Jordan Selects Russia's Rosatom to Build First 2,000-Megawatt Nuclear Plant

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Rosatom (Moscow), Russia's state nuclear energy corporation, has been selected by Jordan's government to build the country's first 2,000-megawatt (MW) nuclear power plant in Amra, a desert area north of capital city Amman.

"Russia's Rusatom Overseas will operate the plant as a strategic partner," said Mohammed Momani, Jordan's information minister. "AtomStroyExport (Moscow) will be the provider of the nuclear technology. The governments of Russia and Jordan will sign an agreement on the project, which will cost around $10 billion, or maybe less."

"The two-reactor unit will be developed in two stages under a build-own-operate (BOO) scheme," said Khaled Tukan, head of the Jordan Atomic Energy Commission. "In the first two-year stage, detailed studies will be conducted and infrastructure will be built. In the second stage, a contract will be signed for the start of plant construction. The Russians will contribute 49% to the cost of the plant, and Jordan will handle 51%."

The plant is scheduled for completion in 2022.

"Jordan imports 97% of its energy needs," Tukan said. "The country needs to take advantage of nuclear energy, which will also enhance the national economy." Jordan is looking to source 30% of its energy from nuclear power by 2030.

Currently, energy prices have caused social pressures. The cost of buying diesel fuel internationally has risen to more than $5 billion annually over the last two years, at a time when the natural gas pipeline from Egypt has been sabotaged.

The Jordan Times reports that the government plans to raise the electricity price by 18% over the next two years to balance out subsidies, which see the state utility NEPCO selling electricity at about half the production cost.

In August, Jordan approved the construction of a 5-MW nuclear research reactor at the Jordan University for Sciences and Technology, near the northern city of Irbid.

The Korean Atomic Energy Institute (Daejan, South Korea) and Daewoo Engineering and Construction Company (KSX:047040) (Seoul) will build the reactor, which is scheduled to begin operations in 2016. South Korea is providing a loan of $70 million to back the $130 million project.

For related information, see May 1, 2012, article - Jordan Names Russian Company and French-Japanese Consortium on Nuclear Shortlist.

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