KEDO executives agree deal

30 November 1998

The Korean Peninsula Energy Development Organisation (KEDO) executive board has agreed to a cost sharing mechanism which should keep on track the construction of two LWRs in North Korea. Under the agreement South Korea will supply 70% of the costs, Japan will contribute $1 billion and the European Union 75 million ECU. The United States has reconfirmed its commitment to seek funding to supply heavy fuel oil. The current budget estimate is $4.6 billion.

Progress on the construction of the two reactors has been hampered by Western suspicions that North Korea was not meeting the terms of the agreement. The country committed itself to ending its nuclear development programme when it signed the KEDO deal. However the international community doubts whether North Korea has complied; the country is suspected of a clandestine atomic weapons programme.

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