KEPCO Makes All-Out Efforts to Win Saudi Arabian Nuclear Power Project
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KEPCO Makes All-Out Efforts to Win Saudi Arabian Nuclear Power Project
KEPCO President Kim meets with Al-Sultan, president of the King Abudullah City for Atomic and Renewable Energy in Riyadh, and discusses ways of promoting bilateral cooperation

29(Wed), Aug, 2018




KEPCO President Kim Jong-kap




KEPCO President Kim Jong-kap meets with Al-Sultan, president of the King Abudullah City for Atomic and Renewable Energy in Riyadh, Saudi Arabia, on Aug. 1. (Photos: KEPCO)



Korea Electric Power Corp. (KEPCO) is making all-out efforts to land a project to build two 1400MW-class nuclear power units in Saudi Arabia. Korea has made it onto the list of contenders who will vie for the project along with the United States, China, Russia and France. Saudi Arabia¡¯s selecting of five countries, three more than originally scheduled, to leverage its negotiating power is apparently making Korea stage a harder uphill battle than initially thought.


As the final winner of the project is to be announced next year, the bidding race among the five contenders is already heating up with closed doors negotiations. KEPCO recently lost the right of a preferred bidder to acquire a British government project to build the Moorside Nuclear Power Station from Toshiba.


The Korean power company is hoping to win the Saudi Arabian nuclear power project, which will be essential for the resurgence of the Korean nuclear industry, which is in danger of extinction in the wake of the Korean government¡¯s energy paradigm shift of weaning nuclear power off the nation.


KEPCO President Kim Jong-kap met with Al-Sultan, president of the King Abudullah City for Atomic and Renewable Energy in Riyadh, Saudi Arabia, on Aug. 1 and explained Korea¡¯s preparations for winning the project and discussed ways of promoting bilateral cooperation.


KEPCO President Kim¡¯s visit to Saudi Arabia was designed to help KEPCO being selected as one of preliminary bidders, secure a vintage point in the fierce bidding race, a KEPCO official said.


As KEPCO made it to the shortlist of preliminary bidders, the power company has entered into second-stage bidding strategy mode with the Korean government. On July 2, a center to support the bid for the Saudi Arabian nuclear power project was opened in which an inaugural meeting of a nuclear power export strategy consultative committee took place.


Action plans in core areas of concern with the Saudi Arabian side, including localization and manpower development, have been in the making to lay the groundwork to win the project. As part of the efforts to win the project, Korea will hold a local road show in Saudi Arabia and establish a localization plan through the establishment of partnerships between the two countries.


KEPCO President Kim said, with the start of the second-stage bidding, competition to win the project is expected to get fiercer. KEPCO plans to promote collaboration with the government and respond with Korea¡¯s teamwork coupled with the consolidation of capabilities of the Korean nuclear power industry so that Korea can embark on a new era following the winning of the Barakah Nuclear Power Plant project in the United Arab Emirates.


KEPCO is feared to suffer a setback in business performances as the power company, which lost the right of preferred bidder status in the UK nuclear power project, is in hot water to alleviate households¡¯ burden with huge electricity charges to beat an unprecedented head spell prevailing this summer.


The government¡¯s energy paradigm shift has forced KEPCO to enter a management emergency mode. Making matters worse, KEPCO¡¯s loss in the UK nuclear power project is sure to deal a blow to the power company. KEPCO had negotiated with Toshiba to acquire a 100 percent stake in NeGen, the owner of a project to build three nuclear power unites in the UK by 2025. 


 In an interview with a vernacular daily, Prof. Kim Hee-jib of Seoul Nation University said a focus on settling the nuclear power project negotiations could have a bigger minus factor in a long-term perspective.


 It (KEPCO¡¯s loss) served as a good opportunity to make a wise decision in consideration of risks and profits. Even if so, it doesn¡¯t matter, since the reason is that future suggestions based on wiser conditions can¡¯t be better, he added.







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