Egypt, Russian Federation sign deal to build nuclear plant

Moscow and Cairo signed an agreement for Russian Federation to build a nuclear power plant in Egypt, with Russian Federation extending a loan to Egypt to cover the cost of construction.

“The nuclear power plant project in Dabaa will become the largest joint project between Russia and Egypt since Aswan dam project; this is sincerely new page in history of Russian-Egyptian intergovernmental relations”, said Rosatom Chief Executive Officer Sergey Kiriyenko.

Egyptian President Abdel Fattah al-Sisi also weighed in on the deal, calling it significant proof of the endurance of relations between the two countries.

“Egypt wanted to send a message that the plane crash won’t influence the bilateral relations”, he added.

While Egypt has been considering a nuclear plant at Dabaa on and off since the 1980s, it froze its plans after the 1986 Chernobyl disaster.

Egypt, with a population of 90 million and vast energy requirements, is seeking to diversify its energy sources.

Sisi have always reiterated that power is a key in developing Egypt, reviving its ailing economy and eventually creating job opportunities.

Sisi said Egypt seeks to generate around 4,300 megawatts of power in the coming three years through the establishment of solar and wind energy plants.

Government officials from Egypt and counterparts at Russian nuclear plant construction giant Rosatom hailed the signing of financing and construction deals that call for four third-generation nuclear reactors to be built within the next 12 years near the seaside city of Dabaa, Egypt.

“The state’s budget will not shoulder any of the cost of building this station. It will be paid back through the actual production of electricity that will be generated by this plant”, he said.

Additionally, said the release, a “Memorandum of Understanding between the Russian Federal Service for Environmental, Technological and Nuclear Supervision and the Egyptian regulatory body for nuclear and radiological safety has been signed in order to facilitate further development of the nuclear infrastructure”.

“This was a long dream for Egypt, to have a peaceful nuclear programme to produce electricity”, Sisi said.

According to Rosatom’s profile on the Bulletin of the Atomic Scientists, the company was a leader of the Dollars 500 billion global nuclear energy market in 2014, “building 37% of all new reactors in the world”.

The first two reactors will be completed within nine years from the start of the construction, and Sisi said at the press conference that “the reactors can withstand a collision by a plane of 400 tons at a speed of 150 meters per second”.

For Moscow, the Egypt award cements its position as the dominant nuclear power provider in the region.