Korea Hydro & Nuclear Power Co. (KHNP), South Korea’s state energy firm, said on Sunday that it has signed a $920 million deal with Emirates Nuclear Energy Corporation (ENEC) to operate four nuclear reactors currently under construction by the Korean firm in Barakah in Abu Dhabi, the United Arab Emirates. It is the first time for the firm that has been providing nuclear components and construction services to be in charge of maintenance and operation of a nuclear operation overseas.

Based on the agreement signed on July 20, KHNP will dispatch a total of 3,000 employees to the Middle East country until 2030 - about 210 every year - starting May, next year. They will be responsible for the operations of four advanced power reactor (APR)-1400 nuclear reactors that are under construction as part of UAE’s project to build its first nuclear power station.

ENEC will pay for the labor and living cost and other staff expenses. The total size of the deal is estimated to be $920 million - $600 million in service fees and separate $320 million for expatriate packages on housing and education subsidies. Each Korean expat will receive about 300 million won ($263,875) per year including housing expenses.

Cho Seok, president and chief executive of KHNP, said that it is almost unprecedented globally for foreigners to be recruited to oversee nuclear facility.

He expressed hope that KHNP will be able to renew the operations contract once it expires in 2030 to fixate Korean presence in the nuclear power plant site in Barakah.

In 2009, KHNP participated in a consortium led by the state-run Korea Electric Power Corporation (Kepco) that won a historic deal to build four nuclear reactors in the UAE. It was Korea’s first deal to export nuclear reactor technology. KHNP has completed installing the first of the four reactors in May, last year, after breaking ground in July, 2012. The construction of all four reactors will be complete by May, 2020.

Initially, the UAE had plans to operate nuclear reactors on its own. However, it has judged that it needed Korean expertise for smooth operation.

Multiple industry sources note that the latest deal will place Korea in a more favorable position to clinch four additional nuclear reactor orders that are expected to be given out by the UAE in the future.

By Seo Dong-cheol

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