Atucha III may become a pipe dream for CNNC

Atucha III may become a pipe dream for CNNC

According to Reuters at earlier time, Argentina and China were expected to reach an agreement to build Atucha III–fourth nuclear power plant in Argentina.

At that time, two states agreed that CNNC and Nucleoeléctrica Argentina SA (NASA) will start construction of a 700,000-kilowatt CANDU-6 heavy water reactor in 2018, and start construction of a million-kilowatt Hualong No. 1 PWR in 2020.

However, according to an insider from China National Energy Industry Corporation (CNEIC), the contract of this project was too difficult to be finally nailed.

The original plan foresee that the total investment of this project needs 14 billion US dollars, of which 12.5 billion US dollars needs to be financed by China. It is also supported by ICBC with low-interest loans, repayment period of 20 years plus an eight-year grace period with an annual interest rate of 4.5%. It is even lower than Argentina’s 10-year Treasury bond calculated by dollar (about 7%).

However, even though it is such a condition that the Argentine side continues to ask for the price out of the market, which result in the stagnation of the project once again.

 

NβN tip: Argentina may shelf CNNC again for exorbitant prices. Except for the fourth reactor, the fifth reactor in Argentina may fail if there is no supporting leadership in Argentina.

About Author

Elaine Li

Elaine Li (李益楠) is Marketing Manager for the Chinese Market. With ten years of experience in the nuclear power market, Elaine is experts for the certification of safety equipment (HAF 604 and 601) and marketing intelligence.

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