October 12, 2008

Yemen to build USD 15 billion nuclear power plant

Saba news agency reported that a delegation of American and Canadian investors in the field of nuclear energy left Yemen after signing an initial agreement with the Yemeni government to fund a nuclear power plant at an estimated cost USD 15 billion.

The agreement with the US and Canadian firms envisages the construction of 5 nuclear reactors over 10 years to produce nuclear energy. The firms would carry out feasibility studies for building the plant with a total production capacity of 5,000 MW.

Mr Mustafa Bahran energy & electricity minister of Yemen said that the contract was inked with the Houston based Powered Corporation. He added that "The overall cost of the project is estimated at USD 15 billion. It features the construction of 5 nuclear reactors over 10 years. Powered Corporation will oversee efforts to secure the financing of the project."

It is noted that Yemen is looking to build nuclear plant to generate electricity and to desalinate sea water in order to meet the needs of its growing urban population of electrification and water and boost the country's industrial development. It also hopes to diversify and expand its energy resources due to declining oil production.