Chosen as Single Source Bidder for Turbine Islands
Korea Hydro & Nuclear Power (KHNP) has been selected to participate in Egypt’s El Dabaa nuclear power plant project, the state-run company said on Jan. 2.
KHNP said it has been selected as the single-source bidder for the contract of "turbine islands" of El Dabaa nuclear power plant units 1-4. The contract involves procurement of equipment and materials and construction of the main and auxiliary buildings and structures.
The El Dabaa plant, which is Egypt's first nuclear power plant, will be built by Atomstroyexport (ASE), a subsidiary of Moscow's state-owned Rosatom, with financing from the Russian government. Construction is scheduled to begin this year.
KHNP plans to conclude negotiations on details of the contract, including the contact amount, by February 2023 and sign an official contract around the end of April of the same year. KHNP did not disclose the exact amount of the contract due to confidentiality.
KHNP and ASE have a long history of cooperation as leaders of the nuclear industry. ASE designated KHNP as its partner in 2019. It reportedly took into account KHNP's experience in building a nuclear power plant in the desert. Starting with this project, KHNP expects to be able to join hands with ASE in other nuclear power plant projects in the future.
The El Dabaa project is expected to help the Korean nuclear power plant industry get out of a big slump caused by the Korean government’s nuclear phase-out policies. Currently, the construction of all new nuclear power plants, including Shin Hanul Units 3 and 4, has been suspended due to the Moon Jae-in administration’s nuclear phase-out policies. “If the deal is sealed, Hyundai Engineering & Construction and Doosan Heavy Industries & Construction will be in charge of construction and other Korean companies will participate in the supply of equipment and materials,” KHNP said.
However, KHNP's role in the El Dabaa project is mainly limited to the construction of affiliated buildings and procurement of some equipment. Russia will take charge of the primary system sector. The contract amount is also small compared to the total size of the nuclear power plant order.