Cairo, Moscow sign contract for Egypt’s first nuclear plant

Egyptian president Abdel Fattah el-Sisi (back-R) and his Russian counterpart Vladimir Putin (back-L) applaud as Egypt's electricity and renewable energy minister, Mohamed Shaker (R), shakes hands with Alexei Likkhachev, the director general of Russia's Atomic Energy Corporation Rosatom, after signing a bilateral agreement in Cairo on Monday. (AFP)
Updated 12 December 2017
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Cairo, Moscow sign contract for Egypt’s first nuclear plant

CAIRO: Egypt and Russia signed a contract on Monday for the building of Egypt’s first nuclear power plant, during a visit to Cairo by President Vladimir Putin.
The contract to build the plant in Dabaa on the Mediterranean coast was signed during a live ceremony shown on state television and attended by the Russian leader and Egyptian President Abdel Fattah El-Sisi.
“By realizing this project, Egypt will obtain not just the nuclear plant but also access to the most modern and safe technologies,” Putin said after the signing.
The contract was signed by the head of Russian state nuclear company Rosatom, Alexei Likhachev, and Egypt’s electricity and renewable energy minister, Mohamed Shaker.
A statement by Rosatom said it would build four 1,200-Megawatt reactors “as well as supplying nuclear fuel throughout the plant’s entire operational lifetime.”
“This will help ensure competitive electricity pricing in Egypt over a period of 60 years,” it said.
Rosatom also said it will train the plant’s personnel and help Egypt run and maintain the plant for its first 10 years of operation.
Russia’s state news agency TASS reported the cost of the plant at around $30 billion.
The first unit at the Dabaa plant will be commissioned by 2026, Rosatom said.
“Relations between the two countries have a long history and are strong and continuous,” El-Sisi said after the signing ceremony.
He said future projects between Russia and Egypt were also being studied. The two countries signed two agreements in November 2015 for Russia to finance and build the Dabaa plant.
El-Sisi announced the project in February that year during a visit by Putin, when a memorandum of understanding was signed.
Initial work on the project took place in the early 1980s during the regime of president Hosni Mubarak, who was ousted in January 2011, but it later halted over disputes with local residents after the 1986 Chernobyl disaster.
In Monday’s talks, “we discussed another promising project, the creation in Egypt of a Russian industrial zone,” Putin said.
“It will be the largest center producing and exporting Russian goods to markets in the Middle East and Africa ... We expect the volume of total investment in the project to reach $7 billion.”
As Egypt eagerly awaits commercial Russian flights to Egypt to restart, Putin said that procedures for a resumption were still under way.
Moscow suspended flights to Egypt in 2015 after the Daesh group said it had bombed a Russian airliner carrying holidaymakers from a Red Sea resort popular with Russian tourists, killing all 224 people on board.
The plane crash and subsequent suspension badly hit Egypt’s tourism sector, which was already reeling from the political and security turmoil that followed the uprising that toppled Mubarak.
“Russian security services have reported that in general we are ready to open direct flights between Moscow and Cairo. We would need to sign the relevant inter-governmental protocol,” Putin said.
“We will try to sign it in the nearest future.”
— AFP


Egypt hikes gas prices by up to 75 pct in IMF-backed austerity plan

Updated 1 min 15 sec ago
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Egypt hikes gas prices by up to 75 pct in IMF-backed austerity plan

  • The increases follow hikes to fuel, electricity and public transport prices

CAIRO: Egypt said on Saturday it was raising the price of natural gas for home and commercial use by up to 75 percent, the latest move in an IMF-backed austerity program that has left many Egyptians struggling to make ends meet.
The increases follow hikes to fuel, electricity and public transport prices that are part of a $12 billion IMF loan program signed in 2016 that aims to lure back investors and lift the economy battered by political turmoil since 2011.
The government statement published in the Official Gazette said that, effective Aug. 1, the price for consuming up to 30 cubic meters of gas had been set at 0.175 Egyptian pounds ($0.0098) per cubic meter, up from 0.100 pounds.
The price for consuming between 30 and 60 cubic meters was set at 0.250 pounds, up from 0.175 pounds, while consumption of more than 60 cubic meters was set at 0.300 pounds from 0.225 pounds.
The statement did not specify the timeframes over which the consumption levels apply. But officials said they covered the usual billing period, which is monthly in Egypt.
Price hikes under the three-year IMF program helped drive up Egypt’s annual urban consumer inflation rate to 14.4 percent in June. Analysts said the impact of cutting energy subsidies was feeding through to the broader economy faster than expected.

($1 = 17.8500 Egyptian pounds)