AECL in Argentina CANDU deal

2 August 2007

Atomic Energy of Canada Limited (AECL) has signed a Memorandum of Understanding (MOU) with Nucleoeléctrica Argentina (NASA) to enter into commercial negotiations to define the contracts and project delivery model for a new 740 MW CANDU 6 nuclear power plant in Argentina.

The decision to proceed with negotiations is based on the results of a joint feasibility study completed in April 2007. Terms of the MOU negotiations will cover technology transfer, procurement for the scope of supply in Canada, technical assistance AECL's support in engineering, local supply, project management and construction and commissioning management.

NASA will be the project manager of the new station, and AECL will provide the technical assistance required during the construction and the Canadian equipment content. The results of the contract and project delivery model negotiations will be submitted by NASA to the government of Argentina for final review and approval by the end of April 2008.

In May 2006, AECL announced an agreement for nuclear energy cooperation with Argentina that specifies a number of nuclear-related projects on which AECL and NASA would collaborate. These projects include life extension to the Embalse CANDU 6 power plant, a feasibility study for the next CANDU station, and assistance to NASA to complete a heavy water reactor originally supplied by Germany.

The agreement also includes the potential for a second unit, the design of which is based on the twin CANDU 6 units in Qinshan, China with certain modifications made by NASA.

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