Kwak Yeon-soo is a digital editor at The Korea Times creating, editing and curating digital content for the newspaper’s website, mobile app and social media. She previously covered a diverse array of cultural, political and business topics.
Korea at risk of losing exclusive right to maintain UAE reactors
The Barakah nuclear power plant Korea Times file
By Kwak Yeon-soo
By Kwak Yeon-soo
Concerns are growing over Korea's possible failure to win a long-term exclusive maintenance contract for the Barakah Nuclear Power Plant in the United Arab Emirates (UAE), according to nuclear industry officials, Monday.
Korea Hydro & Nuclear Power (KHNP) was initially expected to win a 3 trillion won ($2.5 billion) maintenance project that will last for up to 15 years after the plant is completed.
But the Middle Eastern country has reportedly decided to open a bid for several players and break down the long-term project into several shorter-term projects to reduce costs.
The UAE and Nawah Energy Company, the operator of the Barakah nuclear plant, are yet to make the final decision on the maintenance project for the Barakah nuclear power plant, but it is unlikely KHNP will solely snatch a long-term maintenance deal.
If so, the project would be worth 500 billion won, falling short of 3 trillion won as the KHNP expected initially.
Nawah Energy has allegedly been in talks over the maintenance deal with three bidders including a KHNP-led consortium, Doosan Babcock and Allied Power of the United States.
Although Korea won the $18.6 billion design-and-build contract in 2009, operation and maintenance of the plant are regarded as more lucrative, considering the 60-year lifespan of a nuclear power plant.
“We cannot disclose the details because we signed a non-disclosure agreement and we are still in discussion,” a KHNP official said. “The UAE will release a statement once it finalizes negotiation with the Korean consortium of KHNP and the Korea Electric Power Corp. (KEPCO).”
“I think the UAE is considering various options in awarding a maintenance contract, which may reduce the value of the order,” a KEPCO official said.
Against the backdrop, many are condemning the government's nuclear phase-out policy for causing problems. However, the Ministry of Trade, Industry and Energy denied responsibility.
“The Emirates Nuclear Energy Corporation (ENEC) has shown support for the government's nuclear phase-out policy, so it's groundless to say the UAE is doubtful about whether Korea will maintain its nuclear power plants,” a trade ministry official said.