Rosatom is working to make the El Dabaa nuclear power plant project in north-eastern Egypt happen. The intergovernmental agreement on construction was signed in November 2015, with the total cost of the project estimated to be $30 billion. According to the project roadmap, El Dabaa is to come into service by 2028-2029.
The project involves the construction of a 4,800 MW nuclear power plant with 4 reactors (1200 MW each). The construction was to commence at the end of 2020/beginning of 2021, but the project has been suspended due to COVID-19. Licensing has also been delayed and is now expected in the 2H of 2021.
The project involves the construction of a 4,800 MW nuclear power plant with 4 reactors (1200 MW each). The construction was to commence at the end of 2020/beginning of 2021, but the project has been suspended due to COVID-19.
According to Vladimir Putin, Russia could assign a credit for $25 billion for the construction. «It is good credit at a good interest rate. Repayment would commence from 2029. These are good, preferential terms» he said. The loan tranches of $3-4 billion per annum would be required if construction starts.
However, the source of credit remains unknown. As stated by Anton Siluanov, Russian Minister of Finance, it could be issued from the Russian sovereign wealth fund. However, according to fund rules, investments are only possible if a country’s credit rating is at least AA- (Fitch and S&P) or Aa3 (Moody’s). Egypt currently only has a ‘B’ (S&P). Check our post below (September, 5) to find out the S&P credit ratings of other African countries.
By the end of 2019, three tenders have been awarded to Egyptian companies (Petrojet, Hassan Allam Construction and Arab Contractors). Currently, Rosatom is working on the project design and licensing.