptian Authorities Gazette published Egyptian President Abdel Fattah El-Sisi’s choice No. 484 of 2015, validating the agreement signed between Moscow and Cairo. This contract approved Egypt a Russian government loan to build the very first nuclear reactor in Egypt — the Dabaa plant.
In the understated arrangement, Egypt will acquire a $25 billion loan from Russia to finance the works, services and shipments connected to the structure and operating devices for the power units at the Dabaa plant.
Yemen al-Hamaki, a teacher of economics at Ain Shams University, informed Al-Monitor through the phone that the project to establish a nuclear reactor had actually long been on Egypt’s program. Succeeding federal governments attempted to execute it however were not effective. The task has been held off for more than 50 years.
She further explained that under this contract Egypt will utilize the loan to fund 85% of the total worth of the building, construction, insurance and all other associated works. Egypt would bear the remaining 15% in the form of installations. The loan is for 13 years at a 3% yearly interest rate. If Egypt stops working to repay any of the annual interest within 10 working days, it will go through defaults of 150% of the interest rate calculated on an everyday basis.
Hamaki also alerted that this huge Russian loan of $25 billion could explode Egypt’s foreign debts. “This loan is a fantastic risk to the future because it strains the state and should be settled from the wealth and economic properties of the future generations,” she said, adding, “Egypt’s turning to lots of loans foretells its inability to draw in foreign investments, while tourist incomes continue to decline.”
Hamaki stated, “This task has stirred extreme controversy and has gotten its share of criticism, most especially due to the fact that of its place. Dabaa, in Marsa Matrouh, is a tourist location that the state can exploit for touristic and investment tasks due to its area on the Mediterranean coast in an extremely unique location extending over 60 kilometres (37 miles) along the northern coast of Egypt.”
Ayman Hamza, a spokesman for the Egyptian Ministry of Electrical Energy and Renewable Energy, argues that the “Russian loan of $ 25 billion is not a concern on Egypt. It is a big amount, Egypt will pay its value by offering the energy produced from the nuclear reactors. This task would not be costing Egypt anything.”
Hamza kept in mind that the building of the entire nuclear plant is scheduled to be finished in 2026. “The job will be functional for three years before Egypt begins paying the first instalments in 2029,” he informed Al-Monitor.
He asserted that the electrical energy anticipated to be generated from the Dabaa nuclear plant would reach more than 10% of the overall electrical energy produced throughout the nation.
In turn, Amjad al-Wakeel, head of Egypt’s Nuclear Power Plants Authority, which is connected with the Ministry of Electrical Energy and Renewable resource, informed Al-Monitor that the Dabaa nuclear plant project will bring Egypt $264 billion in incomes over a duration of 60 years, which is the life-span of the nuclear plant.
With regard to security and security factors, Wakeel validated that all technical licenses and preliminary security reports sent by Rosatom had been finished and Egypt accepted them with the help of a lot of foreign experts and professionals specialized in this field.
“All safety and security factors associated with the construction and operation procedure and all the following stages have actually been considered,” he stated. Wakeel included, “The reactors will be developed utilizing the most recent technological approaches on the planet. They will be created to instantly stop in the event of any mistake or malfunction.”
Wakeel mentioned that the nuclear plant will be completely prepared and geared up and safeguarded versus all-natural factors and disasters such as earthquakes and storms. “Egypt is major about the building and construction procedure and is eager on the safety and financial prosperity of its people at the exact same time,” he concluded.