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Egypt's Sisi approves $25 bln loan from Russia to build Dabaa nuclear project

The loan, with a 22-year maturity, will cover 85 percent of the cost of developing Egypt's first nuclear power station

Ahram Online , Thursday 19 May 2016
(Photo: Abdel-Fattah El-Sisi official Facebook page)
Egypt's President Abdel-Fattah El-Sisi stands as Russian - Egyptian officials sings the first Egyptian nuclear plant deal (Photo: Abdel-Fattah El-Sisi official Facebook page)
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Egypt’s President Abdel-Fattah El-sisi has approved a loan to be provided by the Russian government to finance the construction of the country’s first nuclear project, state news agency MENA reported Thursday citing presidential decree No.484/2015 in the official gazette.

The loan will amount to around $25 billion, MENA added.

In November, the Egyptian government signed an agreement with Russia to build Egypt's first nuclear power plant at Dabaa, located in the country’s Marsa Matrouh governorate, which aims to generate total of 4,800 megawatts through four units.

The loan, which has a 22-year maturity at an interest rate of three percent, will cover 85 percent of the project’s costs. Egypt will provide the remaining finance, Russia Today news website said in Novemeber.

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Tut
20-05-2016 01:53pm
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Strategic thinking
If the imminent danger of having a nuclear reactor in a God forsaken region riddled with terrorism and suicide bombers is not enough to make decision makers in Egypt think twice, perhaps the economics of it should wake them up. $30 billion would go very long way in creating wind and solar farms capable of generating similar output in a much safer environment, and much sooner. It is clear that major part of the decision is driven by an inferiority complex to join the nuclear club and the other part is drooling over the return of cheap Russian tourists. No Strategic thinking at all!!
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Tut
25-05-2016 09:50pm
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Nuclear fusion power-generation!
Are we talking about the same country? the country that still after 50 years can't figure out how to enough grow wheat to feed itself? or the country that had its major cities paralyzed with some rain and all sewer hell broke open? You want us (the people) to trust having a nuke reactor in our backyard, managed by the same competencia!! If a few Egyptian scientist want to dabble in Nuclear research by all means go and find funding for a research lab to satisfy your technical ambition but don't waste $30b on a pipe dream in a country that can't even feed itself!
Adel Ahmad
25-05-2016 12:12am
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I don't think you really do
The countries you just mentioned are not abandoning NPPs all-together they are just reducing their number, since it is essential to have at least a couple of them for nuclear research. Also several leading technological countries around the world such as China and India are building tens of new NPPs. Its not mutually exclusive, you know, we can do both at once not at the expense of the other. Besides, if you've been following news lately, a large number of wind and solar farms are being built right now in Egypt, by giants such as Siemens, GE, and many other companies. In fact, Siemens will build a wind towers factory here in Egypt so we can build and export them. The whole idea here is diversification of energy sources and not just relying completely on renewables because that is just not feasible for a country like Egypt at the moment. Furthermore, if you really think that nuclear technology is now obsolete, I suggest you read about nuclear fusion power-generation and how that can cha
Tut
22-05-2016 08:26pm
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I do get it, Ahmed …
So does Germany, Japan, and the rest of the ‘don't get it’ world. At least 5 leading countries around the world would have given Egypt a PPA (sure you know what it is) in Wind and/or Solar for much more money (not a loan) than the $25b the declining Russian economy can spare. IF (1) Egypt is investment-friendly, (2) decision makers do understand how a feasibility study work, and (3) we really care about the well-being of our people. As to the training of Egyptians on nuclear technology (a) what for ? it’s yesterday’s technology not tomorrow (b) rather than a handful of people trained on nukes it would’ve been thousands on green technologies, and millions of jobs not just a few hundreds. If the smartest countries in the world (including the Nuke leader USA) are diverting their new investments to Solar and Wind don’t get it count me in on ‘not getting it’!
Adel Ahmad
21-05-2016 09:48pm
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Great strategic thinking, actually
I don't really think you get the idea behind this decision. Its not like we had $25bln and we decided to blow it all on a nuclear plant, its a loan that Russia made available only for this project and we couldn't have used it for anything else because its their money and they're the ones making this offer. The Russians also wanted to kinda subsidize its state-owned company Rosatom cuz it was having a loss in revenues. Not to mention, the Russian offer includes training hundreds of Egyptian nuclear scientists in Russia and a transfer of nuclear technology and infrastructure to Egypt. Overall, a very economical, very safe - Russia has more than a hundred NPPs working in perfect condition and top security standards all around the world so the Chernobyl argument is not a valid one anymore- a brilliant win-win decision for both sides.
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Samantha Criscione
19-05-2016 10:30pm
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Nuclear Power -- a very bad idea, especially in the midst of a war against terrorists
Nuclear power is a more than dubious option under normal circumstances. What could go wrong? Think Three Mile Island in the US. Think Japan. And speaking of the Russians, think Chernobyl. If something goes wrong with a conventional power plant, you have a big problem. With nuclear power you have catastrophe -- potentially world catastrophe. That said, what is a bad idea for any country, is an order of magnitude worse for Egypt, which is in the middle of a protracted war against the Muslim Brotherhood. Is it really necessary to give those gentlemen a target capable of destroying the country -- or making a large part of it unlivable for millions of years? Very, very bad idea. Use the $25 billion to help the people, not to give a doomsday gift to the Brotherhood maniacs. -- Samantha Criscione
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