PRESIDENT MUBARAK ANNOUNCES EGYPT WILL ESTABLISH

C O N F I D E N T I A L CAIRO 003161

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E.O. 12958: DECL: 10/29/2012
TAGS: PREL ENRG IAEA EG
SUBJECT: PRESIDENT MUBARAK ANNOUNCES EGYPT WILL ESTABLISH
NUCLEAR POWER STATIONS

REF: VIENNA 637

Classified By: Minister Counselor for Economic and Political Affairs
William R. Stewart for reasons 1.4(b) and (d).


1. (SBU) President Mubarak announced on October 29 that
Egypt will establish a number of nuclear power stations to
generate electricity. Following the inauguration of a power
plant in North Cairo, Mubarak said Egypt will "prepare the
program for building several nuclear power stations," noting
that "energy security is a major part of building the future
for this country and an integral part of Egypt's national
security system." Mubarak also said he would re-establish
the Supreme Council for the Peaceful Purposes of Nuclear
Power to oversee the program and that Egypt would seek the
help of "international partners" and the IAEA to build the
plants.


2. (C) The GOE has been studying a potential nuclear energy
program since Gamal Mubarak's September 2006 statement at the
annual National Democratic Party (NDP) conference that Egypt
would consider whether to launch a nuclear program to reduce
its reliance on fossil fuel. On October 25, President
Mubarak reportedly met with the Supreme Council of Energy to
discuss the national energy strategy, peaceful uses of
nuclear energy, and renewable energy and also reviewed the
principal GOE-sponsored assessments of a nuclear program.
Analysts predict that the NDP's Energy Committee, led by
Secretary General Dr. Ali El Saidi, will present a paper on

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the nuclear proposal at the upcoming NDP conference (November
3-6) and that either Gamal Mubarak or President Mubarak will
discuss the government's decision to develop nuclear energy
in greater detail at the conference.


3. (C) Comment: Egypt has been cautious, thus far, in
engaging with us on potential cooperation on civilian nuclear
energy. Most recently, the GOE declined to send the Minister
of Electricity to a GNEP ministerial in Vienna, opting
instead to send representatives of Egypt's Atomic Energy
Agency and the Nuclear Power Plant Authority. Meetings with
the nuclear officials on the margins of the ministerial also
signaled Egypt's cautious approach to engagement (reftel).
Given the financial and technical complexity of constructing
nuclear power stations, progress on the initiative will
likely be slow. But the announcement alone will trigger
increased interest in cooperation by nations such as Russia
and China that have a developed expertise in the field. The
announcement may be, in part, an effort to boost both Egypt's
credentials in the region and the Mubaraks' credibility with
the Egyptian people.
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