US embassy cable - 04ABUDHABI3412

UNCLAS ABU DHABI 003412 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR NEA/ARP 
 
E.O. 12958: N/A 
TAGS: ENRG, ECON, EINV, KNNP, GM, TC 
SUBJECT: UAE EXPLORES BUILDING NUCLEAR PLANT FOR POWER, 
WATER GENERATION 
 
 
1.  (U) Summary: The UAE signed an MOU with the Government of 
South Korea to undertake a feasibility study regarding 
building a nuclear power plant in UAE.  If constructed, the 
plant could potentially double the country,s power and water 
generation capabilities, and it would be the first nuclear 
power plant in the Gulf.  End summary. 
 
2.  (SBU) The Abu Dhabi Water and Electricity Authority 
(ADWEA) signed an MOU with the South Korean Ministry of 
Science and Technology this month to begin a feasibility 
study to explore constructing a nuclear power plant in UAE. 
ADWEA,s director of planning and development told econoff 
that the South Korean Government approached the UAE about 
undertaking this project, and that the UAEG was interested in 
seeing if such a plant could produce more power and water at 
less cost than the current gas powered facilities.  He 
explained that the UAE is particularly interested in the 
potential water production capabilities of a nuclear power 
plant (up to 40 million gallons of water a day).  According 
to ADWEA,s research center director, the heat produced as a 
by-product from the power generation would be used to 
desalinate water. 
 
3.  (SBU) The ADWEA director of planning and development 
noted that the UAE has a ten-year strategic plan to ensure 
there are no power or water shortages, and a key part of the 
plan is to double power production by 2010 so the country 
produces 9,000 megawatts per day.  He stated that the UAEG 
could spend as much as $10 billion over the next five years 
in order to reach this goal, and if the nuclear plant could 
generate the same amount of electricity at a lower cost, it 
is something the UAEG is interested in pursuing. 
 
4.  (SBU) In a separate meeting with the ADWEA research 
center director, he noted that the UAE has very cheap 
domestic and imported natural gas supplies and was skeptical 
the project would actually produce power and water at less 
cost.  Comment: The decision to proceed with this project 
will be a high-level decision based on the results of the 
feasibility study and political considerations.   It is 
possible that supply security and diversification will be 
just as much a factor in determining whether to construct the 
plant as cost.  End comment. 
 
5.  (U) If constructed, the plant would be the first nuclear 
power plant in the Arab Gulf, and it will be the first plant 
in the world to produce desalinated water as a by-product. 
When asked about whether the IAEA had been apprised of the 
study, both ADWEA officials responded that the South Korean 
Government assured ADWEA that the IAEA knew of and supported 
the project, and the research center director noted that IAEA 
would be consulted throughout the feasibility study.  He also 
explained that the plant would be constructed with 
SMART*System Integrated Modular Atomic Reactor*technology, 
which is an advanced safety system.  The study should begin 
in January and could be completed within the next two years. 
If approved, construction could begin by late 2007 or early 
2008. 
 
6.  (SBU) The director of planning noted that South Korea 
also approached the Jordanian Government about a similar 
project, but he did not know whether they were planning on 
pursuing it. 
SISON