Egypt takes $25 bln loan from Russia to build nuclear plant

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Egypt takes $25 bln loan from Russia to build nuclear plant

Post by DJKeefy » Fri May 20, 2016 8:26 pm

Egypt's president Sisi approved a $25 bln loan from Russia to build a nuclear power plant in Dabaa, according to the state's official newspaper published on Thursday.

The presidential decree 484 for the year 2015 stated that a government loan from Russia must be taken before the nuclear power plant can be established in Egypt.

President Abdel Fattah al-Sisi signed a nuclear power plant deal with Russia last November, just days after the Kremlin’s unilateral announcement that the Russian charter flight which blew up over Sinai last October was downed by an act of terrorism.

A Russian passenger airplane crashed in the Sinai peninsula, killing all 224 people on board. The plane was heading from the Egyptian resort city of Sharm al-Sheikh to St. Petersburg in Russia.

In a press conference following the signing ceremony, Sisi described the Russian proposal as "the fastest" and the "best" deal on the table, stressing that the nuclear programme will be used for peaceful power-generation purposes.

It’s "a message of hope and peace to Egyptians and the world," he added.

He also assured that Egypt is committed "firmly and fully" to the non-proliferation treaty ratified by Egypt which prevents the use and dissemination of nuclear weapons.

"The Dabaa nuclear plant will be the largest Russian-Egyptian project since the Aswan dam," Sergey Kiriyenko, the head of Russia's state-owned nuclear firm Rosatom, previously told the media, adding that this will mark a new chapter in the history of the two countries’ bilateral relations.

Source: http://en.aswatmasriya.com/news/details/16938


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Re: Egypt takes $25 bln loan from Russia to build nuclear pl

Post by DJKeefy » Fri May 20, 2016 8:44 pm

I love Egyptians and wish all the best for them, yet I worry about their different mindset, I just hope the people who they employ to work there are highly trained and know they have to follow the rules by the book 100%. :sd
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Re: Egypt takes $25 bln loan from Russia to build nuclear pl

Post by Who2 » Fri May 20, 2016 10:04 pm

And we love Russians, To Russia with Love.... 8)
"The Salvation of Mankind lies in making everything the responsibility of All"
Sophocles.

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Re: Egypt takes $25 bln loan from Russia to build nuclear pl

Post by Hafiz » Sat May 21, 2016 11:29 am

The whole region is ‘at it’ and a lot of them doing it with a bear whose achievements include Chernobyl. The plans of these nuclear newcomers are heroic especially considering they have no track record in this dangerous industry and a poor record in distancing themselves from or protecting themselves from terrorists.

Here are some quotes from a recent opinion piece in a US publication written by two UK based researchers – one of them Cairo educated.

“The Middle East is now home to the greatest number of “nuclear newcomers” in the world, with at least six countries in total actively pursuing nuclear power. From one, in 2011, Iran became the first country in the region to operate a nuclear reactor. Tehran’s long-term plans include an ambitious expansion of its nuclear energy capacity by eight additional power reactors, something generally condoned by the recent nuclear deal.

For their parts, Saudi Arabia and the United Arab Emirates began to pursue nuclear power in 2010 and 2009, respectively. Both countries are driven by efforts to diversify their energy mix, and also use nuclear energy as a status symbol in the context of their strategic competition with Iran.
Saudi Arabia has perhaps the most ambitious nuclear plans, with a goal of building 16 reactors by 2032. The United Arab Emirates’ first reactor is under construction, with an expected completion date in 2017. Egypt has also revived its plans to build a series of nuclear power reactors in Dabaa on the coast of the Mediterranean. It is joined by Turkey and Jordan, which are building nuclear power reactors that are expected to be operational by Russia 2020 and 2025, respectively.

…..Russia’s business model, though, is uniquely appealing to Middle Eastern governments. Rosatom (the state owned reactor builder) is willing to build, own, and operate nuclear reactors, selling the electricity they generate back to a country at a guaranteed price. Russia has also promised to provide training and educational opportunities in nuclear technology for locals, which will help create jobs.

This model has clear benefits for both sides. Russia’s nuclear partners receive a sustainable, environmentally friendly supply of electricity, even as they avoid some of the high up-front construction costs that have dissuaded governments from pursuing nuclear power in the past. Moscow profits from the sale of electricity and the use of a predominantly Russian supply chain for construction, and it establishes vital long-term economic links with Middle Eastern powers in the process. In addition, these deals provide Moscow with an opportunity to project itself as a scientifically advanced partner, reclaiming the former Soviet Union’s role in industrializing Algeria, Egypt, Iraq, and Libya in the Middle East during the Cold War.”
https://www.foreignaffairs.com/articles ... iddle-east

The Egyptian co-author of this opinion piece, Hassan Elbahtimy, seems well qualified on Egypt and nuclear power.

Given that Egypt has borrowed US$25 billion from the bear I guess the build, own, operate financial model suggested by these authors is not going to apply in this case. Obviously Egypt wants to 'manage' the build. Odd. Others seem to be using the Russians to do the build and operation. Isn’t Egypt already loaded with debt and debt repayments? Wouldn’t the new debt need to be repaid in scarce US$? Maybe Egypt’s motives are about ensuring that local ‘firms’ get a shake – or a salute and these benefits might not be available if the Russians did the build.

There is no evidence that there was a competitive bid to ensure the Egyptian tax-payer got the best deal.

The President states that the Russian bid was the fastest - compared with whom - and anyway being the fastest in this line of business should be a reason for worry not pride.

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Re: Egypt takes $25 bln loan from Russia to build nuclear pl

Post by newcastle » Sat May 21, 2016 12:16 pm

Russia is set to provide Egypt with a $25 billion line of credit to construct the nation’s first nuclear power plant.

The plant is set to built in Dabaa and the loan will cover 85% of the costs. It will be repaid over 22 years, with the first repayment scheduled for 2029, at an annual interest rate of three percent.

Russia is going to contribute engineers, scientists and general staff to help establish and run the plant.

http://www.globalresearch.ca/iran-2-0-r ... nt/5494581

I can't find the article now but I did read that the idea was to repay the loan out of the receipts of selling the electricity generated.

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Re: Egypt takes $25 bln loan from Russia to build nuclear pl

Post by carrie » Sat May 21, 2016 12:39 pm

Well this should please MT, no more power cuts.

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Re: Egypt takes $25 bln loan from Russia to build nuclear pl

Post by Who2 » Sat May 21, 2016 1:21 pm

carrie wrote:Well this should please MT, no more power cuts.
Ha!..... 8)
"The Salvation of Mankind lies in making everything the responsibility of All"
Sophocles.

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Re: Egypt takes $25 bln loan from Russia to build nuclear pl

Post by Major Thom » Sat May 21, 2016 2:00 pm

Dabaa is in the north of Egypt, where all the money seems to be going, I have no doubt this will have any effect on Luxor I stand corrected if anyone knows of any cash coming Upper Egypt's way, maybe a new roundabout or a new municipal building but not much more. How about a new full body scanner for Luxor hospital, or what happened to the Italian food processing factory that was going to be built 3 years ago

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Re: Egypt takes $25 bln loan from Russia to build nuclear pl

Post by carrie » Sat May 21, 2016 2:38 pm

OK MT lets have the nuclear power plant built just outside Luxor, I will feel much happier and safer. :roll:

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