On December 21, the Ministry of Finance of Ukraine, the state company “NAEC Energoatom”, the Overseas Private Investment Corporation (OPIC) and the Central Storage Safety Project Trust signed agreements on the provision of USD 250 million for the construction of the Central Radioactive Waste Storage Facility.
What’s it about?
A number of agreements have been signed to finance a project for the development and construction of a long-term central radioactive waste storage facility which will provide storage space for the used nuclear fuel from 3 nuclear plants (Rivne, Khmelnytsky and Yuzhnoukrainsk). The facility will be located in Chornobyl exclusion zone. The funds will be engaged for the supply of special storage and transportation containers and other equipment by the US company Holtec International.
With the support of the Ministry of Finance of Ukraine, the US Government’s OPIC will insure political risks (“BOC Coverage”) related to the USD 250 million loan to be received by Energoatom for the construction of the facility. The Ukrainian state shall provide a guarantee for the proper re-payment of this loan by Energoatom.
What’s the benefit?
The project makes it possible to:
- save significant costs by providing alternative solutions to replace the monopoly-like services of Russia for the storage and processing of nuclear fuel. According to the project calculations, the annual savings will amount USD 14 to 22 million (for the period of the production of the planned number of the containers); instead of spending approx. USD 200 million annually for the transportation of the used nuclear fuel to Russia, Ukraine will be able to safely store valuable nuclear materials, till their processing becomes effective in terms of economy and energy supply;
- increase the attractiveness of the Ukrainian energy sector for investors and pave the way for engaging the OPIC in other projects in this sector;
- create new jobs (more than 160), also for the personnel to be released from Chornobyl nuclear plant;
- gain additional funds for the construction of social facilities on the territories specified by the Law of Ukraine No. 4384 of February 9, 2012, through the corresponding allocation of 10% of the project costs;
- ensure the environmental recovery and economic use of a part of Chornobyl exclusion zone.
“The construction of the Central Radioactive Waste Storage Facility enables us to attract investments into the economy of Ukraine amounting USD 250 million. The success of this project will be an incentive for further projects in Ukraine with the participation of the OPIC and will increase the competitiveness of Ukraine as a developed technology nation”, Minister of Finance Oleksandr Danyliuk said.