Egypt and Russia reaching final agreements on Dabaa nuclear power plant construction

Egypt considers the talks with Russia on construction of Dabaa, the country’s first Nuclear Power Plant (NPP), to be quite efficient, Electricity and Renewable Energy Minister Mohamed Shaker said Monday. We also invited him as a speaker in the upcoming Nuclear New Build Summit Egypt 2018, you can register now or contact us for more.

“We have made some headway in preparing all strategic agreements (on NPP construction in Egypt – TASS) with the Russian Federation, our strategic partner. We have also finalized all technical, financial and legal issues,” he said.

“Hopefully, we will sign a comprehensive agreement on implementation of Egypt’s nuclear program in the near future,” the minister added.

According to Shaker, Egypt has “few traditional sources for electric power generation [hydrocarbons – TASS],” which is why nuclear power development is strategically important for the country.

Russia and Egypt signed an inter-governmental agreement to construct the first nuclear power plant in El Dabaa in November 2015. The facility consisting of four power units with 1,200 MW capacity each, will be built near the city of El Alamein on Egypt’s northern coast, 3.5 kilometers away from the Mediterranean Sea. The launch of the first unit is expected in 2024. The total cost of the project is estimated at $30 bln.

Dabaa nuclear project contracts to be finalized Monday: Minister of Electricity

Minister of Electricity, Mohammed Shaker, revealed in a Wednesday press conference that the ministry has drafted the contracts for al-Dabaa nuclear project in preparation for laying its foundation during the upcoming visit of Russian President Vladimir Putin to Egypt, and the upcoming Nuclear New Build Summit Egypt 2018 invited him, if you want to know more, do not miss this summit.

The project, which embodies friendship and cooperation between Egypt and Russia according to previous statements by president Sisi in August, will generate 4800 Mw till 2024.

Shaker added that the cabinet approved to amend law no 13 of 1976 on the establishment of Nuclear Power Plant Authority (NPPA) during the Wednesday meeting. The draft law raised tax and custom exemptions on using nuclear power for development purposes.

The government also signed an agreement with The State Grid Corporation of China (SGCC), during President’s Sisi visit to China in September, to set up 500kw electric lines which help in improving Egypt’s electricity transmission in anticipation of increased demand, Shaker announced.

The government set an energy strategy until 2035 to develop electricity transmission networks in Egypt, Shaker explained. 25 percent of electric power will be generated from renewable resources in 2022, increasing to 37 percent in 2035.

The Ministry of Electricity obtained LE one billion from the ministry of planning to rehabilitate electric transmission lines inside dangerous buildings and areas, in addition to installing 250,000 smart meters, Shaker claimed.

Dabaa nuclear power plant contracts finalised: Ismail

Egyptian Prime Minister Sherif Ismail announced that all the Dabaa nuclear power plant contracts are finalised except for the fuel contract. The announcement came one day after Russian President Vladimir Putin accepted the invitation of President Abd Al-Fattah Al-Sisi to visit Egypt and attend the signing ceremony of the Dabaa nuclear power plant.

Ismail pointed out that the laying of the nuclear power plant cornerstone will take place soon, adding that the formulation and revision of the main contract, the implementation, maintenance, and operation contracts have been completed.

Egypt seeks to increase reliance on renewable energy sources in the power supply to make up around 20% of the total capacity of the national energy network by 2022 and to increase it to reach to 37% by 2035.

In May 2016, The Rosatom State Atomic Energy company announced that it would use third generation “VVER-1200 “reactors for the first time. The Dabaa nuclear power plant will consist of four of these reactors, each with 1,200MW capacity and with a total capacity of 4,800MW.

With the completion of the Dabaa nuclear power plant, Cairo can stand on the edge of technological progress enjoyed by the developed world, said Maher Aziz, energy and environmental consultant and a member of the World Energy Council. He added that project will create 5,000-6,0000 jobs during the first six years, indicating that the project will provide 10,000 job opportunities until its completion over 4 phases.

On the other hand, Hussein Al-Shafei, president of the Egyptian-Russian Foundation for Culture and Science, said that the Dabaa nuclear power plant project will achieve annual revenues of $17bn after exporting the produced electricity, pointing out that Egypt will get the return on investment of nuclear reactors in 2023 after the first reactor starts operating. Al-Shafei said the government would repay the first instalment of the loan to the Russian side in 2029 at a rate of two instalments annually for 42 years with an annual interest rate of 3%. He noted that operating the four reactors for 60 years will generate an income of $264bn.

Furthermore, the Dabaa nuclear power plant would mark a qualitative change in the relationship between Egypt and Russia, said Karim Al-Adham, former president of the National Center for Nuclear Safety and Radiation Control (NCNSRC). Al-Adham explained that has a major nuclear school since the 1960s and that Egypt has the cadres and competencies needed for the management of this project.

Approving contracts for NPP construction in Egypt finishes — Russia’s top diplomat

Approval of three contracts for construction of a nuclear power plant in Egypt will start the construction process, Russian Foreign Minister Sergey Lavrov said on Monday after the talks with Egyptian Foreign Minister Sameh Shukri.

“As for the construction of a nuclear power plant, the main contract was signed in December 2016. At the final stage there are three more contracts – the signing will allow the construction process to be launched in practical terms,” he said.

“We have many other large-scale projects, the discussion of the nuclear power plant project is still in progress,” Lavrov said. “I hope that the forthcoming meeting of the intergovernmental commission in September will help advance the issue and the project of creating an industrial zone on the banks of the Suez Canal with participation of Russia,” he added.

The Russian foreign minister also expects that in the next 1-3 months consultations will begin, and after that – full-fledged negotiations between the EAEU and Egypt on the possibility of creating a free trade zone.