The Emirates Nuclear Energy Corporation (ENEC) and the Korea Electric Power Corporation (KEPCO) have today signed a Joint Venture (JV) agreement for a long-term partnership and cooperation for the UAE’s Peaceful Nuclear Energy Program.
KEPCO, the Prime Contractor for the Barakah Nuclear Energy Plant currently under construction in the Western Region of Abu Dhabi, has been working with ENEC since 2009 to deliver safe, clean, efficient and reliable nuclear energy to the UAE grid. With the signing of the JV, ENEC and KEPCO have established a new, long-term partnership to jointly capitalize on KEPCO’s 40 plus years of nuclear experience for the benefit of the Barakah project.
ENEC and KEPCO also announced the establishment of Barakah One PJSC, an independent subsidiary owned by both companies, which will represent the commercial and financial interests of the Barakah project. Under the JV, KEPCO will take an 18 percent stake in Barakah One, with ENEC as the majority owner of the remaining 82 percent. Nasser Al Nasseri, previously Chief Financial Officer of ENEC, has been appointed Acting Chief Executive Officer of Barakah One.
The agreement also entitles KEPCO to receive an 18 percent stake in ENEC’s subsidiary Nawah Energy Company (Nawah) and ENEC will remain as majority owner of the remaining 82 percent of the company. Nawah was established in May 2016 and is the entity mandated to operate and maintain Barakah Units 1 to 4.
“This is a significant milestone in the history of the UAE Peaceful Nuclear Energy Program,” said H.E. Khaldoon Al Mubarak, Chairman of the Board of Directors of ENEC. “The Joint Venture Agreement is an unprecedented partnership between two countries in the field of nuclear energy and is designed to further enhance our joint capacity to develop and operate a peaceful nuclear energy program in adherence to the highest standards of safety, quality, security and operational transparency.”
“The government of the Republic of Korea is pleased to be the long-term strategic partner for the UAE Peaceful Nuclear Energy Program. We will continue to support KEPCO in its international projects and it is our priority to ensure the success of the Barakah Nuclear Energy Plant. We are proud to be a supporter of this world-leading safe, reliable and cost-efficient peaceful nuclear project,” said Mr. Joo Hyunghwan, Minister for Trade, Industry and Energy of the Republic of Korea.
“The signature of this long-term partnership is the culmination of the positive collaboration between ENEC and KEPCO that has led the program since the start of the UAE Peaceful Nuclear Energy Program in 2009,” said H.E. Mohamed Al Hammadi, ENEC CEO. “With the signature of the Joint Venture agreement, both organizations are establishing a new nuclear corporation designed to guide the Barakah project into new levels of performance. With KEPCO as our partner, we now have the right structure to ensure the long-term sustainability of the Barakah project well into the future.”
“We are pleased to partner with ENEC in the United Arab Emirates Peaceful Nuclear Energy Program in the long-term. It is our top priority to devote our resources and efforts towards the successful delivery and operation of the first Korean-designed nuclear energy plant being built outside Korea,” said Mr. Hwan Eik Cho, President and CEO of KEPCO. “KEPCO will continue to collaborate with the UAE and provide its accumulated know-how and experience in developing nuclear energy plants, and we look forward to being the driving-force behind the cooperation between our two countries,” Mr. Cho added.
The Barakah Nuclear Energy Plants are scheduled for completion in 2020, with construction having started in 2012 following regulatory approval. The project is progressing steadily with overall construction of Units 1 to 4 now over 71 percent complete. All four units will deliver safe, clean, reliable and efficient nuclear energy to the UAE grid, pending regulatory reviews and licensing.