Nuclear Power Plant Exports Hampered by Ukraine Crisis... KHNP's Egypt Project in Uncertainty

Kepco's El-Dabaa Nuclear Power Plant Project in Egypt... 'Backlash' from Ukraine Crisis
Main Contractor is Russian State Nuclear Company... Government "Monitoring Ukraine Situation"

[Asia Economy Sejong=Reporter Lee Jun-hyung] The overseas nuclear power plant projects promoted by Korea Hydro & Nuclear Power (KHNP) are also facing the risk of collapse due to the Ukraine crisis. This is because Russia is taking the lead in the second phase construction project of the El-Dabaa Nuclear Power Plant in Egypt, where KHNP was a strong contender for the contract.

According to related ministries on the 2nd, KHNP is pushing forward with the bidding process for the Egyptian nuclear power plant, aiming for a formal contract by the end of next month. Previously, KHNP was selected as the sole negotiation partner for the contract of the second phase construction project of the El-Dabaa Nuclear Power Plant, including the turbine building, at the end of last year. The El-Dabaa nuclear power plant project is a large-scale project worth $30 billion (approximately 36 trillion KRW). If the contract is signed, KHNP's share is expected to be about 5-10%, amounting to at least several trillion won.

However, the Russian invasion of Ukraine, which erupted just before the contract signing, has emerged as a variable. This is because the main contractor that won the El-Dabaa nuclear power plant project as a turnkey contract is the Russian company JSC ASE. JSC ASE, KHNP's contracting counterpart, is a subsidiary of Rosatom, the Russian state-owned nuclear corporation. A KHNP official explained, "The specific contract schedule is determined by the client," adding, "For now, the scheduled contract signing date is the end of next month."

The nuclear power industry is also closely monitoring the situation. KHNP's overseas nuclear power projects had been dormant since winning the UAE Barakah nuclear power plant contract in 2008. The industry was filled with expectations that the El-Dabaa nuclear power plant could be a turning point for the domestic nuclear power ecosystem, which is on the brink of collapse due to the government's nuclear phase-out policy. Upon contract signing, Hyundai Engineering & Construction and Doosan Heavy Industries were planned to be responsible for the construction of the El-Dabaa nuclear power plant.

However, it is difficult for the government to intervene. A government official stated, "There is no sign of easing tensions surrounding Ukraine, and as the international community, including the United States, is strengthening sanctions against Russia, there will inevitably be negative impacts if the Ukraine situation prolongs," adding, "Related ministries are closely monitoring the developments."

This content was produced with the assistance of AI translation services.