KHNP pre-authorised to bid for construction work at El Dabaa nuclear plant

6 January 2022

As part of the current procurement of equipment and materials, as well as the construction of the main and auxiliary buildings and structures of the turbine islands of the El-Dabaa nuclear power plant in Egypt, Rosatom State Corporation pre-authorised Korea Hydro and Nuclear Power Co. Ltd (KHNP) as the single source bidder who is eligible to negotiate the terms and conditions of definitive contract for the proposed transaction, subject to KHNP's compliance with the ASE procurement procedures and the parties agreeing on such terms.

The parties plan to discuss the price and the main terms of the contract by the end of February and, if the negotiations are successful, conclude an agreement in compliance with all internal approval procedures by the end of April 2022. However, these target dates are preliminary.

At the same time, within the framework of the previously concluded agreement, AAEM LLC, a joint venture of Atomenergomash JSC and General Electric, will supply turbine hall equipment for units 1-4 of El Dabaa nuclear power station. Under the contract the company will be responsible for designing, manufacturing and supplying four sets of steam turbines, condensers, generators and select auxiliary equipment, and for technical field advisory services during erection and commissioning of supplied equipment at the power plant site. The plant will be equipped with ARABELLE™ half-speed steam turbines and GIGATOP™ 4-pole generators manufactured by General Electric.

The selection of contractors for provision of services and execution of work under the El-Dabaa NPP project is carried out in accordance with the procurement procedures of Rosatom State Corporation which are an integral part of the contracting process. Egyptian companies Petrojet, Hassan Allam and Arab Contractors were previously selected to be involved in construction work at the site.

The El Dabaa NPP, sited on the Mediterranean coast, will comprise four 1200MWe units with a Generation III+ VVER-1200 reactors. It is being constructed by Rosatom in accordance with a suite of contracts that entered into force in December 2017. The investment cost of the project is $30 billion, 85% of which is financed through a $25 billion Russian loan.

*Updated to clarify that KHNP has been pre-authorised to bid for work at El Dabaa rather than 'selected' for work at the plant

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