The Emirates Nuclear Energy Corporation (ENEC) announced Sunday that it had selected a team led by Korea Electric Power Corporation (KEPCO) to design, build and help operate civil nuclear power plants for the United Arab Emirates peaceful nuclear energy program.

"Following a comprehensive and detailed review of three excellent bids from some of the world's top nuclear suppliers, operators and construction firms, ENEC has determined that the KEPCO team is best equipped to fulfill the government's partnership requirements in this ambitious program," said Khaldoon Al Mubarak, Chairman of ENEC. "The nature of this project will require a partnership that endures for nearly 100 years. This arrangement has driven us to focus on a very careful assessment of what characteristics among the competing consortia would translate into the best over-all fit in a partner for our program."

"We look forward to a long and productive relationship as we work toward powering the future growth of the UAE with low-carbon, peaceful nuclear energy," Mr. Al Hammadi said.

The contract calls for the KEPCO team to design, build and help operate four 1,400-MW civil nuclear power units. The value of the contract for the construction, commissioning and fuel loads for four units equaled approximately US$20 billion, with a high percentage of the contract being offered under a fixed-price arrangement.

In addition to the delivery of the four plants, ENEC and KEPCO have also agreed to key terms under which Korean investors will have an equity interest in the project.

The first of the four units is scheduled to begin providing electricity to the grid in 2017, with the three later units being completed by 2020.

Given the growth in electricity demand projected for the United Arab Emirates, it is expected that additional units beyond the original four will be procured in the future as the UAE expands its fleet of civil nuclear power plants.

© 2009 Mena Report (www.menareport.com)