PAKISTAN ATOMIC ENERGY COMMISSION OFFICIAL DISCOUNTS REPORTS

C O N F I D E N T I A L ISLAMABAD 001803 SIPDIS E.O. 12958: DECL: 05/09/2018 TAGS: ENGY ECON PGOV PREL KNNP PK SUBJECT: PAKISTAN ATOMIC ENERGY COMMISSION OFFICIAL DISCOUNTS REPORTS OF ENHANCED CHINA-PAKISTAN COOPERATION IN NUCLEAR ENERGY Classified by: CDA Candace Putnam, reasons 1.4 (b),(d) and (e) ¶1. (C) Summary: Unsurprisingly, a source in the Pakistan Atomic Energy Commission said that a May 9 article in national circulation daily "Dawn News" reporting enhanced China-Pakistan civil nuclear cooperation was unfounded. The May 9 article alleged that, following President Musharraf's April 2008 official visit to Beijing, the Chinese pledged to fund the construction of six nuclear power plants. Post will continue to follow up on this story. End Summary. ¶2. (SBU) Islamabad-based Dawn News reported in its May 9 print edition that the People's Republic of China will assist Pakistan in the construction of six nuclear power plants. The article reports that China will fund the construction of six 300 megawatt power plants, producing a total of 1,800 megawatts of electricity. The decision reportedly comes following President Musharraf's April 2008 official visit to China. Currently, Pakistan imports nuclear fuel from China for the 300 megawatt Chasma nuclear power plant. ¶3. (SBU) The article, citing unnamed sources, reports that Pakistan is developing a USD 1.2 billion facility to develop the capacity to manufacture "full-cycle nuclear fuel and power plants." The Pakistan Atomic Energy Commission (PAEC) would establish the Pakistan Nuclear Power Fuel Complex (PNPFC) to perfect indigenous capacity to produce pressurized water reactors and nuclear power plants. The complex's chemical processing plant would produce nuclear fuel and materials, including uranium hexafluoride (UF6) from commercially available yellow cake uranium (U3O8). ¶4. (C) Economic section contacts at the Ministry of Water and Power and the Ministry of Petroleum and Natural Resources were genuinely surprised that such a report was published, but could provide no details on the article's claims. Zia Ul Hasan Saddiqui (please protect) of the Pakistan Atomic Energy Commission told EconOff that the Dawn News article was not true and expressed surprise that the article ever made it to press. Saddiqui claimed that China did not plan to supply Pakistan with nuclear power plants and that reports of enhanced China-Pakistan civil nuclear cooperation were unfounded. Saddiqui also took issue with the report that the PAEC was planning on constructing a nuclear fuel complex, claiming that the article makes no mention of where Pakistan would procure nuclear reactors. In general, Saddiqui though the article was contradictory and pieced together conclusions from multiple unfounded sources. ¶5. (C) Saddiqui did confirm, however, that the U.S.-India civil nuclear agreement was an eye opener for Pakistani policy makers. By "leaving Pakistan out" of any civil nuclear cooperation, he continued, Pakistan was forced to "weigh its options" in terms of nuclear energy cooperation. ¶6. (C) Comment: While reports of enhanced civil nuclear cooperation between China and Pakistan appear to be unfounded at this point, Pakistan's Energy Security Plan does place an emphasis on increasing the share of nuclear power generation and enhanced indigenous capacity to produce nuclear fuel and materials. The government's Planning Commission has expressed interest in constructing nuclear power plants with a 1,000 megawatt generation capacity, well above the current capacity of 300 megawatts. However, given the worsening energy crisis and power demand expected to continue to outstrip supply, Pakistan will continue to explore any and all options for additional power generation. End Comment. PUTNAM