Egypt MPs to vote on tax exemptions for contractors, workers building Dabaa's nuclear power plant

Gamal Essam El-Din , Thursday 20 Oct 2022

The Energy and Environment Committee of the House of Representatives approved on Wednesday new government-drafted legislative amendments to the law regulating the performance of the country's Nuclear Power Plants Authority (NPPA), which aim to speed up the construction of Dabaa nuclear Power Plant (NPP).

Dabaa s nuclear power


The amendments include exempting contractors, sub-contractors, equipment suppliers and workers who are building and operating the NPP from taxes.

The amendments also change NPPA's name to the Nuclear Power and Renewable Energy Plants Authority (NPREPA) to become the sole owner and operator of nuclear power and renewable energy plants in Egypt.

"These amendments aim to serve the agreement with the Russian company of Rosatom by exempting contractors, sub-contractors, equipment suppliers and workers who are building this project from all types of taxes," explained MP  Hossam Awadallah, the chair of the Energy and Environment Committee.

Awadallah added that the amendments are in line with the 2016 agreement contract between the NPPA and Rosatom, which is in charge of constructing the four nuclear reactors at the plant.

He stressed that "this tax exemption will help implement the Dabaa project on schedule."

They serve the countries goals of increasing dependence on clean and environmentally-friendly power generation, Awadallah noted.

In August, South Korea's Hydro and Nuclear Power Co, Ltd (KHNP), a nuclear power subsidiary of the state-run South Korea Electric Power Corp., has signed a $2.25 billion deal with the Russian Atomstroyexport (ASE), a construction subsidiary of Rosatom, to build facilities, equipment and supply materials for the Dabaa NPP.

In recent months, the Ministry of Electricity and Renewable Energy along with the NPPA along with Rosatom have been ramping up efforts to speed up the process of constructing the four nuclear reactors at the Dabaa plant.

 In July, the concrete foundations for the plant's first nuclear reactor were laid.

Chair of NPPA Amgad El-Wakil told Al-Ahram newspaper last month that the electricity ministry will lay the concrete works for the plant's second reactor on 19 November.

Upon completion, the four reactors are expected to operate at a full capacity of 4,800 MW – with each reactor generating 1,200 MW - by 2030.

The Dabaa NPP is situated 140 km southwest of the Mediterranean city of Alexandria and 320 km northwest of the capital Cairo.

Minister of Electricity and Renewable Energy Mohamed Shaker had stressed in August that "we are doing our best to ensure that the construction work on the four-reactor plant is completed according to schedule."

"The construction of the Dabaa NPP is moving at a steady pace and there is close coordination among all state authorities to ensure the success of Egypt's national nuclear power programme," Shaker added.

The House of Representatives is scheduled to hold its next round of plenary sessions on Sunday 23 October.

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