Key Facts & Comments

A South Korean consortium has won a $40-billion contract to build several nuclear reactors for the United Arab Emirates, industry sources said on Sunday.

By (Reuters)

Published: Sun 27 Dec 2009, 3:49 PM

Last updated: Wed 21 Aug 2024, 3:12 PM

The award is the largest-ever energy contract in the Middle East and one of the world’s biggest nuclear power plant contracts.

KEY POINTS

The award is the largest-ever energy contract in the Middle East and one of the world’s biggest nuclear power plant contracts.

The winning consortium included Korea Electric Power Corp, Hyundai Engineering and Construction, Samsung C&T Corp and Doosan Heavy Industries. — Work on the first nuclear plant in the UAE was expected to begin in 2012.

COMMENTS

Christian Koch, Director, International Studies, Gulf Research Centre

“For this deal, I think the first consideration would be to technical competency. Competitive prices played a key role in the UAE’s decision, especially now with the economic crisis everyone is trying to cut down on costs. In terms of the US and France, they will always play a role in the UAE’s military operations and this deal in no way will harm that relationship.”

Abdel-Khaleq Abdullah, Political Analyst, UAE University

“From all indications, the UAE’s nuclear programme is probably the most serious in the Arab world. It has committed so much to it ... and will probably be the first Arab country to go nuclear. It will set a standard for others to follow. This is going to add more areas of strength to the UAE as a regional power. It is not only saying it will diversify its economy but will also diversify its energy. Some will take it more critically than others and doubters will always be there.”

Han Byung-Hwa, Utility Research Team Leader, Hyundai Securities

“It is significant as Korea makes the first step in the world nuclear power generation market, which is seen to grow to 1,000 trillion won ($853.2 billion) by 2030. Such track record is very important to win additional deals in the power generation business.”

Al Troner, President, Asia Pacific Energy Consulting (APEC):

“The UAE’s choice must have been based on strictly commercial terms because in terms of political clout in the region it’s nil.

“Korea has a good track record in terms of safety and price and it’s a surprise to see the US and France are not part of the bid because they are the ones with the more political strength in the Middle East.”