“Russian NPP project is the best option for Egypt for its safety and cost”

Russia is ready to help Egypt not only to build a nuclear power plant, but also to establish an entire nuclear industry, Russian President Vladimir Putin said during talks with Egyptian President Abdel Fattah el-Sisi.

Head of the Real Sector Group of the Economic Department at the Institute for Energy and Finance Sergei Kondratiev noted: “Egypt’s economy has not made much progress in recent years. The reasons are many, including the lack of affordable fuel, food and energy. Egypt has to import oil. At the same time, energy consumption is growing by leaps and bounds there. The country’s capacities to produce fossil fuels, first of all gas, are pretty limited. So are its capacities to promote hydropower energy. Therefore, Egypt needs some stable and relatively inexpensive source of energy. The construction of a nuclear power plant could be a great solution. After all, in the nearest future the country’s population and its manufacturing capacities are going to grow pretty fast. Egypt is not the only country that seeks to build a nuclear power plant. In fact, many Middle Eastern states are considering this option. Among them are Jordan and the Gulf states, in other words, the countries that have considerable reserves of fossil fuels. However, all of them are very enthusiastic about the development of nuclear energy.

While choosing a partner to build a nuclear power plant, Egypt has to deal with two major issues. Safety is the first of them. In fact, the country is located in a very turbulent region. Egypt has to ensure safe operation of its nuclear power plant and prevent any emergencies, be it technological disasters or other situations. The second key issue is the prime cost of energy. In fact, Egypt is not a very rich country. The cost of the NPP project will determine its competitiveness in the country’s energy sector. In my view, the Russian project is the best deal for Egypt in terms of safety and cost. Our project is considerably cheaper than the projects offered by European and American companies by 1.5-2 times. Taking into consideration the weakening of the Russian ruble, our project will be even more competitive in terms of price. Atomstroyexport uses rubles to finance the most important facilities and works; therefore, the cost of the project in U.S. dollars will be even lower. We should also keep in mind that the project Russia offers today envisages a series of cutting-edge technological solutions that protect NPPs from possible accidences, like a molten core catcher.

Today Russian nuclear power plants are more resistant to all kinds of emergencies that are not related to technological processes. The fact that a power-generating unit can withstand a direct clash with an airplane is important for a turbulent and highly-populated country like Egypt. The Russian project looks particularly advantageous against this backdrop. As far as the project cost is concerned, our closest rival is China, however if we consider both the project cost and safety, the Russian project is unmatched. Besides, we offer an entire set of services, like personnel training at Russian universities and a possibility to promote other sectors of nuclear energy and manufacturing.

Cooperation with Egypt is not just about money. A nuclear power plant set to run for 50-60 years envisages closer economic and political ties in a very long run. After all, the countries will do their best to maintain good relations as long as the project is running. This project will also give Russia an opportunity to advance on the promising market of North Africa and the Middle East where we have not secured a foothold yet, which pertains not only to our nuclear technologies, but high-tech solutions in general. The last but not the least reason why we should expand our operations there is the rapid growth of the market on the back of the sharp population increase.

The construction of a nuclear power plant also means tremendous growth opportunities for the Egyptian economy, because the level of localization will never be high enough in Egypt for a multitude of natural reasons. After all, this is Egypt’s first project of this kind; thus, the country does not have enough specialists and cutting-edge technologies. At the same time, the Russian project envisages quite many jobs for locals, not only Russian specialists. Egyptians can be involved in construction works, networks installment and other operations. The project will require the participation of Russia’s high-tech industry, which will also give a boost to the Egyptian economy”.