nuclear-news

Egypt going into $25 billion debt to Russia, to buy nuclear reactors

Russia lends Egypt $25 billion for Dabaa nuclear power plant, AL-Monitor, 26 Feb 20,  CAIRO — Atomstroyexport, a subsidiary of Russia’s State Atomic Energy Corporation, or Rosatom, announced Feb. 17 that three Egyptian companies were awarded a tender offer for constructing the first phase of Egypt’s Dabaa nuclear power plant.

The three Egyptian companies, competing among 10 others, are Petrojet, Hassan Allam and the Arab Contractors.

The Egyptian government intends to start negotiations within the next few days with the Egyptian Nuclear and Radiological Regulatory Authority to obtain permission to start implementing the Dabaa nuclear plant project. The plant will be constructed in the Dabaa area of Marsa Matrouh governorate in the west of the country.

The Dabaa plant is the first nuclear plant for peaceful uses, with a total capacity of 4.8 gigawatts. The project is financially supported by Rosatom through a Russian loan amounting to $25 billion………….

Yemen al-Hamaki, a professor of economics at Ain Shams University said that under this agreement Egypt will use the loan to finance 85% of the total value of the building, construction, insurance and all other related works. Egypt would bear the remaining 15% in the form of installments. The loan is for 13 years at a 3% annual interest rate. If Egypt fails to repay any of the annual interest within 10 working days, it shall be subject to arrears of 150% of the interest rate calculated on a daily basis

Hamaki also warned that this massive Russian loan of $25 billion could blow up Egypt’s foreign debts. “This loan is a great risk to the future because it burdens the state and should be settled from the wealth and economic assets of the future generations,” she said, adding, “Egypt’s resorting to many loans foretells its inability to attract foreign investments, while tourism revenues continue to decline.” …..  https://www.al-monitor.com/pulse/originals/2020/02/power-plant-nuclear-egypt-russia-loan.html#ixzz6F5iQcolQ

February 27, 2020 - Posted by Christina Macpherson | Egypt, marketing, Russia