Korea vows support to spur $605mn nuclear component exports to Egypt, Romania

Korea Hydro & Nuclear Power Co. (KHNP) headquarters. [Courtesy of KHNP]

The South Korean government has rolled up its sleeves to provide export support to small- and mid-size enterprises taking part in the 800 billion won ($605 million) worth nuclear equipment projects in Egypt and Romania. The support includes down-payment loans and relaxed qualification procedures.

The Ministry of Trade, Industry and Energy said Tuesday that it will speed up issuing orders for projects in Egypt and Romania to promptly supply large-scale export work packages to the domestic nuclear power industry.

The export volume of nuclear power plant equipment is worth 800 billion won for 104 items from the El Dabaa nuclear power project in Egypt and the tritium removal facility project in Romania.

The amount includes 690 billion won for the El Dabaa project in Egypt (81 items) and 110 billion won for the tritium removal facility project in Romania (23 items). More than 200 domestic nuclear power plant and equipment parts companies are known to have attended the briefing session led by the government.

Considering that equipment orders for these projects are scheduled between October this year and June next year, the government plans to sign contracts within six months after issuing orders for each project.

The government plans to ease various burdens on companies to export nuclear facilities.

First of all, 215 suppliers of the Korea Hydro & Nuclear Power Co. (KHNP) will be exempted from the overseas business qualification examination. Initially, in order to participate in the KHNP’s overseas business, companies must pass an examination in three areas, including management, quality, and technology, and register as a qualified supplier for overseas business.

The construction site of Shin Hanul Units 3 and 4 in Uljin-gun, North Gyeongsang Province, South Korea. [Courtesy of KHNP]

In the case of the Barakah nuclear power plant project in the United Arab Emirates (UAE), additional evaluation was required even for existing qualified suppliers. Such procedures will be relaxed to ease the burden on each company, according to the government.

In the area of technical and quality standards, the Korea Electric Power Industry Code (KEPIC), a domestic certification that is more relaxed than the requirements of the host country or client company, will be promoted to increase the participation of domestic nuclear power companies.

If quality certification is needed, the government will support the preparation of quality assurance plans and quality control procedures. Up to 150 million won will also be provided to each company to obtain certifications.

The government will also reduce the cost burden of purchasing raw materials by providing upfront payment and financing support. If a domestic company wins the bid, 15 percent of the contract amount will be paid as an advance payment, or up to 70 percent of the contract amount for performance in the corresponding year will be paid as an advance payment.

The advance payment is payable immediately upon signing the contract. Plans to increase the proportion of upfront payments will also be reviewed, including the funding of up to 80 percent of the contract amount in the form of loans.

The government will also speed up the full normalization of the nuclear ecosystem. Earlier, it identified key tasks, such as the construction of No. 3 and No. 4 Shin Hanul nuclear power plant, continuation of the operation of 10 nuclear power plants, and the development of small modular reactor (SMR) technology.

The government also announced the goal of exporting 10 nuclear units by 2030 and winning 5 trillion won worth of nuclear facility projects by 2027, as well as fostering 100 SMEs that export nuclear facilities independently.