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Bullish Areva wants in on SA’s nuclear tender

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France’s state-owned nuclear businesses are focused on winning the lucrative South African nuclear tender despite recent financial difficulties.

The French will bid as EDF/Areva – nuclear technology company Areva sold its reactor business to the state-owned energy utility EDF earlier this year.

French nuclear envoy Pascal Colombani this week criticised rumours of EDF bankruptcy. He said EDF was on a solid financial footing and ready to compete for the nuclear contract.

“The nuclear business is not always easy,” said ­Colombani, adding that EDF was facing large investments at its French operations. Its investment compromised about €50 billion (R869.6 billion) over 10 to 15 years, which would extend the operating lifespan of its ageing fleet to 60 years.

“When you look at the balance sheet of EDF, this is not out of reach for a company that size with the backing of the French government, which we have,” he said.

The French nuclear industry has faced a number of storms during the past year. Areva teetered on the edge of bankruptcy after years of losses wiped out its equity. It was rescued by French state aid and a sale of its ­reactor business to EDF.

The Flamanville project in France, Areva’s first European Pressurised Reactor (EPR) nuclear pressurised water ­reactor, is years ­behind schedule, way over budget and riddled with technical difficulties.

Colombani admitted the Flamanville venture had not gone smoothly: “Like any prototype, it has gone through all sorts of difficulties.”

He said lessons learnt from Flamanville were used in the construction of two more EPR reactors in China, which would finish almost on schedule. Worldwide, four EPR reactors are under construction, not one of which is in operation yet.

France, Russia, China, the US and South Korea are competing for what could be South Africa’s biggest ­procurement project. The contract, estimated to cost ­between R580 billion and R1.56 trillion, aims to add ­nuclear capacity of 9 600 megawatts.

The government has said the nuclear programme would be developed at a pace the country can afford.

French director for the South African bid, Olivier Bard, who accompanied Colombani, said the French offered experience, localisation and a solid partnership, as illustrated by close cooperation at the 1 800MW Koeberg Nuclear Power Station near Cape Town.

Colombani said he could not discuss pricing before the energy department issued its much-awaited ­request for proposals, informing vendors on price, ­affordability, pace and scale of the programme. Originally expected at the end of March, the energy department declined to comment on when the proposals would be issued.

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